The required answer is $20,019.19.
Interest that is calculated and paid back using a 360-day calendar year rather than a full 365 days is termed as ordinary interest. Even while there isn't much of a difference in the computation, there may be a significant difference in the amount, particularly in large loan transactions.
Banks and business organisations frequently employ ordinary interest. When there is an issue with exact interest, it is specified that exact interest is needed; otherwise, ordinary interest is assumed to be the type of interest necessary.
In the given question,
Principle, P = $19,500
Rate of interest, R = 13 1(/2)% = 0.135
Time period, T = 71/360 year (Ordinary interest)
We know that,
Interest = (P x R x T)/100
= 19,500 x 0.135 x 71/360
= $519.19
Therefore, Alice needs to pay back $20,019.19 ($19,500 + $519.19).
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jensen is the marketer for globalmovers.com. she's done a comparative analysis of the site against competitor sites. she's convinced that improving the speed and responsiveness of the site will increase its effectiveness and revenue contribution. which statistic should she use to convince the executive leadership of globalmovers.com to make site speed a priority?
Search ranking is the statistic that she should use to convince the executive leadership of globalmovers.com to make site speed a priority.
Search ankings in SEO refers to a website's position within the computer program results page. There ar varied ranking factors that influence whether or not an internet site seems higher on the SERP supported the content relevancy to the search term, or the standard of backlinks inform to the page.
Statistics is that the discipline that considerations the gathering, organization, analysis, interpretation, and presentation of information. In applying statistics to a scientific, industrial, or social downside, it's typical to start with a applied statistical population or a applied statistical model to be studied.
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True or false.
There may be legitimate reasons for not single sourcing or forming buyer-supplier partnerships even in a progressive purchasing and supply management organization.
This assertion is untrue. There are no valid justifications for not employing single sourcing or forming partnerships between buyers and suppliers, not even in a forward-thinking organization for purchasing and supply management.
What is single sourcing?When a company decides to use just one supplier to deliver all of its goods—including materials, parts, and components—even when there are several vendors who can offer the same products, single sourcing takes place. Businesses commonly adopt single sourcing because it lowers costs. Single sourcing is another result of a bid or quote process. In these circumstances, a company may weigh the merits of several potential providers before settling on one.
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according to the classical theory of inflation, what is the long-run effect of an increase in the money supply?
Because a rise in the money supply also leads in an increase in the rate of inflation, this creates a fall in the value of money.
What happens when the money supply grows over time?A rise in the money supply will result in an increase in the overall demand for goods and services. In the long run, a rise in the money supply will typically result in higher prices. Increases in the money supply may also result in higher national output.
How does inflation change when the money supply rises?Inflation is a possibility when the Federal Reserve expands the money supply. In most cases, when the Fed tries to boost the economy by expanding the money supply, prices will rise, the cost of commodities will fluctuate,
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If the bauxite exporting countries form a cartel to boost the price of bauxite so as to increase sales revenue, they believe that the demand for bauxite:
a. Is inelastic with respect to price changes
b. Is elastic with respect to price changes
c. Will increase in response to a price increase
d. Will not change in response to a price change
They believe that demand for bauxite Is inelastic with respect to the price changes.
What is demand?Demand in economics refers to the quantity of a good that consumers are willing and able to buy at different prices at a particular time. The term "demand curve" refers to the correlation between price and quantity demand. An item's perceived necessity, price, perceived quality, convenience, alternatives that are offered, buyer preferences and disposable income, among many other factors, all affect how much demand there is for that particular item. How much the commodity costs: The basic link between a good's prospective prices and the quantities that would be bought at those prices is called the demand relationship. In general, the relationship is negative, which means that raising the price will result in lowering the quantity demanded. The slope of the consumer demand curve, which is negative, represents this relationship.
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last month the company had receipts totaling $3,700 this company has overhead cost a $444 what is the rate of overhead
The rate of overhead in the company is 12%.
How to calculate the rate of overhead?Total receipts = $3700
Overhead Cost = $444
(divide the overhead by total receipts)
444/3700
= 0.12
0.12 = 12%
What is meant by the rate of overhead?The overhead rate is calculated by dividing the total indirect costs (also known as overhead) for a certain reporting period by an allocation factor. Either real costs or planned expenditures might be included in the cost of overhead. Divide the company's monthly sales by its overall overhead expenses to determine the overhead rate. To determine your overhead rate, multiply this value by 100.
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suppose you come forward with a usability recommendation, and the engineers counter that with, "all the usage data we have from millions of people suggest that is not a problem." how would you respond?
Usage data even supposing huge numbers no longer suggest a high-quality layout. Clearly placed, consider how generally you had no choice but to use a certain provider although neither the layout nor your experience turned out brilliant!
The time period “usage data” refers to any statistics about how a product or service is used. In the past, the term may only have cited a tourist's moves on a website, or let you know what number of mins a person has used their smartphone.
Usage data series is a function, wherein information is collected on what the person is doing at his/her terminal. EDA will also comprise tools for reading a person's behavior via treating utilization series documents. presently handiest commands are recorded.
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taking the absolute value of the income elasticity of demand is incorrect because it would: remove the ability to tell whether the two products have inelastic demand or elastic demand. cause the value of the cross-price elasticity of demand to become smaller. cause the value of the cross-price elasticity of demand to become zero. remove the ability to tell whether the product is an inferior good or a normal good.
Taking the absolute value of the income elasticity of demand is incorrect because it would remove the ability to tell whether the product is an inferior good or a normal good.
Demand is a monetary idea that pertains to a purchaser's choice to buy goods and services and willingness to pay a particular price for them. An increase in the fee of a great or carrier tends to lower the quantity demanded.
Call for refers back to the customer's desire and willingness to buy products or services at a given duration or through the years. purchasers must also have the potential to pay for something they need or need as decided with the aid of their disposable earnings budget. consequently, demand is a pressure that influences monetary growth and marketplace growth.
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every business exists primarily to create profits. true — a business might have other goals it wants to achieve, but its leaders must be focused on profits first in order to achieve those other goals. true - a business only exists to create profits for the people it employs. false — businesses should not think about profits at all. instead, they should find a higher purpose to fulfill. false — although most businesses have to generate profits in order to sustain themselves, every business exists to fulfill a specific purpose.
True - A business might have other goals it wants to achieve, but its leaders must be focused on profits first in order to achieve those other goals.
True - A business only exists to create profits for the people it employs.
False - Businesses should not think about profits at all. Instead, they should find a higher purpose to fulfill.
False - Although most businesses have to generate profits in order to sustain themselves, every business exists to fulfill a specific purpose.
Profits are not at all opposed to purpose; in fact, they are intricately interwoven.
If a business wants to properly serve all of its stakeholders over time—including shareholders, employees, consumers, and communities—profits are crucial.
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hich of the following should not be considered cash by an accountant? a.money orders b.postage stamps c.travelers' checks d.bank checking accounts
Postage stamps are pre-paid charges and are no longer regarded to be cash
What are Postage Stamps?A small adhesive piece of paper of exact value issued via a postal authority to be affixed to a letter or a parcel to point out the quantity of postage paid. Postage stamps are the most many times used stamps and have a fixed amount of postage referred to on them.
How long can I use historic stamps?Use them up by means of 31 January 2023, or swap them out. We're adding barcodes to our everyday stamps. After 31 January 2023, everyday stamps besides a barcode* will no longer be valid.
Who is the father of Indian postal stamp?Indian Postal System used to be developed under the governor-generalship of Lord Dalhousie. He served as the Governor General of India from 1848 to 1856. The postal stamps had been used in 1854 for the first time.
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https://brainly.com/question/3988332#SPJ4"tuition at state university this year is $8,000. " which function of money does this statement best illustrate?.
"Tuition at state university this year is $8,000. " Unit of account function of money does this statement best illustrate.
Unit of Account: What Is It?One of the money functions is the unit of account in economics. A unit of account is a common numerical unit of measurement for money that is used to determine the market value of goods, services, and other transactions.
Why is cash used as a unit of account?Money can be used as a unit of account since it is utilized as a means of exchange for buying and selling as well as a measure of the value of all different sorts of commodities and services. The worth of things might fluctuate over time and via numerous transactions, thus money can keep track of those changes.
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the loan origination market, in which borrowers and lenders come together to provide adequate financing for the purchase of a property, is more commonly referred to as the:
The loan origination market, in which borrowers and lenders come together to provide adequate financing for the purchase of a property, is more commonly referred to as the:
Primary mortgage market.
In order to get mortgages for both owner-occupied homes and investment properties, potential homeowners must first interact with key lenders in the primary mortgage market. Prior to being sold to investors in the secondary mortgage market, mortgage loans originate in the primary mortgage market.
Borrowers seeking for a mortgage lender make up the whole main mortgage market. The market for second-hand mortgages is a very different animal. Investors transact in existing mortgages generated by the main mortgage market and packaged as mortgage-backed securities on the secondary mortgage market. The loan enters the secondary mortgage market once the mortgage has closed.
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not having to establish manufacturing operations overseas and being able to work to achieve experience curve and location economies are advantages of blank .benefits associated with entering a market on a large scale? (check all that apply.)
Not having to establish manufacturing operations overseas and being able to work to achieve experience curve and location economies are advantages of Exporting .
The structure and system that produces a product that can be sold to a customer are referred to as manufacturing operations. The process includes determining what customers want, acquiring materials, and producing a product. It also includes the steps for product delivery and inventory Exporting. Automotive companies, bakeries, shoemakers, and tailors are all examples of manufacturing because they all create products rather than providing services. However, logging and mining are not examples of manufacturing because they do not convert goods into new products.
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in 2017, the velocity of money is 5, the price level is 1.5, and real output is 2,500. in 2018, real output is 3,000 and the price level is 1.2. under the quantity theory of money, how much did the money supply grow?
Under the quantity theory of money, in 2018 the money supply actually decreased by 30 from 2017
Using the formula,
money supply × velocity of money = price level × real GDP
Let money supply be denoted as 'M'
In 2017,
M x 5 = 1.5 x 2500
M x 5 = 3750
M = [tex]\frac{3750}{5}[/tex]
M = 750
In 2018,
M x 5 = 1.2 x 3000
M x 5 = 3600
M = [tex]\frac{3600}{5}[/tex]
M = 720
Subtracting 2017's value from 2018's
750 - 720 = 30
Hence, the money supply decreased by 30
The quantity theory of money states that there is a direct correlation between the amount of money in circulation and the level of prices in a particular economy. In proportion to changes in the money supply and vice versa, the price level fluctuates. Friedman asserts that "money does matter."
He further asserts that his quantity theory is a theory of desire for money rather than a theory of output, income, or pricing. The two types of financial demand are then separated by him. In order to prevent inflation, economies must set a limit on the amount of money available. The premise of this theory is that output and velocity are both constant.
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bill, a u.s. citizen, pays a spanish architect to design a metal casting factory. which country's exports increase?
Bill, a US citizen, pays a Spanish architect to design a metal casting factory. This will result in an increase in the exports of Spain.
Architects are people who plan, design and supervise the construction of buildings. For practical purposes, architecture means providing services related to the design of buildings and the spaces within the site around buildings that are inhabited or used as a primary purpose.
Career requirements for architects vary from place to place. Architects' decisions affect public safety and therefore architects must undergo specialized training including graduate education and practical experience in order to obtain a license to practice architecture.
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define transit inventory. multiple choice question. it is the additional inventory produced in advance of seasonal peak demands. it is the inventory of items being transported from one location to another. it is the extra inventory held to guard against uncertainty in demand or supply. it is the inventory of items that are used as maintenance, repair, and operating supplies.
Inventory refers to the recording of products, parts, and raw materials that a company either sells or uses in manufacturing.
Which kind of inventory is utilized throughout the final stages of producing a product?All things that make it through the whole production process and are regarded as final products are included in the finished goods inventory.
Which inventory system is a way to record the balances of the stores at the moment of each receipt and issue to make regular checking and stock taking easier?Perpetual inventory system is a way of keeping track of a store's balances after each receipt and item disbursement to make routine checks easier and avoid having to close for stocktakes.
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the ceo scraps the company commission-based reward system because it rewards employees for inappropriate behavior. this is an example of
The layout of the company The firm's commission-based reward system is eliminated by the CEO because it encourages inappropriate behavior.
The importance of organization designThrough well-designed organizational structures, communication is enhanced, productivity is raised, and innovation is promoted. It creates a setting that promotes efficient work.
What does design aim to accomplish?A design is a strategy or set of specifications that is used to create a system, an object, or to carry out an action or a process. It can also be the result of these plans or requirements in the shape of a model, final product, or method. The process of designing is what creates a design.
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Fujita, Incorporated, has no debt outstanding and a total market value of $222,000. Earnings before interest and taxes, EBIT, are projected to be $18,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 25 percent higher. If there is a recession, then EBIT will be 30 percent lower. The company is considering a $60,000 debt issue with an interest rate of 7 percent. The proceeds will be used to repurchase shares of stock. There are currently 7,400 shares outstanding. Ignore taxes for this problem.
a-1. Calculate earnings per share (EPS) under each of the three economic scenarios before any debt is issued.
Earnings per share (EPS) will be calculated through Share price = $222,000/7400 = $30, Shares repurchased = $60,000/$30 = 2,000, Annual interest = $60,000×0.03 = $1800 and EPS Normal = [($18,000 - $1,800)/(7,400 - 2,000) = $3.00
Earnings per share is calculated by dividing a company's profit by the entire number of outstanding shares of its common stock (EPS). The resulting number is used to assess the profitability of a business. Businesses frequently provide EPS which has been modified to account for exceptional costs and potential share dilution. The higher a company's EPS, the more profitable it is judged to be.
To calculate a company's earnings per share, the net income is deducted from any preference shareholders and split by the number of ordinary shares (EPS). Net income, which refers to the sum of funding left remaining in a financial quarter after all currency and non-cash expenses are eliminated, less preferred dividends, is the amount a firm's profit for the time.
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legal and illegal labor migrants a. are called guest workers. b. provide many of the foods, goods, and services we consume daily. c. often receive long-term rights and privileges lacking in their nations of origin. d. fill niches that native-born workers want.
Legal and illegal labor migrants often receive long-term rights and privileges lacking in their nations of origin.
A wrong (from vintage English wrang – 'crooked')[1] is an act that is unlawful or immoral.[2] prison wrongs are normally quite virtually described inside the law of a country and/or jurisdiction. They can be divided into civil wrongs and crimes (or criminal offenses) in common regulation nations,[2] while civil regulation nations tend to have a few extra classes, inclusive of contraventions.
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compared to the original situation, where hip replacements cost $50,000 each but people had no insurance to help subsidize the cost, will the quantity demanded increase or decrease? increase by how much? 10000 surgeries
The quantity demanded will increase by 3,680 surgeries.
Price elasticity = 0.4
Insurance covers 70 percent of the bill.
This means that price has decreased by 70%.
When price decreases, quantity demanded increases.
Price elasticity = % change in quantity demanded/% change in price
0.4 = % change in quantity demanded/70
% change in quantity demanded = 28
Thus, the quantity demanded hip replacement will increase by 28 percent.
Price elasticity = 0.4
Insurance covers 95 percent of the bill.
This means that price has decreased by 95%.
When price decreases, quantity demanded increases.
Price elasticity = % change in quantity demanded/% change in price
0.4 = % change in quantity demanded/95
% change in quantity demanded = 38
Thus, the quantity demanded for hip replacement will increase by 38 percent.
The price of hip surgery has increased from $50,000 per surgery to $80,000 per surgery.
So,
New price = $80,000 per surgery
Insurance covers 95% of the price.
Amount covered by insurance = (95/100) * $80,000 = $76,000
Amount each insured person will pay = Price - Amount covered = $80,000 - $76,000 = $4,000
So, each insured patient will now pay $4,000 for hip replacement surgery.
Price elasticity = 0.4
Original demand (Q) = 10,000 surgeries
Original price (P) = $50,000
New price (P1) = $4,000
Calculate the percentage change in price -
% change in price = [(P1 - P)/P] * 100 = [(4,000 - 50,000)/50,000] * 100 = -92%
The negative sign indicates that the price has decreased. However, the negative sign can be ignored.
So, the percentage change in price equals 92 percent.
Price and quantity have an inverse relationship. As the price has decreased, the quantity demanded will increase.
So, the quantity demanded hip replacement surgery will increase.
Calculate % change in quantity demanded -
Price elasticity = % change in quantity demanded/% change in price
0.4 = % change in quantity demanded/92
% change in quantity demanded = 36.8
% increase in quantity demanded = 36.8
original demand = 10,000 surgeries
Increase in demand = 10,000 * (36.8/100) = 3,680
So, the quantity demanded will increase by 3,680 surgeries.
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3. jamie's motor home sales currently sells 1,000 class a motor homes, 2,500 class c motor homes, and 4,000 pop-up trailers each year. jamie is considering adding a mid-range camper and expects that if she does so she can sell 1,500 of them. however, if the new camper is added, jamie expects that her class a sales will decline to 950 units while the class c campers decline to 2,200. the sales of pop-ups will not be affected. class a motor homes sell for an average of $125,000 each. class c homes are priced at $39,500 and the pop-ups sell for $5,000 each. the new mid-range camper will sell for $47,900. what is the erosion cost?
The erosion cost is $18,100,000 when class c homes are priced at $39,500 and the pop-ups sell for $5,000 each and the new mid-range camper will sell for $47,900.
What Is Price Erosion and How Can You Prevent It?Price erosion occurs when you are obliged to cut your price—and thus the perceived worth of your product—in order to compete with unlicensed sellers or sellers who have broken your pricing policy. It is the gradual erosion of product pricing over time. If your brand is experiencing price erosion, it's a good indication that there's a problem with your retail partners somewhere down the line. All it takes is one severe offender to set off "race-to-the-bottom pricing," in which all of your retail partners violate your pricing policy in order to compete with the initial offender, and your price eventually drops so low that retailers must sell at cost to compete.
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factor markets are different from product markets in an important way, group of answer choices factor markets are fraught with disequilibrium. the factor supply function is likely to be downward sloping. factor demand is a derived demand. factor demand is likely to be upward sloping.
Factor markets are different from product markets in an important way as factor demand is a derived demand.
Describe factor marketplaces.All of the resources that firms utilize to buy, rent, or hire what they require in order to produce goods or services are collectively referred to by economists as the "factor market." These requirements are met by the production factors, which include land, labor, capital, and raw materials. The market for factors is also known as the input market.
What kinds of marketplaces are factor markets?It can be described as a market for production inputs including land, labor, and raw materials. A job fair, the sale of land to a mall by its owner, or bank loans to business owners are a few instances of factor markets.
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the manager of a resort hotel stated that the mean guest bill for a weekend is $800 or less. a member of the hotel's accounting staff noticed that the total charges for guest bills have been increasing in recent months. the accountant will use a sample of future weekend guest bills to test the manager's claim.
Using a sample of future weekend guest bills, we conclude the manager's claims are wrong.
A)
u ≤900
u > 900
So, the hypothesis u≤900 and u > 900 will be used
B)
It cannot be rejected
So, it means u is less than or equal to 900
So, conclusion would be we are not able to conclude that manager's claim is wrong
We cannot conclude that u > 900
C)
u > 900
Hence,
We are able to conclude that manager's claim is wrong
We can conclude that u > 900
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as the unit cost of production increases, does profit become more sensitive or less sensitive to changes in unit cost?
Based on the Cost-Volume-Profit Analysis, as the unit cost of production increases, profit becomes more sensitive to changes in unit cost.
Cost-Volume-Profit (CVP) Analysis demonstrates how changes in variable and fixed costs affect a fim's profit. CVP helps a company to see how many units of product it need to sell to reach break even point or reach a certain minimum profit margin. CVP could be calculated using this formula:
Break-even sales volume = Fixed Costs
Sales - Variable costs
When a company raises its unit cost without increasing the product price, its break-even sales volume will increase and the amount of profit it receive will decrease.
Changes on unit costs directly impact on the profitability and financial sustainability. If unit costs increase without a corresponding increase in selling price, the profitability of product will diminish.
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assuming a country's economy maintains an 3.5% rate of growth, young adults starting at age 20 would see the economy (and average standard of living) in their country tripled by the time they had reached the age of (approximately)
Assuming a country's economy maintains an 3.5% rate of growth, young adults starting at age 20 would see the economy (and average standard of living) in their country tripled by the time they had reached the age of (approximately). 52years
Let's consider economy = 1 when the young adults were 20.
CAGR = (1+r)n-1
n= 33
R = 0.035
=(1+0.035)n-1
=1.035 33-1
=1.035 32
= 3.006
So, it takes 52 years
Increase prices talk over with the percentage alternate of a particular variable inside a selected time period. growth prices can be nice or poor, depending on whether the dimensions of the variable is growing or decreasing through the years.
An economy encompasses all the sports related to the production, consumption, and alternate of products and services in an entity, whether the entity is a nation or a small town. No two economies are identical. every is shaped according to its personal resources, lifestyle, laws, records, and geography.
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Phoebe Johnson is a senior HR executive at CarMakers Corp. She has been informed that the company needs to hire five line workers for their Kingston plant. Phoebe decides to go down to the plant to get a better idea of the work. She speaks to the line workers there and gets firsthand information about the important aspects of the job involved. Phoebe is using the ________ method to collect information.
1) job family description 2) entry examination 3) job profiling 4) desk audit
Senior HR executive Phoebe Johnson works for CarMakers Corp. Phoebe is gathering data that use the desk audit technique.
By audit, what do you mean?A physical inventory check is followed by an auditor's review or inspection of different books of accounts to ensure that all divisions are using the same documented system of documenting transactions. It's done to make sure the organization's financial accounts are accurate.
What three sorts of audits are there?Internal audits, IRS audits, and external audits are the three primary categories of audits. Certificate Public Accountant (CPA) firms frequently carry out external audits, which produce a literature review and included in the audit findings.
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a stock has an expected return of 6.5 percent, the risk-free rate is 1.1 percent, and the market risk premium is 5 percent. what is the stock's beta?
The stock beta for a stock that has an expected return of 6.5%, the risk-free rate 1.1%, and the market risk premium 5% is 1.08 (based on CAPM approach)
CAPM is an acronym of Capital Asset Pricing Model and it is a financial model that calculates the expected return for an asset or investment. CAPM will calculate by using the expected return on both market and from a risk-free asset, also with the asset's correlation with the beta value (sensitivity to the market).
How to calculate the stock's beta using CAPM formula?
Expected return = Rf + beta (Rm - Rf)
where
Rf = risk free rate = 1.1%
Rm - Rf = RPM = 5%
expected return = 6.5%
6.5% = 1.1% + beta * 5%
5.4% = beta * 5%
beta = 1.08
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Lincoln informed the authorities in south carolina that he was going to ______ the island fort in the charleston harbor but not ______ unless the supply ships met with resistance.
Lincoln informed the authorities in south Carolina that he was going to resupply the island fort in the Charleston harbor but not reinforce it with troops and munitions unless the supply ships met with resistance.
What separates weapons and ammunition?Basically, ammunition comprises of shells, powder, fuses, and bullets, whereas munition includes everything like firearms, revolvers, rifles, special weapons, bombs, and missiles. More exactly, munitions are defined as weapons that need ammunition to operate.
Why is a weapon called a shell?Early hollow cast-iron balls filled with gunpowder were called "shells," which were comparable weapons meant to be shot from artillery rather than solid cannonballs. Since the casing is where the word "shell" originates, it has come to refer to the entire munition.
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Complete the following sentence by selecting the best option from the list below. Thomas Cook Travel was one of the first tourism organizations to calculate the ___________________ of its customers. A: LoyaltyB: ExpendabilityC: ProfitabilityD: MarketabilityE: Manageability
Thomas Cook Travel was one of the first tourism organizations to calculate the Marketability of its customers.
Organizations are structures created to attain commonplace dreams through human-to-humans and people-to-work relationships. they're basically social entities that might be intention-directed, intentionally dependent on coordinated interest structures, and related to the outside surroundings.
There is a diffusion of felony forms of businesses, such as corporations, governments, non-governmental groups, political corporations, worldwide organizations, defense forces, charities, now not-for-profit agencies, partnerships, cooperatives, educational establishments, and many others.
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tina just sold her investment property. she’ll have to pay a transfer tax as well as recapture her depreciation. what other tax will apply?
This is as a result of depreciation recapture, which entails paying a 25% tax on the total amount of your depreciation deductions.
How is recaptured depreciation taxed?When a real estate investor sells the property, the depreciation costs they incurred are recovered. Taxes on depreciation recapture can reach a maximum of 25% of an investor's ordinary income tax rate. The capital gains tax rate on residual gains from the sale of a rental property is 0%, 15%, or 20%.
Do you pay for both recapture of capital gains and depreciation?Depreciation recapture involving real estate and properties is subject to capital gains tax. Capital gains tax is not included in the depreciation recapture for equipment and other assets, though.
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valdez company is considering eliminating its kitchen division, which reported an operating loss of $63,000 for the past year as shown below. segment income (loss) sales $ 1,240,000 variable costs 924,000 contribution margin 316,000 fixed costs 379,000 income (loss) $ (63,000) if the kitchen division is dropped, all $924,000 of its variable costs are avoidable, and $227,400 of its fixed costs are avoidable. the impact on valdez’s income from eliminating this business segment would be:
The impact on valdez’s income from eliminating this business segment would be business $151600.
What is business?The term “business” refers to the primary goal of generating a profit. The company is taking a risk and profiting from it. The enterprises' functions are focused on the creation, distribution, and sale of concepts.
valdez company the eliminating of the business.
contribution margin = sales - variable costs
contribution margin = 1,240,000 - 924,000
contribution margin = 316,000
Current loss= contribution margin - fixed costs
Current loss= 316,000 - 379,000
Current loss= (63,000)
Net loss if division is discontinued = 379,000 - $227,400
Net loss if division is discontinued = $151600.
As a result, this business segment would be business $151600.
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