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Valentin [98]
2 years ago
7

Product U23N has been considered a drag on profits at Jinkerson Corporation for some time and management is considering disconti

nuing the product altogether. Data from the company’s budget for the upcoming year appear below:Sales.................................................................$730,000Variable expenses.............................................$350,000Fixed manufacturing expenses.........................$234,000Fixed selling and administrative expenses........$161,000In the company's accounting system all fixed expenses of the company are fully allocated to products. Further investigation has revealed that $144,000 of the fixed manufacturing expenses and $93,000 of the fixed selling and administrative expenses are avoidable if product U23N is discontinued. The financial advantage (disadvantage) for the company of eliminating this product for the upcoming year would be:
Business
1 answer:
STALIN [3.7K]2 years ago
6 0

Answer:

                                 Product U23N

                                                                                          $

        Sales                                                                     730,000

Less: Variable cost                                                        350,000

         Contribution                                                          380,000

Less: Avoidable fixed manufacturing expenses           144,000

         Avoidable fixed selling and administrative cost  <u>93,000</u>

         Net contribution                                                    <u> 143,000</u>

Product U23N should not be discontinued because it has a positive contribution. If the company discontinued the product, the total profit of the company reduces by $143,000.

Explanation:

In this case, we need to determine the net contribution of the product.  Net contribution is the excess of sales over variable cost and avoidable fixed cost. Product U23N should not be discontinued because it has a positive net contribution. If the product is deleted, there will be a reduction in total profit of the company by $143,000.

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bixtya [17]

Answer:

The correct answer is the option A: failure to complete a business plan and failure to get funding.

Explanation:

To begin with, if an entrepreneur failures to complete a business plan and to get funding then the most probable thing to happen is that his business will be untenable from the beginning due to the fact that if the person do not possesses money and a plan to put his ideas in action he will never achieve his primary goals, that is, obtaining profits at long term. Therefore that if there is no business plan in which the company must focus and there is no money to carry out that strategy then the business model is doomed.

6 0
1 year ago
Genovese Contracting, Inc., agrees to build a warehouse for Hawthorne Wholesale Distributors. When Genovese runs into the types
Andrej [43]

Answer:

4: not enforce it.​

Explanation:

It may be stated that the court does not exercise this additional agreement in this particular case based on the information provided in the question. This is due to the fact that it is not directly clear for payment. Because they make extra payments for the Genovey contract, they try to overcome the odds, and if these limitations are beyond their control they cannot do so.

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2 years ago
Chuck Diesel Burger is a food truck in Houston, Texas. Imagine that Chuck Diesel Burger’s minimum average total cost (ATC) is $3
Trava [24]

Answer:

The answer is: $3.00

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In order for Chuck Diesel Burger to make a profit it must sell its product at ˃$3.75.

If it sells its product at $3.75 it will break even (costs = revenue).

If its price is <3.75 but ˃$2.50 it will lose money but still produce, since its revenue is ˃ than its variable cost.

Any price ≤$2.50 would make it impossible for Chuck Diesel Burger to continue production since its revenue is < variable production costs.

5 0
2 years ago
Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 34
Tpy6a [65]

Answer:

$69020

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Direct labor = 6*7000 =              (42000)

Variable manufacturing =           (21000)     (3*7000)

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Total contribution =                      83020

Additional cost of machine       (14,000)

Incremental profit                        69,020          

5 0
2 years ago
Suppose you receive at the end of each year for the next three years. a. If the interest rate is ​, what is the present value of
Furkat [3]

Answer:

the question is missing the numbers, so I looked for a similar question:

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b) FV = $257.71 x (1 + 8%)³ = $324.64

c) FV = ($100 x 1.08²) + ($100 x 1.08) + $100 = $324.64

it is exactly the same as the answer for (b)

5 0
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