Answer:
The correct answer is C that is $(140,000)
Explanation:
Elimination of the North Division will result in the overall net income or loss which is computed as:
Elimination of the North Division will result in the overall net income or loss = South Net Income (NI) - North's allocated costs
where
South Net Income is $100,000
North's allocated costs is $240,000
So,
= $100,000 - $240,000
= $(140,000)
Therefore, it will result in loss of $140,000
Note: The Net Income will be decline or decrease by $240,000 when the division was dropped.
Answer:
D. not joining FFA and joining HOSA instead
Explanation:
Answer:
Break-even point in dollars is b) 810,811
Explanation:
Break-even point is the amount of sales in a company when there is no lost nor earnings. When the sales cover both fixed costs and variable costs.
It is calculated with the fixed cost divided to the porcentage of contribution margin.
step 1: % of contribution margin
CMg/total sales
($90,000+$280,000)/$1,000,000=0.37 %CMg
Step 2: Break-even point
FC/%CMg
$300,000/0.37=$810,811
Answer:
The answer is: $40,000
Explanation:
Chris's opportunity cost of working as a consultant instead of working as a business manager (her old job) is $40,000. So in order for Chris to earn normal profit, the difference between his revenue and his combined explicit (e.g. rent, assistant's salary) and implicit costs (opportunity cost) is zero.
