Bed & bath, a retailing company, has two departments—hardware and linens. the company’s most recent monthly contribution format income statement follows: department total hardware linens sales $ 4,200,000 $ 3,030,000 $ 1,170,000 variable expenses 1,266,000 850,000 416,000 contribution margin 2,934,000 2,180,000 754,000 fixed expenses 2,250,000 1,350,000 900,000 net operating income (loss) $ 684,000 $ 830,000 $ (146,000 ) a study indicates that $372,000 of the fixed expenses being charged to linens are sunk costs or allocated costs that will continue even if the linens department is dropped. in addition, the elimination of the linens department will result in a 13% decrease in the sales of the hardware department. required: what is the financial advantage (disadvantage) of discontinuing the linens department?

Which of the following statements is correct? a. two firms with identical sales and operating costs but with different amounts of debt and tax rates will have different operating incomes by definition. b. free cash flow (fcf) is, essentially, the cash flow that is available for interest and dividends after the company has made the investments in current and fixed assets that are necessary to sustain ongoing operations. c. retained earnings as reported on the balance sheet represent cash and, therefore, are available to distribute to stockholders as dividends or any other required cash payments to creditors and suppliers. d. if a firm is reporting its income in accordance with generally accepted accounting principles, then its net income as reported on the income statement should be equal to its free cash flow. e. after-tax operating income is calculated as ebit(1 - t) + depreciation.

A.j. was a newly hired attorney for idle time gaming, inc. even though he reported directly to the president of the company, a.j. noticed that the president always had time to converse with the director of sales, calling on him to get a pulse on legal/regulatory issues that, as the company attorney, a.j. could have probably handled. a.j. also noted that the hr manager’s administrative assistant was the go-to person for a number of things that would make life easier at work. a.j. was recognizing the culture at idle time gaming.

The face of a company is often that of the lowest paid employees who meet the customers. select one: true false