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2 years ago

A segment has the following data:

Business

1 answer:

ankoles [38]2 years ago

4 0

Answer:

Net income will decrease by $400,000

Explanation:

Currently this business unit is generating a net loss of $150,000:

total revenue - variable expenses - fixed costs = $700,000 - $300,000 - $550,000 = -$150,000

if the unit is eliminated, then the revenue and variable expenses will be gone, but the fixed costs will be allocated to other business units. So instead of losing $150,000, the company will lose $550,000. The company's net income will decrease by $550,000 - $150,000 = $400,000

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Break-Even Sales Under Present and Proposed Conditions Portmann Company, operating at full capacity, sold 1,000,000 units at a p

Ne4ueva [31]

Answer:

1. Variable Fixed

Cost of goods sold 70,000,000 30,000,000

Selling Expenses 12,000,000 4,000,000

Administrative Exp. 6,000,000 6,000,000

Total 88,000,000 40,000,000

Note:

Cost of goods sold 70% 30% on 10,000,000 for variable and Fixed respectively

Selling expenses 75% 25% on $16,000,000 for variable and Fixed respectively

Administrative expenses 50% 50% on $12,000,000 for variable and Fixed respectively

2. Unit Variable cost = Total variable cost / Units produced

Total Variable cost 88,000,000

Unit produced 1,000,000

Unit variable cost  88 

Unit Contribution margin = Selling Price - Variable cost per unit

Selling Price $188

- Variable cost per unit $88

Unit Contribution margin $100

3. Break even Point (Units) = Fixed cost / Contribution margin per unit

Fixed cost 40,000,000

Contribution margin per Unit 100

Break even Point (Units) 400,000

4. Break even point (units) = Fixed cost / Contribution margin per unit

Fixed cost 40,000,000

Increased Fixed cost 5,000,000

Total New fixed cost 45,000,000

Contribution margin per unit 100

Break even point (units) 450,000

5. Determined sales units = (New fixed cost + Desired Income) / Contribution margin

New Fixed Cost 45,000,000

Desired Income 60,000,000

105,000,000

Contribution margin 100

per unit

Determined sales units 1,050,000

6. Maximum Income from operation = Total New sales - Total New variable cost - Total Fixed cost

Sales 188,000,000

Increased sales 11,280,000

Total New sales 199,289,000

Variable cost 88,000,000

New Variable cost 5,280,000

Total New Variable cost 93,280,000

Total New Fixed cost 45,000,000

Maximum Income from 61,000,000

operation

Number of units = Increase in sales / Price per unit

New variable cost = Number of units * Unit variable cost

Increased sales 11,280,000

Price per unit 188

Number of units 60,000

Unit variable cost x 88.00

New Variable cost 5,280,000

7. Net income = Sales - Variable cost - New fixed cost

Sales 188,000,000

Less: Variable cost 88,000,000

Less: New fixed cost 45,000,000

Net Income 55,000,000

8. Option b. In favour of the proposal because of the possibility of increasing income from operation.

4 0

2 years ago

Gaston knows he cannot be physically present at his new restaurant every hour it is? open, so he has decided to share management

Dmitriy789 [7]

Answer: General partnership.

Explanation:

Gaston has formed a general partnership with the two other business owners.

A general partnership is a business set up where two or more individuals own a business, take part in it's decision taking process and share profits equally.

6 0

2 years ago

A consumer would pay an extra if they used the rent to own program to buy the computer, rather than using cash. For all of the i

Vlada [557]

Answer: If you want to purchase any kind of goods and services like furniture, appliances, electronic gadgets, and other such items but you do not have enough money or cash or credit to purchase it, then the rent to own becomes your lender of last resort.

They are the business where they collect weekly or monthly payments of the product and until the cost of the item is not covered and then the items come in the buyer’s possession after the payment is made in full.

7 0

2 years ago

Read 2 more answers

Joe Beary wants to attend Riverside College. Eight years from today he will need $50,000. If Joe's bank pays 6% interest compoun

dexar [7]

Answer:

$31,158

Explanation:

Use the formula for compound interest, with semiannual compound interest rate.

$Future\text{ }Value=Deposit\times (1+APR/n)^{(n\times t)}$

For semiannual compound interest the number of periods, n, in a year is 2.

APR is the annual percentage rate, which is 6% in this problem. So, APR is 6%/2 = 0.06/2 = 0.03

Then, substitute in the formula with:

Future value: $50,000
APR/n = 0.03
n × t = 2 × 8 = 16

$\$50,000=Deposit\times (1+0.03)^{16}\\\\\\Deposit=\$50,000/(1.03)^{16}=\$31,158.35$

Round to the nearest dollar: $31,158.

6 0

2 years ago

Primary value chain activities that involve the effective layout of receiving dock operations (inbound logistics) and support va

AlekseyPX

Primary value chain activities that involve the effective layout of receiving dock operations (inbound logistics) and support value chain activities that include expertise in process engineering (technology development) characterize overall cost leadership.

<h3>Explanation:</h3>

When the cost associated with the manufacturing of any products is ultimately very low then it refers to the Cost leadership. When a company adopts very low cost of production of any products when compared with the competitors then it shows that the company has achieved the competitive advantage.

This makes the company to sell the product with cheaper cost in the market. Some of the examples include Wal-Mart, Mc-De. Thus cost leadership has the ability in making and effective layout for receiving dock operations and also in supporting the value chain activities.

8 0

2 years ago