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Alja [10]
3 years ago
8

Based on the segment income statement below, Chips, Inc. is considering eliminating its Barbecue Division line. Revenue from Bar

becue Division sales $ 510,000 Salaries for Barbecue Division workers (110,000 ) Direct material (315,000 ) Sunk costs (equipment depreciation) (77,500 ) Allocated company-wide facility-sustaining costs (55,000 ) Net loss $ (47,500 ) If Barbecue Division were eliminated, profitability would
Business
1 answer:
zloy xaker [14]3 years ago
7 0

Answer: Decrease by $70000

Explanation:

Before the Barbecue Division is eliminated, the profit gotten will be:

Revenue from Barbecue Division sales = $510,000

Less: Salaries = $110000

Less: Direct material = $315000

Profit = $70000

Therefore, based on the analysis above, If Barbecue Division were eliminated, profitability would decrease by $70000

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Investors and creditors are interested in the probability that their original investment or loan will eventually be returned, an
11111nata11111 [884]

Answer:

Option C Cash Flow Prospects.

Explanation:

The cash flow prospect shows that lending the firm money will increase its performance or not and also that the company is generating enough cash flows that it will be paying returns and principle amount on time. If the cash flwo prospect shows that the company will not be delivering value because it is already struggling with its cash flows issues. Then the money lender will not be interested in paying the company because the company might not pay back the returns and the principle amount.

8 0
3 years ago
A7X Corp. just paid a dividend of $2.80 per share. The dividends are expected to grow at 20 percent for the next eight years and
kifflom [539]

Answer:

The price of the stock today=$560

Explanation:

We can use the expression for calculating the required rate of return to calculate the price of the stock today:

RRR=(EDP/SP)+DGR

where;

RRR=required rate of return

EDP=expected dividend payment

SP=share price

DGR=dividend growth rate

In our case:

RRR=13%=13/100=0.13

EDP=$2.80 per share

SP=unknown

DGR=20% and 8%, the average DGR=(20+5)/2=12.5%=0.125

replacing in the original expression;

0.13=(2.8/SP)+0.125

2.8/SP=0.13-0.125

2.8/SP=0.005

SP=2.8/0.005

SP=$560

The price of the stock today=$560

6 0
3 years ago
At the beginning of 2018, England Dresses has an inventory of $140,000. However, management wants to reduce the amount of invent
Bad White [126]

Answer:

purchases = 160000

Explanation:

given data

beginning inventory = $140,000

amount of inventory on hand = $80,000

net sales = $400,000

gross profit rate = 40%

solution

we first Computation of cost of goods sold  hat is

Gross profit rate = \frac{gross profit}{net sales} × 100

= \frac{gross profit}{400000} = = \frac{40}{100}

= 100 Gross profit = 16000000

so

Gross profit = 160000

and

Cost of goods sold is = sales - gross profit

so

Cost of goods sold = 400000 - 160000

Cost of goods sold = 240000

and

Cost of goods sold = opening inventory + purchases - closing inventory  

so put here value

240000 = 140000 + purchases - 60000

so purchases = 160000

7 0
3 years ago
A company is offering perpetual preferred stock (its dividend payments last forever) with a fixed annual dividend of $100. If yo
sukhopar [10]

Answer:

833.33

Explanation:

The fixed annual dividend is $100

The required rate of return on this investment is 12%

Therefore the value for each share can be calculated as follows

= 100/(12/100)

= 100/0.12

= 833.33

Hence the value for each share is 833.33

8 0
3 years ago
What agency provides over 25,000 government publications?
shepuryov [24]

Answer:

Correct Answer:

4. The Government Printing Office

Explanation:

The United States Government Publishing Office is an agency of the legislative branch of the United States federal government with the mandate to inform the Nation by producing, procuring, and disseminating printed and electronic publications of the Congress as well as the executive departments and establishments of the Federal Government.

7 0
3 years ago
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