The following information relates to next year's projected operating results of the Children's Division of Grunge Clothing Corporation:

Contribution margin.... 200,000
Fixed Expense.... 500,000
Net operating loss..... (300,000)

If Children's Division is dropped, half of the fixed costs above can be eliminated. What will be the effect on Grunge's profit next year if Children's Division is dropped instead of being kept?

a. 50,000 increase
b. 250,000 increase
c. 250,000 decrease
d. 550,000 increase

Answers

Answer 1

Answer:

a. 50,000 increase

Explanation:

the company will save money by discontinuing this division since currently it is losing $300,000, but if it discontinues this division, it will only lose $250,000 which means that operating income will increase by $50,000

differential analysis:

                                      option 1                     option 2                 differential

                                      continue operating  discontinue oper.  amount

contribution margin      $200,000                 $0                          ($200,000)

fixed expenses            ($500,000)                ($250,000)             $250,000

net change                   ($300,000)                ($250,000)              $50,000


Related Questions

You and two partners start a company. However, your partners play no role in running the company. You spend all your time managing the business. The time that you could have spent working for someone else and earning wages instead of running the business is your:

Answers

Answer:

opportunity cost I guess

When intra-entity transferred land is subsequently sold to an outside entity, any remaining deferred gain is recognized in the period of the sale.

a. True
b. False

Answers

Answer:

a. True

Explanation:

In the case when the land is transferred while intra entity and sold to the outside entity so any left deferred gain would be recorded in the sale period

and the same is to reported on the consolidated financial statements

Therefore the given statement is true

Hence, the correct option is a.

Thus, the same is to be considered

Organizational behavior knowledge

Answers

Organizational behaviour (OB) is defined as the systematic study and application of knowledge about how individuals and groups act within the organizations where they work.

Four anchors
This includes team dynamics, communication, power, organizational politics, conflict, and leadership.

upstate bank is offering long-term certificates of deposit with a face value of $1000. bank customers can buy thece cds today for $67,000 and will receive the

Answers

Answer: 2.70%

Explanation:

Proper question is;

Upstate bank is offering long-term certificates of deposit with a face value of $100,000. Bank customers can buy these CDs today for $67,000 and will receive the $100,000 in 15 years. What interest rate is the bank paying on these CDs.

The formula to calculate rate is;

= (Future Value / Present Value) ^ 1/15 - 1

= (100,000 / 67,000) ^ 1/15 - 1

= 0.0270581026212

= 2.70%

The marginal tax rate for a lump-sum tax a. is always positive. b. is zero. c. can take on any value but must be greater than the average tax rate. d. is always negative.

Answers

Answer:

b. is zero.

Explanation:

Taxation can be defined as the involuntary or compulsory fees levied on individuals or business entities by the government to generate revenues used for funding public institutions and activities.

There are three (3) types of taxation used by the government, these are;

1. Progressive taxation: it involves charging individuals having higher incomes a higher percentage of their total income.

For instance, Citizen A pays 20% on $50,000 and Citizen B pays 15% on $36.000.

2. Proportional taxation: it involves charging both lower and higher income earners equally in proportion to their income.

For instance, Citizen A pays 10% on $50,000 and Citizen B pays 10% on $36,000.

3. Regressive taxation: it involves charging individuals with low incomes a higher percentage of their total income and vice-versa.

For instance, Citizen A pays 15% on $50,000 and Citizen B pays 20% on $36,000.

The marginal tax rate for a lump-sum tax is zero because an additional amount of money would not change it.

Any help the question is about Insurance

Answers

Answer:

were is the extract?

i can not help you if i do not have the extract to read sorry.

Explanation:

Lottery: Todd actually took his winnings as a one-time lump-sum payout of $30 million instead of the annual installments. What discount factor did the state of California use the arrive at $30 million as the present value?

Answers

Answer:

The question is incomplete, so I looked for a similar one that can be used as an example (see attached image):

In this example, you are offered 30 annual payments, starting today, = $85,000,000 / 30 = $2,833,333 per year

in order to determine the present value of this annuity due:

present value = annual payment x PV annuity due factor

present value = $2,833,333 x 12.81039 (PV annuity due factor, 30 period, 7.5%) = $36,296,100

if you were given the present value and the annual payment, then you would need to determine the PV annuity factor:

PV annuity factor = present value / annual payment = $36,296,100 / $2,833,333 = 12.81039

to determine the interest rate we must use the following formula:

PV annuity due = ($1/i) · (1 + i) · {1 - [1 / (1 + i)ⁿ]}

12.81039 = ($1/i) · (1 + i) · {1 - [1 / (1 + i)³⁰]}

another way to figure it out is using annuity tables or calculators:

you know the annuity due factor = 12.81039 and the number of periods = 30, so you look down to see which interest rate matches them.

Holt Enterprises recently paid a dividend, D0, of $3.50. It expects to have nonconstant growth of 12% for 2 years followed by a constant rate of 6% thereafter. The firm's required return is 18%. How far away is the horizon date

Answers

Answer:

At the end of the year 2

Explanation:

In order to compute the share of Holt enterprises, we  require dividends in years 1 and 2 dividends which are shown thus:

Year 1 dividend=$3.50*(1+12%)^1=$ 3.92  

Year 2 dividend=$3.50*(1+12%)^2=$4.3904

Horizon value at the end of year 2=year 2 dividend *(1+constant dividend growth rate)/(required return-constant dividend growth rate)

Horizon value is computed at the end of year 2 since it needs to follow the last dividend paid immediately

Barbara Jones is interested in buying a five-year zero coupon bond with a face value of $1,000. She understands that the market interest rate for similar investments is 10.3 percent. Assume annual coupon payments. What is the current value of this bond? (Round answer to 2 decimal places, e.g. 15.25.)

Answers

Answer:

Zero-cupon bond= $612.52

Explanation:

Giving the following information:

Face value= $1,000

Number of periods= 5 years

Interest rate= 10.3% = 0.103

To calculate the price of the bond, we need to use the following formula:

Zero-cupon bond= [face value/(1+i)^n]

Zero-cupon bond= [1,000 / (1.103^5)]

Zero-cupon bond= $612.52

Fuseina has GH¢40,000.00 to invest. She decided to put part of the money in an account paying 4% interest and the remainder into a stock paying 6%interest. Her financial advisor tells her that the total annual income from these investments should be GH¢2040.00. How much should she invest at each rate?​

Answers

Answer:

GH¢18,000 in the account that pays 4%

GH¢22,000 in stock

Explanation:

Let X represents the account that pays a 4% interest rate

Let Y represent the stock that pays a 6% interest rate

Total amount invested=40,000

X+Y=40,000 equation 1

Interest earned on X=X*4%=0.04X

Interest earned on Y=Y*6%=0.06Y

Total interest =2040

0.04X+0.06Y=2040 equation 2

Multiply equation 1 by 0.04

0.04X+0.04Y=(40,000*0.04)

0.04X+0.04Y=1600 equation 3

equation 2- equation 3

0.04X+0.06Y=2040

0.04X+0.04Y=1600

0.02Y=440

Y=440/0.02=22000

substitute 22000  for Y in equation 1

X+22000=40000

X=40000-22000=18000

Briefly, explain how a company can achieve lower production costs and increase productivity by improving the quality of its products and services?

Answers

Answer:

Explanation:

Increasing the quality of the products can lower production costs and increase productivity all because the product will have fewer errors and failures which ultimately saves the company from repair costs, refunds, and other similar costs that may arise from such a failure. This also applies to the costs associated with dealing with an angry customer and trying to maintain that customer such as offering discounts. In simple terms, the higher the quality the less production problems that need to be fixed which speeds up productivity and lowers costs by not having to reproduce the same product.

A company's income before interest expense and income taxes is $575,000 and its interest expense is $145,000. Its times interest earned ratio is:__________.a. 0.25 b. 2.73 c. 0.99 d. 3.72

Answers

Answer:

3.96

Explanation:

A company's Time Interest Earned ratio shows us its ability to pay its debts.

The income before expenses is given as: $575000

The interest expenses = $145000

The question wants us to find time interest earned ratio. We get this by:

Company's initial income/interest expenses

= $575,000/$145,000

= 3.96

This is the correct answer to the question. The right answer was not listed in the options.

Based on your personal experience, cite three service businesses and three product businesses that gave you an impressive experience because employees were properly trained. What made you say employees were really trained?

Answers

Explanation:

Product companies: Apple, Adidas and Sephora

Service companies: Dell technical support, Disneyland and Hilton Hotels.

In all these products and services companies mentioned, I had a positive experience in relation to the attendance of the employees, this shows that the employees were really trained. An interesting example is Disneyland, where the slogan "The most magical place on earth" really makes sense, as all employees were trained to provide an experience for the visitor, as they are characterized as famous characters in the film and have a very playful way to create an atmosphere of magic. In other companies, the experience, although different, can be described as similar to Disney, because the main challenge of training employees is that they are able to provide the customer with an effective alignment between the company's purpose and the services offered, so it is essential that the employee is trained to provide all the values ​​that the company demonstrates to the customer, being always solicitous, cordial, having property to answer questions and explain about the product or service, etc.

The three service businesses that gave me an impressive experience are:

HP technical supportDisneyland Ashmeet Hotels.

The three product businesses that gave me an impressive experience are:

AppleNikeAdidas

The reason why i said their employees were well trained are:

They were patient to listen to my complaintTheir services were prompt and efficientThey were so courteous and respectful

According to the given question, we are asked to show and list the service and product businesses who gave me an impressive experience and to give the reasons.

As a result of this, we can see that the staff of the aforementioned businesses were very civil, eager to listen and efficient in their response to queries and instructions because they were so eager to please the customer.

Read more here:

https://brainly.com/question/18285413

g On January 1, a machine with a useful life of four years and a salvage value of $13000 was purchased for $77000. What is the depreciation expense for year 2 under straight-line depreciation

Answers

Answer:

Annual depreciation= $16,000

Explanation:

Giving the following information:

Purchase price= $77,000

Useful life= 4 years

Salvage value= $13,000

Under the straight-line method, the depreciation expense remains constant during the life of the asset.

To calculate the depreciation expense, we need to use the following formula:

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (77,000 - 13,000) / 4

Annual depreciation= $16,000

If you are strong at ___________, your employees are likely to think that it is right to follow your lead.

a. political tactics
b. impression management
c. influence management
d. coalition building
e. consultation

Answers

Answer:

b. impression management

Explanation:

Impression management is a management in which you are strong and your employees thought that it is right to follow up your lead. It implies the attempts that made by a person or a group due to which it the perception of the people could be influence related to a person , object or an event

Hence, the option b is correct

And, the same is to be considered

Assume that Georgia has exports of $ 50 billion, imports of $45 billion, and GDP of $200 billion. What is Georgia's level of trade

Answers

Answer: 25%

Explanation:

Level of trade is simply calculated as the percentage of export of a particular country to its share of the gross domestic product.

Based on the scenario given in the question, the level of trade will be:

= (Exports / GDP) × 100

= 50/200 × 100.

= 1/4 × 100

= 25%

Sales mix is the relative percentage in which a company sells its multiple products. the trend of sales over recent periods. a measure of leverage used by

Answers

Answer:

is relative percentage in which a company sells its multiple products.

Explanation:

Sales mix is method use in calculating thee each unit/proportion of goods that are sale in the company relatively to the total sales. Whenever there is a change in the sales mix of a firm, then the profit change, sales mix helps to know which particular product sells more than the other one in the company.it should be noted that sales mix is relative percentage in which a company sells its multiple products.

The demand for cooldrink is price elastic if

Answers

Answer:

see below

Explanation:

Elastic demand describes a scenario where a small change in price results in a significant difference in the quantity demanded. The term 'elastic ' suggests a moving or a stretching demand. Goods that have many substitutes have an elastic demand.

A product or service will have an elastic demand when a small price change greatly affects consumption. Customers will still seek alternative cheaper options if the price increases, which causes demand to drop significantly. The demand for cooldrink is price elastic if a small change in price results in demand changing considerably.

Nanometrics, Inc. has a beta of 3.15. If the market return is expected to be 10 percent and the risk-free rate is 3.5 percent, what is Nanometrics required return

Answers

Answer:

23.975%

Explanation:

Calculation for Nanometrics required return

Using this formula

Required return = Risk free rate + (Beta*(Market rate - Risk free rate))

Where,

Risk free rate =3.5%

Beta=3.15%

Market rate =10%

Let plug in the formula

Required return = 3.5% +(3.15*(10%-3.5%)

Required return = 3.5% +(3.15*6.5%)

Required return = 3.5% + 20.475%

Required return = 23.975%

Therefore Nanometrics required return will be 23.975%

A female employee brings effective insight into how the clients have been involved in the change process previously. How do men and women differ in their leadership styles?

Answers

Answer:

This question is incomplete, the options are missing. The options are the following:

a) Women use more participative leadership.

b) Men have higher emotional intelligence.

c) None of these answers are correct.

d) Men are less harsh when they punish their subordinates.

e) Men make fewer decisions on their own.

And the correct answer is the option A: Women use more participative leadership.

Explanation:

To begin with, there is a scientific study that proves that when it comes to terms of leadership the female participants tend to be more participative regarding subjects of decision making process and taking ideas from others and work as a team, like it should be. Meanwhile the male participants tend to be in their majority more centralized when it comes to decide every aspect of what it has to be done. And that is in part because of the personality of each one due to the fact that male tend to be more dominant because of biology reasons then they make decisions without consulting with other while women take the right way and involves every member in order to take the final decision.

A bakery buys flour in 25-pound bags. The bakery uses 1,215 bags a year. Ordering cost is $10 per order. Annual carrying cost is $75 per bag. a. Determine the economic order quantity. b. What is the average number of bags on hand

Answers

Answer: a. 18 ; b. 9

Explanation:

a. Determine the economic order quantity.

The following can be derived from the question:

Annual demand D = 1215 bags

Ordering cost S = $10

Holding cost H = $75

Economic order quantity = ✓2DA/H

= ✓2 × 1215 × 10/75

= 18

b. What is the average number of bags on hand

This will be gotten by dividing the economic order quantity by 2 which will be:

= 18/2

= 9

Restaurant code of ethics

Answers

Answer:

Treat all customers and suppliers honestly, fairly and objectively. ... Provide proper, fair and reasonable service to customers including, but not limited to, after-sales service in accordance with best industry practices. Refrain from discriminatory practices in dealing with our employees, providers and customers.

Stimpson Inc. preferred stock pays a $.50 annual dividend. What is the value of the stock if your required rate of return is 10%

Answers

Answer:

$5.00

Explanation:

Market value can be regarded as the agreed price where both the buyer and seller perform their transaction, i.e the price buyer willing to buy and the seller willing to sell, which is intrinsic

Given

annual dividend= $50

rate of return = 10%

value of the stock = (annual dividend)×(rate of return)

=$50 *0.10

= $5.00

Is Jack in the box better than McDonald's

Answers

Answer:

nope

Explanation:

bc of personal issues with jack in the box

D. J. Masson Inc. recently issued noncallable bonds that mature in 10 years. They have a par value of $1,000 and an annual coupon of 5.5%. If the current market interest rate is 7.0%, at what price should the bonds sell?a. $829.21b. $850.47c. $872.28d. $894.65e. $917.01

Answers

Answer:

Bond Price​= $894.65

Explanation:

Giving the following information:

Face value= $1,000

Number of periods= 10

Cupon= 0.055*1,000= $55

YTM= 0.07

To calculate the price of the bond, we need to use the following formula:

Bond Price​= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]

Bond Price​= 55*{[1 - (1.07^-10)] / 0.07 + [1,000/(1.07^10)

Bond Price​= 386.30 + 508.35

Bond Price​= $894.65

An employee has​ year-to-date earnings of . The​ employee's gross pay for the next pay period is . If the FICAOASDI is ​% and the wage base is ​, how much FICAOASDI tax will be withheld from the​ employee's pay?​ (Answer is rounded to whole​ dollar.)

Answers

Answer:

$192

Explanation:

Calculation for how much FICA-OASDI tax will be withheld from the employee's pay?

FICA-OASDI tax=($117,000-$113,900)*6.2%

FICA-OASDI tax=$3,100*6.2%

FICA-OASDI tax=$192

Therefore how much FICA-OASDI tax will be withheld from the employee's pay is $192

Recently many large commercial and retail banks have been choosing to increase the amount of excess reserves they hold in the Federal Reserve, and this has caused an increase in the money multiplier and the money supply.

a. True
b. False

Answers

Answer:

A. True

Explanation:

Large commercial and retail banks have been choosing to increase the amount of excess reserves they hold in the Federal Reserve, and this has caused an increase in the money multiplier and the money supply.

This is true as an increase in the Federal reserves would lead to increased room for loan and lending facilities which would also help increase the money supply of the populace.

Dawn Swift discovered that twenty years ago, the average tuition for one year at an Ivy League school was $4,500. Today, the average cost is $29,000. What is the growth rate in tuition cost over this 20-year period

Answers

Answer: 9.76%

Explanation:

The cost today of $29,000 is the future value of the cost 20 years ago with the growth rate in question. It can therefore be solved by the future value formula;

29,000 = 4,500 * ( 1 + r/100)²⁰

( 1 + r/100)²⁰ = 29,000/4,500

1 + r/100 = ²⁰√29,000/4,500

1 + r/100 = 1.0976

r = 9.76%

What breif document should always include the six basic story element

Answers

Answer:

Explanation:

.

XYZ Company makes 400 widgets. The variable costs are $38.00 per unit and fixed costs are $32.40 per unit; however, $23.80 in fixed costs per unit is unavoidable. What is the effect on net income if the company instead buys the widgets from an outside supplier for $50.00 per unit?

Answers

Answer:

Decrease in net income by $1,360

Explanation:

First, we need to prepare analysis of costs and savings if the company buys outside.

Please note that the fixed costs per unit are unavoidable and are irrelevant hence ignored in making this decision.

Analysis of costs and savings

Purchase price (400 widgets × $50 per unit) = ($20,000)

Savings:

Variable costs (400 widgets × $38 per unit) = $15,200

Fixed costs (400 widgets × $8.60 per unit) = $3,440

Net income effect

($1,360)

The effect of on net income if the company buys widget from outside is a decrease in net income by $1,360

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