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2 years ago

A company has three product lines, one of which reflects the following results:

Business

1 answer:

Lina20 [59]2 years ago

4 0

Answer:

The correct answer is C.

Explanation:

Giving the following information:

Sales $215,000

Variable expenses 125,000

Contribution margin 90,000

Fixed expenses 130,000

Net loss $ (40,000)

If this product line is eliminated, 60% of the fixed expenses can be eliminated and the other 40% will be allocated to other product lines.

Effect on income= - contribution loss + fix costs save

Effect on income= -90,000 + 78,000= - 12,000

Income will decrease by $12,000

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Haberdash inc. last year reported sales of $12 million and an inventory turnover ratio of 3. the company is now adopting a just-

Sindrei [870]

Sales = $12,000,000

Inventory Turnover ratio (old) = 3
Inventory Turnover ratio (new) = 7.5
Freed up Cash = ?
So, let’s find out the freed up cash
 We know level of inventory are calculated as follows;
Inventory = Sales Inventory turnover ratio
Calculating $ value of old inventory
 Inventory Old=$12,000.0003
 =$7.5,000,000
 Calculating $ value of New inventory
 Inventory New=$12,000,0075
 =$3,000,000
 The freed up cash would be=Old Inventory – New Inventory
 =$7.5,000,000 - $3,000,000
=$4.5,000,000

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2 years ago

Read 2 more answers

The cover letter should _____. a. be a minimum of two pages in length b. never ask for an interview c. introduce you to an emplo

eimsori [14]

✧･ﾟ: *✧･ﾟ:* *:･ﾟ✧*:･ﾟ✧

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✧･ﾟ: *✧･ﾟ:* *:･ﾟ✧*:･ﾟ✧

❖ The cover letter should c. introduce you to an employer.

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2 years ago

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At January 1, 2021, Café Med leased restaurant equipment from Crescent Corporation under a nine-year lease agreement. The lease

marusya05 [52]

Answer:

$11,750

$189,750

Explanation:

1: Calculation for the effect of the lease on Café Med's earnings for the first year

Based on the information given we were told that the lease agreement has annual payments of the amount $29,000 which means that Corporation will recognized a rental revenue of the amount $29,000 each year

Now let Compute for the depreciation to be charged on equipment using this formula

Annual depreciation = Cost of equipment / Useful life

Let plug in the formula

Annual depreciation= $207,000 / 12

Annual depreciation= $17,250

Second step is to Compute for Crescent Effect on earnings using this formula

Crescent Effect on earnings = Rental revenue - Depreciation expense

Let plug in the formula

Crescent Effect on earnings= $29,000 - $17,250

Crescent Effect on earnings= $11,750

2. Calculation for the balances in the balance sheet accounts

Using this formula

Equipment balance at the end of 2021 = Cost - Accumulated depreciation

Let plug in the formula

Equipment balance (net) at the end of 2021= $207, 000 - $17, 250

Equipment balance (net) at the end of 2021= $189,750

Deferred lease revenue will be the Rental amounts that was received in advance on 31. DEC.2021 for 2019 year = $29,000

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2 years ago

Crane Company can produce and sell only one of the following two products: Oven Contribution Hours Required Margin Per Unit Muff

Makovka662 [10]

The question is reproduced in the table below for clarity

Oven Contribution

Hours Required Margin Per Unit

Muffins 0.2 $4

Coffee Cakes 0.3 $5

Answer:

Total contribution margin = $ 60,000.00

Explanation:

When a business is faced with a problem of shortage of a resource which can be used to produced more than one product type, to maximize the use of the resource , the business should allocate it for production purpose in such a way that it maximizes the contribution per unit of the scare resource.

Therefore Crane Company should alocate the oven hours to maximise the contribution per unit of oven hour. This is done as follows:

Step 1

Calculate he contribution per oven hour and rank the product

cont/hr ranking

Muffin $4/0.2 hour = 20 1st

Coffee cakes $5/0.3 hour= 16.67 2nd

Because Muffin generates the highest contribution per hour of Oven, Crane should allocate all the resource to it

Step 2

Calculate the Total contribution from the production of Muffin

Total contribution margin = 20 per her × 3000

= $ 60,000.00

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2 years ago

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Which of the following is a function of online analytical processing? Group of answer choices feeding vast amounts of informatio

Orlov [11]

Answer:

Helping organisations spot suspicious activity.

Explanation:

Online analytical processing can be described as a type of technology that is utilized by different organizations to achieve an excellent database. It gives managers of large organisations access to store large volumes of information such as employees data, the various equipments bought in the company and the costs incurred, the different activities that take place in the organization.

Online analytical processing also serves as a tool that is used to track the performance and activities of various employees in the organization so as to track any suspicious activity.

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2 years ago