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DochEvi [55]
2 years ago
6

Wallen Corporation is considering eliminating a department that has an annual contribution margin of $80,000 and $160,000 in ann

ual fixed costs. Of the fixed costs, $50,000 cannot be avoided. The annual financial advantage (disadvantage) for the company of eliminating this department would be: a. $10,000 b. ($10,000)c. $30,000 d. ($30,000) e. None of the above. The answer is:_________.
Business
1 answer:
Leya [2.2K]2 years ago
3 0

Answer:

The correct answer is D.

Explanation:

Giving the following information:

Annual contribution margin of $80,000 and $160,000 in annual fixed

costs.

Of the fixed costs, $50,000 cannot be avoided.

<u>To calculate the financial impact on income, we need to use the following formula:</u>

Effect on income= avoidable fixed costs - contribution margin

Effect on income= 50,000 - 80,000

Effect on income= -$30,000

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answer is b

Explanation:

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3 years ago
Internal controls that should be applied when a business takes a physical count of inventory should include all of the following
irina1246 [14]

Answer:

e) Counters of inventory should be those who are responsible for the inventory.

Explanation:

Having different people do the physical counting of inventory guarantees the integrity of the count. The staff in charge of inventory are probably aware of any variances as they conduct regular checks. Having different people count eliminates the possibility of number manipulation by the staff responsible for the stock.

Before a stock count, all operations should be halted. Items received during the stock count should be separated and not counted. There should be a document giving instructions to staff to ensure consistency.

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3 years ago
You own a shoe store with a merchandise book value of $178,000. You conduct a physical inventory and find the value to be $169,0
lozanna [386]

Answer:

1.89%

Explanation:

The book value of the merchandise is  $178,000

Physical inventory reveals stock is worth $169,000

The shrinkage = $178,000 - $169,000

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=$9000/$476,000 x 100

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6 0
3 years ago
Performance Bicycle Company makes steel and titanium handle bars for bicycles. It requires approximately 1 hour of labor to make
alexdok [17]

Answer:

Overhead cost allocated to steel bars = $4.6 \times 6,600 = $30,360

Explanation:

Provided information,

Two products manufactured

Steel Bars and Titanium bars

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Total hours @ 1 hour for each = 6,600 + 3,400 = 10,000

Total Setup cost = $46,000

Cost per hour based on direct labor hours = $46,000/10,000 = $4.6

Overhead cost allocated to steel bars = $4.6 \times 6,600 = $30,360

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3 years ago
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3 years ago
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