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Sholpan [36]
2 years ago
9

Gion Company is considering eliminating its windows division, which reported an operating loss for the recent year of $105,000.

Division sales for the year were $1,110,000 and its variable costs were $975,000. The fixed costs of the division were $220,000. If the windows division is dropped, 65% of the fixed costs allocated to it could be eliminated. The impact on Gion’s operating income from eliminating this business segment would be:
Business
1 answer:
fgiga [73]2 years ago
6 0

Answer:

$8,000 increase

Explanation:

The computation of the impact on the operating income is shown below:

= Variable cost + fixed cost - sales revenue

= $975,000 + $143,000 - $1,110,000

= $1,118,000 - $1,110,000

= $8,000 increase

The fixed cost would be

= Fixed cost × eliminated percentage

= $220,000 × 65%

= $143,000

Simply we deduct the total cost from the sales revenue so that the impact can come.

All other information which is given is not relevant. Hence, ignored it

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Shoe manufacturers are not going to buy much more leather if the price of leather falls, nor will they buy much less leather if
IgorC [24]

Answer:

A) inelastic demand

Explanation:

Demand is inelastic if a change in price has no effect on quantity demanded.

Changes in price has no effect on quantity of leather demanded. Therefore, the demand for leather is inelastic.

Direct purchasing is buying raw materials used in the production process.

Straight rebuy is purchasing similar goods from the same supplier under similar conditions.

Modified rebuy is purchasing similar goods either from a different supplier or in a different condition.

4 0
2 years ago
In addition to the new designer, Burberry also stepped up its involvement in social media, relationships with style magazines an
AlekseyPX

Letter D is correct! Increasing customer retention and reducing customer churn.

Relationship marketing is a set of actions that a company uses to strengthen its relationship with the customer, in order to retain and retain them. The addition of Burberry has increased its involvement in social media with the goal of staying closer to its customers and offering benefits such as collaboration with a famous actress. This strategy strengthens the customer-brand relationship by translating the brand's interest in meeting its customer's needs and wants and thus strengthening brand recognition in the marketplace.

7 0
2 years ago
Walter Industries’ current ratio is 0.5. Considered alone, which of the following actions would increase the company’s current r
MissTica

Answer:

a. Borrow using short-term notes payable and use the cash to increase inventories.

Explanation:

The formula to compute the current ratio is shown below:

Current ratio = Total Current assets ÷ total current liabilities  

where,

The current assets = Cash and cash equivalents + Short-term investments + Accounts and notes receivable + Inventories + Prepaid expenses and other current assets

And, current liabilities would be

= Short-term obligations + Accounts payable

If the current ratio is 0.5 which means that the current asset is 1 and the current liabilities are 2 so the most appropriate option is a.

4 0
2 years ago
Various financial data for SunPath Manufacturing for 2019 and 2020 follow. 2019 2020 Output: Sales $ 300,000 $ 330,000 Inputs: L
erik [133]

Answer:

22.20%

Explanation:

Energy Productivity Ratio 2019 = 300,000 / 10,000 = 30

Energy Productivity Ratio 2020 = 330,000 / 9,000 = 36.66

The percentage change = (36.66-30)/30 * 100

The percentage change = 0.222 * 100

The percentage change = 22.20%

So, the percentage change in the energy partial productivity measure for SunPath between 2019 and 2020 is 22.20%

3 0
2 years ago
Donald owns a two-family home. He rents out the first floor and resides on the second floor. The following expenses attributable
ElenaW [278]

Answer:

900 real estate taxes

600 mortgage interest

500 utilities

300 repairs

0 painting

1000 depreciation

= 3300

Answer: $3,300

Explanation:

3 0
2 years ago
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