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1 year ago

Strategically , a company may phase out or sell an sbu. this is known as

1 answer:

6 0

Strategically, a company may phase out or sell an SBU this is known as DIVESTMENT.
Divestment is the process of selling an asset to obtain financial goals. Divesting involves a company selling its assets to improve its value and obtain higher efficiency.

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Block Island TV currently sells large televisions for $360. It has costs of $280. A competitor is bringing a new large televisio

dezoksy [38]

Answer:

B ($227.27)

Explanation:

Before the competitor arrived

Annual cost = $280 × 100,000 = $28,000,000

Annual sales = $360 × 100,000 = $36,000,000

Annual profit = $36,000,000 - $28,000,000 = $8,000,000

When the competitor arrived

Quantity sold annually increases by 10% = 100,000 + (100,000×0.1) = 100,000 + 10,000 = 110,000

Annual sales = $300 × 110,000 = $33,000,000

Target cost to make a profit of $8,000,000 = ($33,000,000 -$8,000,000)/110,000 = $25,000,000/110,000 = $227.27

5 0

2 years ago

Some experts recommend devoting about ________ of the total writing time to the third phase of the writing process.

klemol [59]

Answer:

50%

Explanation:

There are 3 stages of writing namely; pre writing, composing, post writing. 50% of the total writing time is recommended by experts to be devoted to the post writing phase to ensure that the writing is error free and well revised. This allows for a interesting read of the final product. This third phase mainly involves revising/editing and proofreading.

Cheers.

6 0

1 year ago

Jack is a self-employed contractor. He uses his Ford F250 in his business. He does not have another vehicle for personal use. He

miskamm [114]

C business mileage during the year to claim the standard mileage rate for the business

5 0

1 year ago

Barkoff Enterprises, which uses the high-low method to analyze cost behavior, has determined that machine-hours best explain the

Paha777 [63]

Answer:

The utilities cost associated with 1,110 machine hours will be $10,505.

Explanation:

High Low method is a way to calculate the variable and fixed cost element of total cost using lowest level of activity and its cost and highest level of activity and its cost.

In this example The Highest activity of Machine hour is in the month of May and Lowest activity is in February.

Using high low method:

Variable cost = ( Highest activity cost - Lowest activity cost ) / ( Highest activity - Lowest activity )

Variable cost = ( Cost in May - Cost in February ) / ( Machine hours in May - Machine Hours in February)

Variable cost = ( $9,625 - $8,360 ) / ( 950 - 720 )

Variable cost = $1,265 / 230

Variable cost = $5.50 per machine hour

Fixed Cost = $8360 - ( 720 x $5.5) = $8360 - $3960 = $4,400

Utility cost of 1110 units = $4,400 + ( 1,110 x 5.5 ) = $4400 + $6,105 = $10,505

5 0

1 year ago

Gingerbread Inc. reported the following selected financial information for 2019: Net Sales $850,000 Gross Profit 450,000 Net Inc

tiny-mole [99]

Answer:

Accounts payable would be 20.42% of the balance sheet , when preparing a vertical analysis.

Explanation:

In the question it is told that Ginger bread is doing a vertical analysis, where when we have to calculate the percentage of certain item of the balance sheet , we will use formula -

( Balance sheet item / Total liability ) x 100

Given information - Accounts payable = $245,000

Total liabilities = $1200,000

Putting these values in formula -

= $245,000 / $1200,000 X 100

= .20416 X 100

= 20.416

= 20.42% ( APPROXIMATELY )

8 0

2 years ago