subject
Business, 27.12.2020 16:40 jonathanvega424

The Draper Company is considering dropping its Doombug toy due to continuing losses. Revenue and costs data on the toy for the past year follow: Sales of 15,000 units $150,000 less Variable expenses $120,000 = Contribution margin $30,000 less Fixed expenses $40,000 = Net operating loss ($10,000) If the toy were discontinued, then Draper could avoid $8,000 per year in fixed costs. Under the given conditions, the change in annual operating income from discontinuing the production and sale of Doombugs would be: A. $30,000 decrease
B. $10,000 increase
C. $22,000 decrease
D. $18,000 increase

ansver
Answers: 1

Another question on Business

question
Business, 21.06.2019 16:10
Computing depreciation, net book value, and gain or loss on asset sale lynch company owns and operates a delivery van that originally cost $46,400. lynch has recorded straight-line depreciation on the van for four years, calculated assuming a $5,000 expected salvage value at the end of its estimated six-year useful life. depreciation was last recorded at the end of the fourth year, at which time lynch disposes of this van. compute the net bookvalue of the van on the disposal date.
Answers: 1
question
Business, 22.06.2019 01:30
Someone knows the answer i need in the exam
Answers: 2
question
Business, 22.06.2019 01:30
Ben collins plans to buy a house for $166,000. if the real estate in his area is expected to increase in value by 2 percent each year, what will its approximate value be five years from now?
Answers: 1
question
Business, 22.06.2019 07:30
Jewelry manufacturers produce a range of products such as rings, necklaces, bracelets, and brooches. what fundamental economic question are they addressing by offering this range of items?
Answers: 3
You know the right answer?
The Draper Company is considering dropping its Doombug toy due to continuing losses. Revenue and cos...
Questions
question
Mathematics, 27.10.2020 01:00
question
Mathematics, 27.10.2020 01:00
question
Social Studies, 27.10.2020 01:00
question
German, 27.10.2020 01:00
Questions on the website: 13722361