A person should consume more of something when its marginal.

Momentum Rollerblades has three product lines: D, E, and F. The following information is available:

Mila [183]

Answer:

Operating income will increase by $16,000. This is not given as one of the options.

Explanation:

The difference between the sales and variable expense gives the contribution margin. The contribution margin net the fixed cost gives the operating income or loss.

D E F

Sales revenue $90,000 $40,000 $30,000

Variable costs ($40,000) ($10,000) ($10,000)

Contribution margin $50,000 $30,000 $20,000

Fixed costs ($10,000) ($5,000) ($25,000)

Operating income (loss) $40,000 $25,000 ($5,000)

The total operating income is

= $40,000 + $25,000 + ($5,000)

= $60,000

Should the fixed costs of F be eliminated, the operating income/(loss) of F

= $21,000 - $5,000

= $16,000

This is the net increase in the total operating income.

7 0

3 years ago

Only you can open your safety deposit box. True False

Amanda [17]

Yes and No. In the event of your death or a sickness, you can appoint someone as a deputy to be responsible for the contents of your box. However, other people, like the IRS, cannot open your safety deposit box.

4 0

3 years ago

Read 2 more answers

Margie received her store order on 12 3 16 at 4:00 a.M. She just opened one of the fountain bibs today 12 7 16 at 12:00 p.M. The

Kruka [31]

Answer and Explanation:

The correct way for putting this on expiration paper is as follows

Expiration date: 1/17/2017

Exp time: 4:00 AM

Preparation date: 12/3/2016

Preparation time: 4:00 AM

The above represents the correct way i.e to be putted on an expiration paper

Therefore we applied the given information to arrive at an answer

6 0

3 years ago

Tsao Company budgets on an annual basis. The following beginning and ending inventory levels (in units) are plannned for the yea

Kisachek [45]

Answer:

a) production units = 450,000

b) Amount of raw materials = 1,010,000.

Explanation:

The production budget is computed as follows;

Production budget = Sales budget + closing inventory - opening inventory

Production budget= 480,000 + 50,000 - 80,000

= 450,000 units

The raw material purchase budget is the amount of material to be purchased to accommodate production need and inventory of materials to be kept.

Purchase budget = usage budget + closing inventory - opening inventoy

Purchase budget = (2× 500,000) + 45,000 - 35,000

= 1,010,000.

4 0

3 years ago

At the end of the year, a company has a balance in Allowance for Uncollectible Accounts of $2,200 (credit) before any year-end a

Lapatulllka [165]

Answer: Debit Bad debt expense $7,300; Credit Allowance for doubtful accounts $7,300.

Explanation: 5% of accounts receivable of $190,000 is $9,500. Remember the credit balance in Allowance for uncollectible accounts is $2,200 prior to any adjustment and this reports to the balance sheet. To reinstate this account to the required provision for uncollectible amount of $9,500, we need to adjust for the difference (that is, $9,500 minus $2,200 existing balance), which is $7,300. Then, the entries above would be recorded.

3 0

3 years ago