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2 years ago

Giant Company has three products, A, B, and C. The following information is available:

Business

1 answer:

myrzilka [38]2 years ago

7 0

Answer:

$24,000

Explanation:

Product A Product B Product C

sales 70,000 97000

Variable cost 37000 51000

Contribution margin 33000 46000

Avoidable cost 10,000 20000

Unavoidable cost 7000 12000 9400

Operating income 16000 14000

Total operating income if product C is dropped is (16000+14000 +3400-9400)

=$24000

Please note that Giant company with still incur the unavoidable cost even if the product is dropped. This is assumed to be a portion of the fixed overhead expenses allocated to the product in the course of normal operation.However , the loss made of 3400 will be avoided as well

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Food For Less (FFL), a grocery store, is considering offering one hour photo developing in their store. The firm expects that sa

Alexeev081 [22]

Answer:

D.- 90,000 incremental sales revenues is closest to 70,000

Explanation:

the revenue for his new machine is 150,000 However, the revenues on his overnight film processing will decrease by 60%

Overnight film processing decreases:

100,000 x 60% = 60000 decrease in revenue

Net Effect: 150,000 - 60,00 = 90,000

Sales will increase by 90,000 Is important to notice we are asked for which is closest. Not the exact answer. We can conclude from the options that 70,000 is the closest option.

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2 years ago

In which of the following situations would a delegation of contractual duties be allowed? Multiple Choice A painter hired to pai

Trava [24]

Answer:

A painter hired to paint your home.

Explanation:

Delegation of contractual duty occurs when the individual that is supposed to perform a task transfers the responsibility of performing the task to another person.

For example if someone is supposed to paint a house but he has other engagements. He can delegate to another painter to perform the painting.

Delegation does not transfer contractual rights as the original person still collects payment for performance of the task.

Usually delegation can occur for tasks that do not require special skill and can be performed by anyone.

In the other scenarios special skill is required so delegation will not be usually allowed.

8 0

2 years ago

Companies HD and LD have the same tax rate, sales, total assets, and basic earning power.

CaHeK987 [17]

Answer:

e. Company HD has a lower times interest earned (TIE) ratio.

Explanation:

We know that both companies have the same EBIT, because both have the same Basic Earning Power, which is calculated by dividing EBIT by Total Assets.

Then if company HD has a higher debt ratio and higher interest expenses, it means that the Times Interest Ratio in HD company it's lower than LD company, the Times Interest Ratio , it's calculated by dividing EBIT/Interest Expenses, at the same EBIT, but higher interest expenses on HD company, it means a lower Times Interest Ratio to this company.

3 0

2 years ago

On February 1, 2021, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of

leva [86]

Answer:

1. 2021 2022 2023

revenue 2912973 3399745 2197282

costs 2170000 2670000 3970000

gross profit 742973 729745 -1772718

2a. Debit Contract account 2912973, Credit revenue 2912973

Debit Bridge in progress 2170000 credit various accounts 2170000

Debit Accounts Receivable 2670000, Billing on CIP 2670000

Debit Bank 2420000, credit Accounts receivables 2420000

2b. Debit Contract account 3399745, Credit Revenue 3399745

debit work in progress 2670000, credit Various accounts

debit Accounts receivables 2920000, Billing on CIP 2920000

Debit bank 2645000, credit accounts receivables 2645000

3a. BALANCE SHEET 2021

current assets

accounts receivables 250000

Liabilities

billing 2670000

3b. current Assets

Accounts receivables 275000

Liabilities

Billing 2920000

Explanation:

percentage of completion = cost incurred for start to date/ total estimated costs

percentation of completion

2021 2022 2023

34.23% 74.18% 100

Revenue to be recognised = total revenue * percentage completed

current period revenue = revenue to be recognise - prior revenue

4 0

2 years ago

Swiss Clothing Store had a balance in the Accounts Receivable account of $820,000 at the beginning of the year and a balance of

salantis [7]

Answer:

B. 9.0 times.

Explanation:

Accounts Receivable Turnover (ART) = Net credit sales/ Average accounts receivable

Net credit sales = <em>$7,200,000</em>

Average accounts receivable = (beginning AR - ending AR) /2

Average Accounts receivable = ($820,000 + $780,000)/2

Average AR = <em>$800,000</em>

Therefore Accounts receivable turnover = $7,200,000/800,000 = 9.0 times

4 0

2 years ago