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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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3 years ago
The management at Burgerjoy, a small restaurant, finds that the lower the price of hamburgers, the more hamburgers are sold. Thi
Anika [276]

Answer:

Negative linear

Explanation:

Negative linear is when two variables move in the opposite direction.  Movement by one variable causes the other to move in the opposite direction. Negative linear is similar to an indirect relationship between the variable.  For Bungerjoy, the variables are price and sales of hamburgers.

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3 0
3 years ago
Kingsbury Manufacturing has net sales revenue of $850,000, cost of goods sold of $344,600, and all other expenses of $328,300. T
gladu [14]

Answer:

56.46%

Explanation:

The computation of the gross profit percentage is shown below

Gross profit percentage is

= (Sales - cost of goods sold) ÷ (Sales) × 100

where,

Sales is $850,000

And, the cost of goods sold is $344,600

Now placing these values to the above formula

So, the gross profit percentage is

= ($850,000 - $344,600) ÷ ($850,000) × 100

= $505,400  ÷ $850,000 × 100

= 56.46%

8 0
3 years ago
Question 2 of 5
patriot [66]

Answer:

A

Explanation:

to ensure that you pay at least the minimum amount by the due date.

8 0
3 years ago
Read 2 more answers
Jamestown Ltd. currently produces boat sails and is considering expanding its operations to include awnings for homes and travel
Law Incorporation [45]

Answer:

e. $1,285,000

Explanation:

The computation of the initial cash flow is shown below:

= Land current value + grading and excavation work cost + unused equipment  cost + producing awnings cost + other equipment cost

= $425,000 + $15,000 + $60,000 + $5,000 + $780,000

= $1,285,000

The cost which is required for the expansion cost is considered

All other information which is given is not relevant. Hence, ignored it

4 0
3 years ago
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