Answer:
The loss if discontinued will be 74,000
If keeps production it will lose 12,000
It will lose 62,000 more if discontinues
It is a disadvantage to eliminate this product.
Explanation:
units of X 15,500
unit sales price 25
unit variable cost 19
contribution per unit 6
contribution for X 93,000
105,000 fixed cost
operating result: -12,000
If discontinued then the result will be -74,000
Because, those fixed cost would not be avoidable even if the product was discontinued.
So the annual fiancial disadvantage will be (-74,000) - (-12,000) = -62,000
It will lose 62,000 more cash if discontinues
Answer:
b. 2.81 times
Explanation:
Calculation to determine Total stockholders' equity, end-of-year 121,851
Total asset turnover is:
First step is to calculate the Total assets
Beginning Ending
Total liabilities $83,932 $103,201
Total equity 198,935 121,851
Total assets $282,867 $225,052
Now let determine the Total asset turnover
Total asset turnover = $712,855/[($282,867 + $225,052)/2]
Total asset turnover= 2.81 Times
Therefore Total stockholders' equity, end-of-year 121,851
Total asset turnover is:2.81 Times
Answer: build traffic.
Explanation:
The pricing model employed by such gas stations is built in a way to drive traffic. traffic is important and has an impact in many ways 1. low traffic can bog your business down at some level.
2. When you increase your traffic along with the quality of the visitors, the better you will be able to increase your sales.
traffic in this context refers to customers the more you are able to pull customers over the more sales you make.
Answer:
$9.43
Explanation:
Calculation for what should this stock sell for today
Stock today = $1.60/1.135 + $1.10/1.135^2 + $13.50/1.135^5
Stock today = $9.43
Therefore what should this stock sell for today is $9.43
