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eimsori [14]
2 years ago
12

Wallen Corporation is considering eliminating a department that has an annual contribution margin of $80,000 and $160,000 in ann

ual fixed costs. Of the fixed costs, $90,000 cannot be avoided. The annual financial advantage (disadvantage) for the company of eliminating this department would be:
Business
1 answer:
Svetradugi [14.3K]2 years ago
3 0

Answer:

-$10,000

Explanation:

For computing the annual financial advantage or disadvantage, we have to determine the net income or loss  in both cases which are shown below:

In the first case

Net income or loss = Annual contribution margin - annual fixed cost

                   = $80,000 - $160,000

                   = $80,000

And, the net income with fixed cost is $90,000

So, the financial disadvantage would be

= $80,000 - 90,000

= -$10,000

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Complete the description of how George financed his car purchase.
Lena [83]
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4 0
2 years ago
Patty Corporation holds 75 percent of Slider Corporation's voting common stock, acquired at book value. The fair value of the no
Marina86 [1]

Answer:

1) d. $175,000

2) b. $156,250

Explanation:

1. The computation of net income for 20X9 under the treasury stock method is shown below:-

Net income for 20X9 under the treasury stock method = Janet Operating income + Slider operating income

= $100,000 + $75,000

= $175,000

2. The computation of income assigned to the controlling interest for 20X9 is shown below:-

income assigned to the controlling interest for 20X9 = Janet Operating income + (Slider operating income × Remaining percentage)

= $100,000 + ($75,000 × 75%)

= $100,000 + $56,250

= $156,250

Therefore we have applied the above formulas.

5 0
2 years ago
Basic earnings per share ignores:A. All potential common shares.B. Some potential common shares, but not others.C. Dividends dec
Aleksandr [31]

Answer:

A. All potential common shares.

Explanation:

Basic earnings per share ignores all potential common shares.

8 0
2 years ago
Which one of the following relationships is stated correctly? Multiple Choice The capital gains yield is equal to zero for a zer
S_A_V [24]

Answer:

Decreasing the time to maturity increases the price of a discount bond, all else constant.

Explanation:

A discount bond is a bond that is issued for less than its par or face value. Discount bonds may also be a bond currently trading for less than its face value in the secondary market.

Yield to maturity considers the bond's current market price, par value, coupon interest rate, and time to maturity to calculate a bond's return.

5 0
2 years ago
Which of these investments may be long term? Choose four answers.
DIA [1.3K]

The invesment that may be long term is retirement funds as it will only be used when the person that made that investment will get there money when they retire.

4 0
2 years ago
Read 2 more answers
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