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Musya8 [376]
2 years ago
12

Kelley Company and Mason Company each have sales of $200,000 and costs of $140,000. Kelley Company's costs consist of $40,000 fi

xed and $100,000 variable, while Mason Company's costs consist of $100,000 fixed and $40,000 variable. Which company will suffer the greatest decline in profits if sales volume declines by 15%?
Business
1 answer:
nikklg [1K]2 years ago
7 0

The firm that would suffer the greatest decline in profits if sales volume declines by 15% is Mason Company.

The cost of a company is made up of fixed cost and variable cost. Fixed cost is the cost that does not vary with output of the company. It remains fixed no matter the level of output. An example of fixed cost is rent. Variable cost is the cost that varies with output. If output increases, variable cost increases and if output falls, output decreases.

If sales volume decreases, the output of Mason Company would decline more compared with the output of Kelley company because it has a higher fixed cost. So, we when sales reduces, its cost would would not reduce as many as the cost of Kelley company.

To learn more, please check: brainly.com/question/13059508

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Cuso Company purchased equipment on January 1, 2016, at a total invoice cost of $400,000. The equipment has an estimated salvage
grigory [225]

Answer:

D. $156,000

Explanation:

Cost = $400,000

Residual value = $10,000

Useful life = 5 years

Now,

Annual straight line depreciation = \frac{Cost-Residual Value}{Useful life}  

Annual straight line depreciation = \frac{400,000 - 10,000}{5}  

Annual straight line depreciation = \frac{390,000}{10}  

Annual straight line depreciation = $78,000

Annual depreciation expense is transferred to the accumulated depreciation. Thus, accumulated depreciation is sum of depreciation expense charged over the useful life of the asset.

Depreciation table has been constructed to compute the accumulated depreciation on 31st December 2017.

5 0
2 years ago
Opportunity costs at a manufacturing company are not part of manufacturing overhead. True or false?.
Bess [88]

It is true that Opportunity costs at a manufacturing company are not part of manufacturing overhead.

<h3>What is Opportunity costs ?</h3>

Opportunity costs can be described as the term that represent the potential benefits which  individual, investor, misses out in the process of choosing one alternative over another.

Because opportunity costs are unseen  can be easily overlooked, therefore, in this case, It is true that Opportunity costs at a manufacturing company are not part of manufacturing overhead.

Learn more on Opportunity costs at:

brainly.com/question/1549591

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6 0
1 year ago
Which of the following statements are TRUE about credit scores?
Fittoniya [83]
The statement that are true about credit scores are; credit scores reflect how likely individuals are to repay their debts. The credit bureau does not hide how it calculates peoples credit. The correct answer is A. 
7 0
2 years ago
Read 2 more answers
When does a corporation record an increase in Dividends Payable?
Gnoma [55]

Answer:

B. On the declaration date

Explanation:

Dividend payable are usually advised by management but must be ratified by the shareholders (usually in the annual general meeting) for such to be come recognizable in the books. The date of ratification is the declaration date

As such a corporation record an increase in Dividends Payable on the declaration date.

The right option is B. On the declaration date

4 0
3 years ago
The _____ for an activity is the latest possible time an activity might begin without delaying the project finish date.
muminat

Answer:

The correct answer is A that is late start date.

Explanation:

Late start date is the filed which comprise of the latest date on which a task could be started without delaying the finish of the project.

The date is grounded on the date when the task is started and also on the late start of the task, late finish dates of the tasks predecessor and the successor as well and also on other constraints.

So, the late start date for the activity is the latest possible time.

7 0
3 years ago
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