All categories

3 years ago

The condensed product-line income statement for Rhinebeck Company for the month of October is as follows:

Business

1 answer:

Sonja [21]3 years ago

7 0

Answer:

Mufflers should be continued (Alternative 1)

Explanation:

Preparation of a differential analysis dated to determine if Mufflers should be continued (Alternative 1) or discontinued (Alternative 2).

DIFFERENTIAL ANALYSIS

Continued (Alternative 1); Discontinued (Alternative 2); Differential effect on income Alternative 2)

October 31

Revenue $45,000 $0 ($45,000)

Costs:

Variable cost of goods sold ($21,600) $0 $21,600

[$27,000*(1-20%)]

Variable selling and administrative expense

($17,500) $0 $17,500

[$25,000*(1-30%)]

Fixed income ($12,900) ($12,900) $0

[($27,000*20%)+($25,000*30%)]

Income(Loss) ($7,000) ($12,900) ($5,900)

Based on the above Differential Analysis MUFFLERS SHOULD BE CONTINUED reason been that the income will decrease by $5,900 if Mufflers discontinued.

You might be interested in

For each scenario, decide whether it creates a producer or a consumer surplus. Then, calculate the ensuing surplus.

Gnom [1K]

Answer:

Alice's consumer surplus = $5

Jeff's consumer surplus = $16

Nicole's producer surplus = $1

Explanation:

Consumer surplus is the difference between the willingness to pay of a consumer and the price of a good.

Consumer surplus = willingness to pay - price of the good

Producer surplus is the difference between the price of a good and the least price the producer is willing to accept

Producer surplus = price of the good - least price the producer is willing to accept

Alice's consumer surplus = $30 - ($35 - $10) = $5

Jeff's consumer surplus = $20 - [$16 - (0.75 x $16)] = $16

Nicole's producer surplus = $501 - $500 = $1

5 0

3 years ago

If the government uses tax money to pay for long-term investments such as roads or other infrastructure, what happens to the eco

coldgirl [10]

Is this a theory type of question?

If it is and if it took place under president Calvin Coolidge then taxes likely would have gone up.

If you are talking about now, then investment might go up but in order to pay for it, the government will just print more money, so that taxes shouldn't go up.

I'd pick C.

4 0

3 years ago

Read 2 more answers

In what country do the three largest shareholders control, on average, about 60 percent of the shares of a public company?

Kazeer [188]

Answer:

B, Italy

Explanation:

In Italy, 60 percent of the shares of a public company are owned by the 3 largest shareholders. This invariably means that the decision making of public companies are mostly at the mercy of just 3 persons as against larger numbers in other countries.

Cheers

5 0

3 years ago

A firm is thinking about adding a product to its product line. What is the most likely outcome if the firm goes through with thi

Alinara [238K]

The <u>most likely outcome</u> when a firm is thinking about adding a product to its product line is D. The new product can be advertised alongside existing products

<h3>What is product advertising?</h3>

Product advertising:

Is a management effort geared towards creating a demand for a product.
Promotes consumer awareness.
Fosters consumer interest in the product.
Encourages consumers to make purchase decisions quickly as they see the product.

Thus, most likely, adding a product to the product line will help the new product to be advertised alongside existing ones.

Learn more about product advertising at brainly.com/question/1658517

#SPJ1

<h3>Question Completion with Answer Options:</h3>

A. It will be difficult to manufacture the product.

B. The company will have to work hard to build up the brand.

C. The new product is certain to be accepted by the market.

D. The new product can be advertised alongside existing products.

E. It will take a long time for customers to feel loyal to the product.

7 0

2 years ago

On July1, 2018, Morrow Inc. purchased a spooler at a cost of $40,000. The equipment is expected to last five years and have a re

Mazyrski [523]

Answer:

(1) the double-declining-balance method

Depreciation for 2018 = $16,000

Depreciation for 2019 = $9,600

Book value of the spooler at December 31, 2018 = $24,000

Book value of the spooler at December 31, 2019 = $14,400

(2) the sum-of-year digits

Depreciation for 2018 = $12,000

Depreciation for 2019 = $9,600

Book value of the spooler at December 31, 2018 = $28,000

Book value of the spooler at December 31, 2019 = $18,400

Explanation:

(1) the double-declining-balance method

Note: See part 1 of the attached excel file for the computation of depreciation for 2018 and 2019 and the book value of the spooler at December 31, 2018 and 2019 using the double-declining-balance method.

Double-declining-balance method can be described as a depreciation technique in which the rate at which an asset is depreciated is twice depreciation rate for the straight line depreciation method.

The double-declining-balance depreciation rate for Morrow Inc. can therefore be calculated as follows:

Straight line depreciation rate = 1 / Number of expected useful years = 1 / 5 = 0.20, or 20%

Double-declining depreciation rate = Straight line depreciation rate * 2 = 20% * 2 = 40%

The 40% double-declining depreciation rate is what is employed in part 1 of the attached excel file table.

Note:

Although this is not part of the question but it will be useful for you in the future. The depreciation expenses for year 2022 is calculated by deducting the residual value of $4,000 from the 2022 Beginning depreciable amount (i.e. $5,184 - $4,000 = $1,184). The residual value of $4,000 therefore represents the book value at the end of year 2022.

(2) the sum-of-year digits

Note: See part 2 of the attached excel file for the computation of depreciation for 2018 and 2019 and the book value of the spooler at December 31, 2018 and 2019 using the sum-of-year digits method.

The sum-of-year digits method can be described as a depreciation method that accelerates deprecation by assuming that an asset’s productivity falls with the passage of time.

Under the sum-of-year digits method, the remaining useful life of the asset at the beginning of the period is divided by the sum of the year's digits to obtain the deprecation rate for that period.

For this question, the Sum of year digits used in the attached excel file is calculated as follows:

SYD = Sum of year digits = 1 + 2 + 3 + 4 + 5 = 15

Download xlsx

3 0

3 years ago