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 $ 4,270,000 $ 3,090,000 $ 1,180,000 Variable expenses 1,380,000 979,000 401,000 Contribution margin 2,890,000 2,111,000 779,000 Fixed expenses 2,260,000 1,360,000 900,000 Net operating income (loss) $ 630,000 $ 751,000 $ (121,000 ) 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 16% decrease in the sales of the Hardware Department. Required: What is the financial advantage (disadvantage) of discontinuing the Linens Department?
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Business, 22.06.2019 10:30
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Business, 22.06.2019 15:10
Paddock pools constructed a swimming pool and deck for the jensens' home. paddock installed the wrong trim on the pool. it would cost $2800 to change the trim-one-fifth of the total cost of the pool. the jensens refuse to pay anything for the pool. the paddock's best defense is: (a) duress (b) substanial performance (c)mistake (d) failure of conditions
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Business, 23.06.2019 03:00
To assess the risk and return involved in a purchase decision, which practical questions should a potential buyer ask? select three options. what can go wrong? what are the alternatives? how will it affect my status in society? what is the likely return? is the risk worth the return?
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Bed & Bath, a retailing company, has two departments—Hardware and Linens. The company’s most rec...
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