Business, 31.05.2021 15:20 gracie2492
Wasilko Corporation has two departments, Kids and Adults. The company’s most recent monthly contribution format income statement follows:
Department
Total Kids Adults
Sales $4,200,000 $3,000,000 $1,200,000
Variable expenses 2,000,000 1,500,000 500,000
Contribution Margin 2,200,000 1,500,000 700,000
Fixed Expenses 2,200,000 1,300,000 900,000
Net operating income (loss) 0 200,000 (200,000)
A study indicates that $250,000 of the fixed expenses being charged to the Adults Department are sunk costs or allocated costs that will continue even if the Adults Department is dropped. In addition, the elimination of the Adults Department will result in a 20% decrease in the sales of the Kids Department. If the Adults Department is dropped, what will be the effect on the net operating income of the company as a whole?
a. Decrease by $310,000
b. Decrease by $350,000
c. Decrease by $390,000
d. Increase by $390,000
Answers: 2
Another question on Business
Business, 21.06.2019 20:40
Maria am corporation uses the weighted-average method in its process costing system. the baking department is one of the processing departments in its strudel manufacturing facility. in june in the baking department, the cost of beginning work in process inventory was $4,880, the cost of ending work in process inventory was $1,150, and the cost added to production was $25,200. required: prepare a cost reconciliation report for the baking department for june.
Answers: 2
Business, 22.06.2019 21:20
Suppose life expectancy in years (l) is a function of two inputs, health expenditures (h) and nutrition expenditures (n) in hundreds of dollars per year. the production function is upper l equals ch superscript 0.40 baseline upper n superscript 0.60l=ch0.40n0.60. beginning with c = 1, a health input of $400400 per year (hequals=44) and a nutrition input of $400400 per year (nequals=44), show that the marginal product of health expenditures and the marginal product of nutrition expenditures are both decreasing. the marginal product of health expenditures when h goes from 44 to 55 is nothing, and the marginal product of health when h goes from 66 to 77 is nothing. (round your answers to three decimal places.)
Answers: 2
Business, 22.06.2019 23:10
Amazon inc. does not currently pay a dividend. analysts expect amazon to commence paying annual dividends in three years. the first dividend is expected to be $2 per share. dividends are expected to grow from that point at an annual rate of 4% in perpetuity. investors expect a 12% return from the stock. what should the price of the stock be today?
Answers: 1
Business, 23.06.2019 01:50
Mart's boutique has sales of $820,000 and costs of $540,000. interest expense is $36,000 and depreciation is $59,000. the tax rate is 21 percent. what is the net income? $146,150 221,200 105,000 139,050
Answers: 3
You know the right answer?
Wasilko Corporation has two departments, Kids and Adults. The company’s most recent monthly contribu...
Questions
Social Studies, 16.04.2020 02:01
History, 16.04.2020 02:01
Mathematics, 16.04.2020 02:01
