Answer:
a. According to the company's accounting system, what is the net operating income earned by product D14E? (Net losses should be indicated by a minus sign.)
b. What would be the financial advantage (disadvantage) of dropping product D14E? Should the product be dropped?
- financial disadvantage of discontinuing the produce is -$68,000, so the company should not discontinue the product since its losses would increase
Explanation:
total sales $670,000
- variable expenses $295,000
- fixed manufacturing expenses $246,000
- fixed selling and administrative expenses $194,000
net loss = $65,000
if product D14E is discontinued, $196,000 + $111,000 = $307,000, of fixed expenses can be avoided, but $133,000 are not avoidable. if the company discontinues the product, its losses will increase by $133,000 - $65,000 = $68,000
Answer:
The answer is
Dunbar Echo Co will report a loss of $1,120
Explanation:
Straight-line depreciation = (cost of asset - salvage/residual value) ÷ number of useful life
Cost of asset - $41,200
Salvage/residual value - $0
Number of useful life - 5 years
$41,200/5
= $8,240
January 1, 2016 through January 1, 2018 is two years. So accumulated depreciation = $16,480($8,240 x 2)
Carrying value of the asset as at January 1, 2018 is
$41,200 - $16,480
=$24,720.
On this date, the asset was sold for $23,600.
Therefore, Dunbar Echo Co made a loss of $1,120($23,600 - $24,720)
Answer:
$1.2 per mile
Explanation:
Computation of the variable cost per mile using the high-low method
Using this formula
Variable cost per mile = (Highest activity cost - Lowest activity cost)/(Highest activity - Lowest activity)
Let plug in the
Variable cost per mile= (14,721 - 13,503)/(8,510 - 7,495)
Variable cost per mile= 1,218/1,015
Variable cost per mile=$1.2 per mile
Therefore the Variable cost per mile will be $1.2 per mile.
<span>If Dewayne writes 31 checks, he will pay a fee of $16.30 (.30x31 = 7) for the first banking option, but he will pay $16.40 (.40x31 = 4) for the second option, so he must write 31 checks for the first option to be the better option.</span>
Answer:
$746.90
Explanation:
The old monthly payment can be derived from the information given in the scenario:
It says that ''at the end of 1 year he owes the bank $70,000'' and we are also told that ''he paid $10.67 monthly per thousand on his original loan.''
Logically then, the old monthly payment = $10.67 per $1,000 into $70,000
Old monthly payment = ($70,000 / $1,000) x $10.67
which is 70 x $10.67 = $746.90
