The following information is for X Company's two products - A and B: Revenue Variable Costs...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The following information is for X Company's two products - A and B: Revenue Variable Costs Fixed costs Profit Product A Product B $92,000 $94,000 51,520 53,580 $31,730 $8,750 $59,710 $-19,290 $6,346 of Product A's fixed costs are directly related to Product A; $6,568 of Product B's fixed costs are directly related to Product B. All other fixed costs are allocated to the individual products. X Company is considering droping Product B because of its reported loss If it drops Product B, what will be the effect on firm profits? OA: $-21,665 OB: $-27,082 OC: $-33,852 OD: $-42,315 OE: $-52,894 OF: $-66,117 Submit Answer Tries 0/99 The following information is for X Company's two products - A and B: Revenue Variable Costs Fixed costs Profit Product A Product B $92,000 $94,000 51,520 53,580 $31,730 $8,750 $59,710 $-19,290 $6,346 of Product A's fixed costs are directly related to Product A; $6,568 of Product B's fixed costs are directly related to Product B. All other fixed costs are allocated to the individual products. X Company is considering droping Product B because of its reported loss If it drops Product B, what will be the effect on firm profits? OA: $-21,665 OB: $-27,082 OC: $-33,852 OD: $-42,315 OE: $-52,894 OF: $-66,117 Submit Answer Tries 0/99
Expert Answer:
Answer rating: 100% (QA)
Answer If X Company drops Product B the effect on firm profits can be calculated as follows Curr... View the full answer
Posted Date:
Students also viewed these accounting questions
-
You can buy a computer system today for $ 5 0 , 0 0 0 which will last for 4 years from the date of installation. The PV of savings are expected to be $ 7 0 , 0 0 0 , the NPV of this investment is $ 2...
-
Question: Old MathJax webview Old MathJax webview i need ans of these question but the source is alot Old MathJax webviewOld MathJax webview i need ans of these question but the source is alot these...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
On 1 June 2019, Manchester United Ltd bought 48 million ordinary shares in Chelsea FC Ltd paying GHS 280 million cash. The summarised statement of financial position for the two entities as at 31...
-
In an article that appears on the website of the American Statistical Association (www.amstat. org), Carlton Gunn, a public defender in Seattle, Washington, wrote about how he uses statistics in his...
-
You are bicycling along a straight north-south road. Let the x -axis point north. Describe your motion in each of the following cases. Example: ax > 0 and vx > 0 means you are moving north and...
-
Moeder Co. uses a sales journal, a purchases journal, a cash receipts journal, a cash disbursements journal, and a general journal. The following transactions occur in the month of November. Nov. 3...
-
Quoton Corporation acquired 80 percent of Tempro Companys common stock on December 31, 20X5, at underlying book value. The book values and fair values of Tempros assets and liabilities were equal,...
-
1. Find a situation that can be modeled using similar triangles 2. Take a picture or sketch the situation 3 Use the scale factor to determine the lengths of all sides of the trianal
-
Norr and Caylor established a partnership on January 1, 2007. Norr invested cash of 30,000 in cash and equipment with a book value of 50,000. Caylor brings $60,000 cash to the partnership. For both...
-
Verizon Wireless's Hiring Process: Visit the Career page on Verizon's website and make a profile for yourself. Select a job position that interests you after making a profile. Apply to that selected...
-
Vera Loewenhaupt and Sons ("VL&H") is a corporation with a vast empire in the manufacturing and trading of wickerware products. The firm has 580.0 million shares of ordinary equity outstanding that...
-
What is the output from the following statements: if ('4'> '3' ||2
-
What are some questions should consider if plan to take a business internationally? What questions should consider as it relates to international relationships? What are some reasons to develop an...
-
A bond pays semiannual interest. It's coupon is 8%. It's value at maturity is 1000. It matures in 6 years. It's yield is 6%. How much is convexity? Using convexity calculate the price change if...
-
discussinghow Kraft strikes a balance between standardization and adaptation of Oreo's Product, Price, Place (distribution) and Promotion in its global marketing mix. Make sure that you address:...
-
On average there are four traffic accidents in a city during one hour of rush-hour traffic. Use the Poisson distribution to calculate the probability that in one such hour there arc (a) No accidents...
-
Max is considering an investment proposal that requires an initial investment of \($91,100\), has predicted Cre cash inflows of \($30,000\) per year for four years and no salvage value. At a discount...
-
The internal rate of return of the investment proposal presented in question 2 is: a. 8 percent b. 10 percent c. 12 percent d Less than 8 percent
-
Which of the following statements is not a characteristic of an effective capital budgeting process? a. Requires an adjustment to make cash flows comparable when they are expected to occur at...
Study smarter with the SolutionInn App