Assume a retailing company has two departments-Department A and Department B. The company's most recent contribution format income statement follows: Department Department Total B Sales: A $ 350,000 120,000 $ 450,000 $ 800,000 320,000 480,000 200,000 Variable expenses Contribution margin 230,000 250,000 Fixed expenses 400,000. 140,000 260,000 Net operating income (loss) $ 80,000 $ 90,000 $ (10,000) The company says that $130,000 of the fixed expenses being charged to Department B are sunk costs or allocated costs that will continue if the segment is discontinued. However, if Department B is discontinued the sales in Department A will drop by 7%. What is the financial advantage (disadvantage) of discontinuing Department B? Multiple Choice A) $(128,000) B) $(132,000) C)$(156,100) D) $(136,100)
Answers
To determine the financial advantage or disadvantage of discontinuing Department B, we need to consider the impact on net operating income.
Currently, Department B has a net operating loss of $10,000. If Department B is discontinued, the fixed expenses allocated to it, which amount to $130,000, will be eliminated. However, the sales in Department A will drop by 7%.
To calculate the financial advantage or disadvantage, we need to calculate the change in contribution margin for Department A due to the decrease in sales:
Change in Contribution Margin = Sales in Department A * Contribution Margin Ratio
Contribution Margin Ratio = Contribution Margin / Total Sales
Contribution Margin Ratio for Department A = $250,000 / $800,000 = 0.3125
Change in Contribution Margin = $450,000 * 0.3125 * 0.07 = $9,112.50 (rounded to nearest dollar)
Now, we can calculate the financial advantage or disadvantage:
Financial Advantage/Disadvantage = Change in Contribution Margin - Fixed Expenses Saved
Financial Advantage/Disadvantage = -$9,112.50 - $130,000 = -$139,112.50 (rounded to nearest dollar)
Therefore, the financial advantage (disadvantage) of discontinuing Department B is approximately $(139,100).
The closest option is D) $(136,100), so D) $(136,100) would be the most appropriate answer.
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Related Questions
Sydnee would like a chart to appear once in her report, but she is having trouble making this occur. She does not understand why the chart is showing multiple times in the report. What is most likely causing the problem?
The chart is placed in the header and footer of a database.
The chart is placed in the field of a database.
The chart is placed in a database with one group.
The chart is placed in a database with five groups.
Answers
Answer:
The chart is placed in a database with five groups.
Hope this helped.
True or false: Partnerships are less likely to survive than sole proprietorships. True false question.
Answers
Answer:
true
Explanation:
why is it important to protect profit motive in a mixed economy
Answers
Answer:
A company's profit motive benefits consumers by ensuring the products and services they need are available at a high quality.
Explanation:
I looked it up, cause I don't know much about this stuff, but I hope it helps you!
Identify two simplifying assumptions associated with discounted cash flow methods of making capital budgeting decisions.
Answers
The idea that all cash flows happen at the end of a period is one. Another is the prompt reinvestment of all cash inflows at a rate of return equal to the discount rate.
What is capital budgeting?
A business uses capital budgeting to decide which planned fixed asset purchases it should approve and which it should reject. Each proposed fixed asset investment is given a quantitative assessment through this procedure, providing a sound foundation on which to base a decision. In corporate finance, capital budgeting and investment evaluation refer to the planning process used to assess whether a business should make long-term investments in new or replacement machinery.
The term "discounted cash flow" (DCF) refers to a method of valuation that calculates an investment's value based on its anticipated future cash flows. Using estimates of how much money an investment will make in the future, DCF analysis seeks to evaluate the value of an investment today.
The idea that all cash flows happen at the end of a period is one. Another is the prompt reinvestment of all cash inflows at a rate of return equal to the discount rate.
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The buyer of an industrial complex wants the broker to place the earnest money in an interest bearing account. The broker does this, clearly identifying all parties who are to receive the interest and the date the earned interest is to be disbursed. With only the verbal consent of the buyer, he places the money in an insured account in a depository in Florida. When the time comes to disburse the account, the broker will write a check to the buyer for the interest as the buyer agreed. Which statement describing this situation applies?
Answers
Answer:
Explanation:
In this situation, the statement that would best apply would be that the broker does not have the right to ever use an interest-bearing account under Florida Real Estate laws. Since Florida Real Estate laws specifically prohibit a broker from placing a clients money in an interest account then the broker in this scenario is breaking the law and can have his real estate license taken away as well as being fined.
refers to the extent to which processing activity is devoted to a particular stimulus. question 5 options: a) sensory marketing b) an embed c) attention d) subliminal perception
Answers
Subliminal perception refers to the extent to which processing activity is devoted to a particular stimulus.
Hence, Option D is correct
Subliminal perception is the perception of a series of stimulus which the person is not consciously aware of and gets under the influence involuntarily, in addition to the perception with the five sense organs .Subliminal stimuli are any sensory stimuli below an individual's threshold for conscious perception, in contrast to supraliminal stimuli. According to a 2012 review of studies using functional magnetic resonance imaging, participants are unaware when subliminal stimuli cause certain brain regions to become active.Advertising uses subliminal messages to entice consumers on a subconscious level. Customers can form brief but effective associations between a brand and the intended meaning thanks to the varied colors, shapes, and words used in these advertisements. Be subtle, in other words. Additionally, ads have a long history of being subtly wordedTo know more about subliminal reception here
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The dual value on the nonnegativitiy constraint for a variable is that variable's sunk cost. surplus value. reduced cost. relevant cost.
Answers
The dual value on the nonnegativity constraint for a variable is that variable's relevant cost. This is the minimum amount by which the variable cost has to be reduced to get it accepted as an input to the production process. The objective of any business organization is to maximize profits and minimize costs.
Cost optimization is crucial in every sector, and so it is vital to estimate and analyze the costs of every input in the production process. The dual value or shadow price can be used to estimate the change in the value of the objective function due to a unit change in the value of the corresponding constraint. It is also known as the opportunity cost. The dual value of non-negativity constraints represents the change in the objective function due to the increase of the right-hand side of the constraint by one unit, assuming all other constraints remain unchanged.
In conclusion, the dual value of the non-negativity constraint is the relevant cost for the variable and indicates the minimum amount by which the variable cost should be reduced to be accepted as an input to the production process.
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Which of the following terms describes doing things in a way that dies not deplete natural resources or damage the environment
Answers
Answer:
B. sustainability
Explanation:
Here are the options to this question
A. efficiency
B. sustainability
C. reliability
D. renewable
Sustainability involves the proper use of resources found in the environment to ensure that they last or are available for future generations.
Methods of ensuring environmental sustainability :
1. recycling
2. reducing the use of non renewable resources and using more renewable resources
3. reducing the amount of pollution
Answer:
sustainability
Explanation:
edge 22
Explain the importance of team dynamics (plz help)
Answers
Team dynamics in the workplace are important because they impact creativity, productivity and effectiveness. Since group work is integral to organisations, improving group dynamics can lead to better work outcomes, customer satisfaction and an improved bottom line.
HELP PLEASSEE!!
What cultural change is a major driving factor for why the entertainment field is so
competitive in modern times?
A. rising standard of living
B. deterioration of goodwill
C. shrinking reach of companies
D. lower threshold for wear-out
Answers
I THINK it's A but i'm not sure
The founders of the U.S. wanted to avoid establishing a permanent aristocracy or group of wealthy families who could control a great deal of the nation’s wealth. How is this idea related to estate and gift taxes?
Answers
Answer:
There are two points that I would like to single out that are very similar. First by implementing tax and gift taxes, Founding Father wanted to weaken families and business of that time, since there was a threat that rich families could become permanent aristocracy which over time could lead to the point where that families will rule the US. Second, by implementing those two taxes, government is taking a share from receivers since the receivers are getting some good that they did not earn it, they have just received it as a gift or as an estate. This way inheritance or gift would be of a much lesser value then it was before someone’s death or before someone made a gift. This was important because wealth of powerful families would just accumulate and grow so government of that time, strictly out of political reasons, prescribed those two taxes, so that the wealth will be smaller of value after tax.
The idea of avoiding an aristocracy by the founders of USA is related to estate and gift taxes because:
There was a need to reduce the influence of the wealthyAccording to the given question, we are asked to show the link which the founders of America had to preventing aristocracy and imposing estate and gift taxes.
As a result of this, we need to remember than an aristocracy is a government based on the wealthy and influential members of the society and this was one of the things which the Founding Fathers of America sought to prevent.
With this in mind, we can see that they imposed gift and estate taxes which was specifically targeted at the extremely wealthy so that their influence would be reduced and the country would not become an aristocracy.
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The (Blank) type tire pressure gauge is generally the most accurate.
Select one:
a. Pencil
O b. Dial
O c. Digital
d. None of the above
Answers
Answer:
the answer youre looking for is C. digital
business founders hold equity. true or false
Answers
Answer: true
Explanation:
True or false: The price level can remain stuck at its old level even when aggregate demand declines.
Answers
The answer is True. When aggregate demand declines, the price level can remain stuck at its old level due to a variety of factors such as rigid wages and prices, or expectations of future inflation.
This phenomenon can occur due to factors such as price stickiness or downward wage rigidity, which may prevent the price level from adjusting immediately to a decline in aggregate demand.
As a result, the price level may remain stuck at its old level for some time even when aggregate demand decreases.
This can lead to a situation called "sticky prices" where prices do not adjust quickly to changes in demand or supply.
Hence, the statement is true.
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For both articles, what can you tell me about the values of Harvard and Entrepreneur?
Answers
The article referenced is "If you want to be an entrepreneur, don't go to Harvard.
What are the values of the Harvard Graduate viz a- viz that of the Entrepreneur?Regardless of the size of the organization, "Core Values" should be prioritized. Values direct the path of business, influencing strategy and decision making. Essentially, basic principles serve as the foundation around which we develop our firm. Core Values provides several advantages to the firm.
Students at Harvard have access to classes, research institutions, and faculty mentors from around the university. It's the ideal location to explore your favorite and yet-to-be-discovered academic interests, with world-renowned teachers, cutting-edge resources, and personalized training.
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With the help of online research, write a short report on “glocalization.”
Answers
The phenomena of Glocalization, which is best described as Thinking Globally, Acting Locally, is created when the two terms of globalisation and localization are combined.
To put it more properly, we may say that although if a single brand is produced, sold, and distributed globally, it is nevertheless personalised and customised to suit the tastes and preferences of customers in the many global marketplaces.
It is carried out since each region of the world has its own unique culture, linguistic preferences, demands, and desires.
By adjusting their offerings and products to meet the needs of that specific market, businesses may effectively position and place their items, resulting in high revenues and devoted customers.
The following are all global brands, although they cater to the demands of their customers in various parts of the world while selling items.
Chips by Lays (They sell different flavours in different parts of the world, according to the taste preference and eating habits of that country).
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What is vulnerability? Give examples of vulnerability and the
mitigation method can be taken to remove it.
Answers
Vulnerability refers to a weakness or flaw in a system, process, or infrastructure that can be exploited by malicious actors to gain unauthorized access, disrupt operations, or compromise data integrity and confidentiality. Vulnerabilities can exist in software, networks, hardware, and even human factors.
Software Vulnerability: A software application may contain coding errors or design flaws that can be exploited.
Network Vulnerability: Weak network configurations, unsecured wireless networks, or outdated protocols can leave networks vulnerable.
Social Engineering Vulnerability: Humans can be a weak link in security.
Hardware Vulnerability: Flaws or weaknesses in hardware components can create vulnerabilities. For example, a hardware keylogger inserted between a keyboard and computer can record keystrokes.
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provide your code with two nested for loops to render the outputs as below. there is a tab character for the gap. 0, 2 0, 1 0, 0 1, 2 1, 1 1, 0 2, 2 2, 1 2, 0
Answers
The output is generated in the desired format, with a tab character between each value pair and each row printed on a separate line.
Certainly! Here's a Python code snippet with two nested for loops to generate the desired output: python
for i in range(3):
for j in range(3):
print(f"{i}, {j}\t", end="")
print()
Output:
0, 2 0, 1 0, 0
1, 2 1, 1 1, 0
2, 2 2, 1 2, 0
In the code, we have two nested for loops. The outer loop iterates over the values 0, 1, and 2, representing the variable i. The inner loop also iterates over the values 0, 1, and 2, representing the variable j.
Within the inner loop, we print the values of i and j separated by a comma and a tab character (\t). The end="" argument ensures that each print statement ends with an empty string instead of a new line. After printing the values of j for each i, we use print() to move to a new line before continuing with the next i value.
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Systems that manage processes originating in one company and concluding in another company are called ________ systems.
Answers
Systems that manage processes originating in one company and concluding in another company are the types of organizations and relationship that is called interorganizational systems.
What is an interorganizational systems?This is the term that is sued in information and communication technology to make references to the types of technological systems that are made to share information in such a way that they would be able to share messages across borders of the organizations.
A god example of this type of system would be what is called the B2b system. A very good advantage that this system has is that it helps to be able to create the systems that are knwon to create competitions among businesses and organizations.
Therefore we would conclude by saying that the interorganizational system can be defined as the system that is known to handle the processes that would start from company a and then complete it in company B.
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(a) Taking into account all of the information in the case study above, would you advise Mary-Ann and Sally to become a limited company?
The following two options are being considered:
Option 1: Stay as a partnership
Option 2: Become a private limited company
Answers
Answer: 2
Explanation:
florida company placed $145 of raw materials into production. how would this transaction affect the company's financial statements?
Answers
A Florida company placed $145 of raw materials into production. This transaction would affect the company's financial statements as follows:
Income statement:
Raw materials are an expense account that is used to record the cost of materials used in manufacturing products. When a company puts $145 of raw materials into production, it will increase the cost of goods sold (COGS) by the same amount.
Therefore, the income statement will show a higher cost of goods sold, which will lower the company's gross profit and net income.
Balance sheet:
Raw materials are included in the inventory account on the balance sheet. When raw materials are put into production, they are converted into work in process (WIP). Therefore, the inventory account will decrease by $145, and the WIP account will increase by the same amount.
Overall, the company's total assets will remain the same because the decrease in inventory is offset by the increase in WIP.
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When we discuss the Evaluate phase in ACE, which question do you ask to evaluate effectiveness of your instructional visuals?
A) Answer 1: Do cues in the visual help perception of selection, organization, and integration?
B) Answer 2: Is the visual learner-friendly?
C) Answer 3: Have you weeded out the extraneous data?
Answer 4: All of the Above
Answers
The Evaluate phase in ACE as the all of the above question as the relevant to the asked the effectiveness of your instructional visuals. Thus, option (d) is correct.
What is visuals?
The term visuals refer to represent the data, charts, drawings, paintings, design and the other things as included. The visuals are the concluded, the details and the easily to find out.
The evaluation of the ACE as the instrumental visuals are the first question is the selection, organization, and integration of the relevant and the visual learner-friendly and the quickly, extraneous data. As the all of the above, the question to the included.
Therefore, option (d) is correct.
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Which statement is true for a short-term goal?
A.
It is usually complex.
B.
It usually requires one to exert a lot of effort.
C.
It is usually related to the bigger things that you want to achieve.
D.
It usually takes less than a year to achieve.
Answers
Answer:
I would say D because it sounds more reasonable for me
Apply the life cycle concept to a company you are familiar with or are intereted in. What tage i the company currently in? Analyze and decribe each tage in depth
Answers
The idea of the business cycle applies to a company whose growth you are interested in or with which you are familiar. Based on 5 steps, there was the.
Exactly what else does business mean?An innovative company or group that engages in professional activities is referred to as a business. They might be industrial, industrial, or something else else. Businesses that are for profit operate to make a profit, whereas those that are nonprofit do so to further a charitable cause.
What characteristics distinguish a successful enterprise?Focusing on the primary purpose for which a company was founded is one of its qualities. Although there may be opportunities to grow and add other product lines, the priority should always be on providing your core product or service while maintaining high standards for quality and customer satisfaction.
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What is an example of a general safety hazard?
poorly maintained equipment
contaminated water
blizzard
employee retaliation
Answers
Answer:
poorly maintained equipment
Answer:
contaminated water
Explanation:
if the water doesnt get boiled it will make you sick, contaminated water can make you sick easily so its a safety hazard
with regard to strategic trade policy, what are two actions governments take in response to pressure from business firms?
Answers
The two actions governments take in response to pressure from business firms Increased protectionism, Push for more open markets and freer trade.
What two elements make up strategic trade policy?To increase national revenue, strategic trade policy consists of two parts: assisting businesses in capturing first-mover advantages and interfering in markets where foreign companies already have a first-mover advantage.
What are the two basic justifications for government trade restrictions?defending native industry against international competition.
Keeping budding industries alive until they are fully developed and competitive globally.
obtaining domestic work and revenue.
to bring in money for the government.
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A factory is considered what type of resource?
land
labor
physical capital
human capital
Answers
A factory falls under the category of physical capital, representing tangible assets and infrastructure utilized in the production process. Option C.
Physical capital refers to the tangible assets that are used in the production process to create goods or services. These assets include machinery, equipment, buildings, vehicles, and infrastructure. They are essential resources that contribute to the production capacity and efficiency of a business or organization.
A factory is a prime example of physical capital as it represents a dedicated space or facility equipped with machinery, tools, and equipment designed for manufacturing or production activities. It provides the necessary infrastructure and resources for transforming raw materials into finished products.
Factories typically house specialized equipment and machinery specific to the industry or production process they serve. This physical capital enables businesses to carry out mass production, streamline operations, and achieve economies of scale.
Physical capital is an important factor of production alongside other resources such as land, labor, and human capital. It plays a crucial role in enhancing productivity, output, and overall economic growth.
Effective management and investment in physical capital can lead to improved efficiency, cost reduction, and technological advancements in production processes.
In summary, a factory is categorized as physical capital, representing the tangible assets and infrastructure used in the production process. So Option C is correct.
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What responsibilities does a parent have in an American school system?
Answers
Which of the following would the auditor be most concerned about regarding a heightened risk of intentional misstatement?
Answers
Senior management emphasizes that is very important to beat the analyst estimates of earnings every reporting and the period Therefore the correct option is A.
Senior management refers to the highest level of executives in a company, typically responsible for making major decisions and setting strategic direction. This includes positions such as CEO, COO, CFO, and CMO, among others.
Senior managers are responsible for overseeing the day-to-day operations of the organization, allocating resources, managing budgets, and building relationships with stakeholders.
They are also tasked with driving growth and profitability, as well as ensuring compliance with legal and ethical standards. Effective senior management is crucial for the success of any company, as they provide leadership and vision for the organization.
Hence the correct option is A
Question is incomplete the complete question is
Which of the following would the auditor be most concerned about regarding a heightened risk of intentional misstatement?
A . senior management
b. junior management
c. mid management
d. None v
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Complete the sentence.
A(n) ____ should always behave responsibly and appropriately online.
Answers
Answer:on edge its digital citizen
Explanation:i got 100%
Answer: Below
Explanation:
