Answer:
Increase profits by $40,000
Explanation:
The computation of the net impact of stopping production of love seats is shown below:
= Contribution margin × increased percentage - segment margin
= $900,000 × 10% - $50,000
= $90,000 - $50,000
= $40,000
Since the amount comes in positive which means that the profits is increased by $40,000
All other information which is given is not relevant. Hence, ignored it
Answer:
Blue Company
Consolidation of Parent & Subsidiary Companies :
1. c. $86,000
2. b. $47,000
3. d. $39,000
Explanation:
In preparing a consolidated income statement, Blue Company with controlling interest of 60% will eliminate intercompany transactions, sales, purchases, inventory, and profits. This is because such transactions are assumed to be within the same consolidated entity.
Only such transactions involving outsiders are taken into consideration for the purpose of determining profits and arriving at the financial position of the consolidated group.
Answer:
True
Explanation:
An organization that makes use of multisegment marketing approach is undoubtedly a big company that have established name for itself. This means that, the organization or company is well known and that it is an household name in the industry. Therefore, such company has the capacity of using multisegment marketing approach.
But a small company will only make use of one pricing method, this is to attract people to its products. And avoid competing with the established organizations. So, in the process, creating name for itself.
Answer:
the rate of return on Karen investment is 10%
Explanation:
Given that
Bought price = P = $78500
Sale price = S =$850,000
Time priod = n = 25 years (1980 to 2005)
Based on the above information
The Rate of return is
= (S ÷ P)^(1 ÷ n) - 1
= ($850,000 ÷ $78,500)^(1 ÷ 25) - 1
= 0.099973
= 10.00%
hence, the rate of return on Karen investment is 10%
We simply applied the above formula
Price expectations about the future is another determinant of demand.
Explanation:
For example, An increase in the expected future price of electric cars may increase current demand for electric cars.
Individuals would naturally want to stock up more of electric cars in anticipation of an increase in their prices.
