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3 years ago

Shown below is a segmented income statement for Mullett Marina’s three main boating service lines:

Business

1 answer:

Alona [7]3 years ago

8 0

Answer:

1. We have:

Contribution margin for the Boat Fuel & Concessions line = $700,000

Contribution margin for the Winter Storage line = $1,200,000

2. Keeping Boat Maintenance service line by $630,000.

Explanation:

Note that after dropping Boat Maintenance service line, its Sales revenue and Variable expenses will be eliminated while all the fixed costs will be retained. This is because, generally in Management Accounting, the fact that a a fixed cost is a direct cost does NOT mean that it is avoidable.

Note: See part a of the attached excel for the Segmented Income Statement Before Dropping Boat Maintenance service line, and see part b of the attached excel for the Segmented Income Statement After Dropping Boat Maintenance service line.

1. If the Boat Maintenance service line is dropped, what is the contribution margin for the Boat Fuel & Concessions line? For the Winter Storage line?

In the part b of the attached excel, we have:

Contribution margin for the Boat Fuel & Concessions line = $700,000

Contribution margin for the Winter Storage line = $1,200,000

2. Which alternative (keep or drop the Boat Maintenance line) is now more cost effective and by how much?

From the part a of the attached excel file, we have:

Operating income before dropping Boat Maintenance service line = $815,000

Operating income after dropping Boat Maintenance service line = -$185,000

Cost saving = $815,000 - $185,000 = $630,000

Therefore, keeping Boat Maintenance service line by $630,000.

Download xlsx

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Required information

Dmitriy789 [7]

Answer:

a) c) d)

Explanation:

a) The seller does not have to decide who gets credit - this is done by the card issuer

c) seller receives cash sooner than if credit is granted directly to the customers - The cash is received from the card issuer

d) may allow seller to increase sales volume - As cash is available to those who otherwise might not have it for purchases

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4 years ago

During a business cycle expansion, total production ________ and total employment ______

kicyunya [14]

During a business cycle expansion, total production increases and total employment increases.

<h3>What does "business cycle" mean?</h3>

Business cycles are a sort of variation that may be observed in the overall economic activity of a country.
A business cycle is made up of expansions that occur roughly at the same time in many different economic activities, followed by contractions that are similarly widespread (recessions).
This series of modifications is periodic but not recurring. Economic activity goes through periods of boom and then contraction during business cycles.
Both the general welfare of society and the welfare of private entities are affected by these developments.

To learn more about business cycles, refer to the following link:

brainly.com/question/26086110

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2 years ago

The company had 1,600 shares of 3.0%, $100 par value preferred stock outstanding that paid a cumulative dividend. The amount of

daser333 [38]

Answer:

C. $2600

Explanation:

First, the complete question is as follows:

Curtain Co. paid dividends of $4,000; $5,000; and $8,000 during Year 1, Year 2, and Year 3, respectively. The company had 1,600 shares of 3.0%, $100 par value preferred stock outstanding that paid a cumulative dividend. The amount of dividends received by the common shareholders during Year 3 would be:

A. $4800

B. $1000

C. $2600

D. $800

Solution

First, what is the yearly dividend for the preferred stock

= (The Number of shares x Par value) x 3%

= (1600 shares x $100) x 0.03

= $4,800

Use this value to determine the schedule of Preferrence dividend as follows:

Year 1: Preferred dividend = $4,000,

Preferred dividend in arrears for year 1 = Yearly dividend - paid dividend in year 1

= $4,800 - $4,000 = $800

Year 2: Preferred dividend = $5000

Preferred dividend in arrears for year 2= $4,400 + $800 -$5,000 = $600

year 3: Preferred Dividend = Yearly dividend + dividend in arrears from year 2

= $600 + $4,800 = $5,400

Therefore, the dividends available to common stockholders = $8,000- $5,400 = $2,600

4 0

3 years ago

Read 2 more answers

Tyson is a 25 percent partner in the KT Partnership. On January 1, KT makes a proportionate distribution of $16,000 cash and lan

mina [271]

Answer:

No option is correct. The options include inventory, while the question does not mention any inventory distributed.

Tyson's basis on the land is $4,000.

Explanation:

Tyson's basis on the land = total distribution - cash distribution = $20,000 - $16,000 = $4,000

A partner only needs to recognize a gain on a distribution when the cash distribution is larger than the partner's basis. In this case, the partner's basis is more than the cash distribution. The partner's basis for the rest of the assets distributed will be equal to the difference between the partner's basis - cash received.

In this case, since the difference is $4,000, then the basis for the land will be reduced.

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4 years ago

A good process should __________ and remove the inflexibility of a defined procedure of operation.

pickupchik [31]

A good process should<u> facilitate the adaptability</u> and remove the inflexibility of a defined procedure of operation.

Answer: Option 1.

<u>Explanation:</u>

A good process is the one which does not remain the same forever. It should have facilities for accepting the changes where ever they are needed. The changes should be done with time.

A good process should not be inflexible and it should be flexible. The flexibility only should make it adaptable to the changes over a period of time for more development.

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3 years ago