answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
MArishka [77]
2 years ago
8

Soar Incorporated is considering eliminating its mountain bike division, which reported an operating loss for the recent year of

$3,000. The division sales for the year were $1,050,000 and the variable costs were $860,000. The fixed costs of the division were $193,000. If the mountain bike division is dropped, 30% of the fixed costs allocated to that division could be eliminated. The impact on operating income for eliminating this business segment would be:
Business
1 answer:
ludmilkaskok [199]2 years ago
8 0

Answer:

Decrease by $132,100

Explanation:

Computation of the given data are as follow:-

We can calculate the  Operating Income by using following formula:-

Fixed Cost = Fixed Cost * Dropped Rate

= $193,000 * 30/100

= $57,900

So, Operating Income = Sales - Variable Cost - Fixed Cost  

= $,1050,000 - $860,000 - $57,900

= $132,100

According to the Analysis, the operating income will be decrease by $132,100 if the business segment is eliminated.

You might be interested in
Overextended Debtor. Dennis purchased a big screen television from ABC Electronics and financed the purchase through ABC Electro
kap26 [50]

Answer: (F) Collateral

Explanation:

  According to the given question, Collateral is referred to proper designation under UCC in which the Dennis refused to return television to the ABC electronics company.

The term Collateral is referring as assets such as television that is typically used to secure the loan as it provides a low internet rate and due to collateral they also makes the duration of the loan length.

Television is represented as collateral so ABC company cannot perfect its interest so due to this reason Dennis refuses to return television to the company. Collateral is known as the secured loan and it is used by the following ways:

  • Purchasing personal assets
  • Vehicles
  • Investment purpose
  • Paychecks

  Therefore, Option (F) is correct answer.

7 0
1 year ago
This is section 3.8 problem 30: a motel owner observes that when a room is priced at $60 per day, all 80 rooms of the motel are
inna [77]

Answer:

see explanations

Explanation:

First, for 80 room charged at $60 per room ,all rooms are occupied

Let the demand function, expressed by p , the price in dollars charged for each room per day, as a function of x as,

p(x)=$60x ------------where x in the number of rooms

When the price per room is increased by $3, the demand function will be;

p(x)=$63x

Maintenance per room after price increase will be;

p(x)=$16x

This means: $63x -$60x=$16x

3*80 p(x)=16*80

p(x)=(16*80)/(3*80) =5.33

Due to price increase the number of rooms occupied reduced by 5 rooms to 75 rooms. Because of unoccupied rooms bringing no revenue the maintenance cost increased. The demand for room decreased.

6 0
1 year ago
Who determines who is authorized for access to areas containing sensitive devices/data/system
Alex Ar [27]

Answer:

Im thinking it is the FBI

Explanation: MY guess would point to the FBI bc they are the ones who come in on cyber related crimes. so i would say A is the correct answer

6 0
2 years ago
Read 2 more answers
Suppose that, for every 1-percentage-point decline of the discount rate, commercial banks collectively borrow an additional $2 b
almond37 [142]

Explanation:

Decline by $0.5 billion and the money supply will decline by $2.5 billion.

4 0
1 year ago
Each of two stocks, C and D, are expected to pay a dividend of $3 in the upcoming year. The expected growth rate of dividends is
Stels [109]

Answer:

Intrinsic value of Stock C is 300

Explanation:

given data

expected pay dividend = $3

growth rate of dividends = 9%

stock C require a rate of return = 10%

stock D require a rate of return = 13%

solution

we get here intrinsic value by the DDM method

intrinsic value = Upcoming Dividend ÷ ( Required rate of return - Growth rate of stock )  .................1

intrinsic value = \frac{3}{(0.10-0.09)}    

intrinsic value = \frac{3}{0.01}  

intrinsic value = 300

so intrinsic value of Stock C is 300

8 0
2 years ago
Other questions:
  • The document that lists the steps of the budget process is the
    12·1 answer
  • Type the correct answer in the box. Spell all words correctly. Henry works at a newspaper agency. Here, he works with the editor
    8·1 answer
  • Four years ago, Saul invested $500. Three years ago, Trek invested $600. Today, these two investments are each worth $800. Assum
    8·1 answer
  • Dream Threads Company sells hand-sewn shirts for $40 per shirt. It incurs monthly fixed costs of $7000. The contribution margin
    11·1 answer
  • Based on the following data, estimate the cost of the ending merchandise inventory:
    13·1 answer
  • Brief Exercise 5-8 Cullumber Company has a unit selling price of $630, variable costs per unit of $300, and fixed costs of $327,
    8·1 answer
  • A change in company policy now means that employees have to gather a lot more information from a customer before dealing with a
    14·1 answer
  • A perpetuity will pay $1000 per year, starting five years after the perpetuity is purchased. What is the present value (PV) of t
    8·1 answer
  • Goodwin Technologies, a relatively young company, has been wildly successful but has yet to pay a dividend. An analyst forecasts
    15·1 answer
  • Explain the hipp of the primary sources below source: letter written by john rolfe
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!