Consider Knight Fashion from S8-5. Assume that the fixed expenses assigned to each department include only direct
Question:
In S
Salary of the departments manager
Cost of advertising directly related to that department
If Knight Fashion drops a department, it will not incur these fixed expenses. Under these circumstances, should Knight Fashion drop any of the departments? Give your reason.
Transcribed Image Text:
Department Men's Women's Accessories Total $105,000 $54,000 $100,000 $259,000 Sales revenue. Variable expenses. Fixed expenses Total expenses. Operating income (loss) 60,000 30,000 80,000 170,000 25,000 20,000 25,000 70,000 5,000 50,000 105,000 240,000 $20,000 4,000 (5,000) $19,000
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 69% (13 reviews)
If Knight Fashion can eliminate the fixed expenses assigned to a department by el...View the full answer
Answered By
CHARLES AMBILA
I am an experienced tutor with more than 7 years of experience. I have helped thousands of students pursue their academic goals. My primary objective as a tutor is to ensure that students have easy time handling their academic tasks.
5.00+
109+ Reviews
323+ Question Solved
Related Book For
Managerial Accounting
ISBN: 978-0176223311
1st Canadian Edition
Authors: Karen Wilken Braun, Wendy Tietz, Walter Harrison, Rhonda Pyp
Question Posted:
Students also viewed these Managerial Accounting questions
-
Consider Mila Fashion from S8- 5. Assume that the fixed expenses assigned to each department include only direct fixed costs of the department (rather than unavoidable fixed costs as given in S8- 5):...
-
Consider Zena Fashion from S8-5. Assume that the fixed expenses assigned to each department include only direct fixed costs of the department (rather than unavoidable fixed costs as given in S8-5):...
-
Consider Devine Fashion from S8-6. Assume that the fixed expenses assigned to each department include only direct fixed costs of the department (rather than unavoidable fixed costs as given in S8-6):...
-
Suppose you are a money manager of a $5 million investment fund. The fund is invested in four funds with the following investments and betas: Stock A B Shares 100,000 100,000 75,000 20,000 C D Price...
-
What are the equilibrium real wage rate, the quantity of labour employed in 2010, labour productivity, and potential GDP in 2010? The first table describes an economys labour market in 2010 and the...
-
Debit-to-Equity Ratio Calculate the company's 2019 debt-to-equity ratio and compare the result to the industry average. Use the following financial data for Brenner Instruments Sales revenue.. Cost...
-
A German subsidiary of a U.S. parent reports its accounts in euros. Its functional currency, however, is the Swedish krona. You are responsible for changing the subsidiarys accounts into U.S. dollars...
-
For the Pittsburgh Development Corporation problem in Section 4.3, the decision alternative to build the large condominium complex was found to be optimal using the expected value approach. In...
-
what I have already says these are the wrong answer. Greta has risk aversion of \( A=5 \) when applied to return on wealth over a one-year hofizon. 5 he is pondering two portiolios, the Ss \(...
-
1. Investigate SCR's Web site and learn about the company's history, purpose, and values. Is the site user-friendly? Why or why not? Provide at least four improvements you would suggest to Jesse. 2....
-
Preston Chemical has spent $243,000 to refine 73,000 L of acetone, which can be sold for $2.00/L. Alternatively, Preston Chemical can process the acetone further to yield a total of 58,000 L of...
-
Consider Knight Fashion from S8-5. Assume once again that all fixed costs are unavoidable. If Knight Fashion drops one of the current departments, it plans to replace the dropped department with a...
-
The parabolic trough collector (Camacho, 2012) is embedded in a unit feedback configuration as shown in Figure P7.1, where G(s) = GC(s)P(s) and a. Assuming G C (s) = K, find the value of K required...
-
Calculate productivity for the private warehouse comparing existing productivity and productivity if robots were leased. Round your answers to two decimal places. 19 20 21 22 # of dedicated pickers...
-
Cormorants are large waterbirds, with webbed feet, long necksand hooked bills. They spend most of their time swimmingunder water to catch food (mainly fish). Off of theNorthwest coast of North...
-
What is the difference between a cation and an anion? What are the bonds that hold water molecules together? (not theatoms [covalent bonds], but the molecules) What are the bonds that allow a...
-
A cylindrical (Ao = 1cm2) piece of high molecular weight (entangled) silly putty (polydimethylsiloxane (PDMS), Tg = -130 C) is instantaneously stretched in tension at room temperature with an applied...
-
If $17,000 is invested at 9% per year, in approximately how many years will the investment double?
-
All of the following ratios are useful in detecting large revenue frauds except: a. Gross profit margin. b. Current ratio. c. Working capital turnover. d. Accounts receivable turnover.
-
On August 31, 2012, the balances of the accounts appearing in the ledger of Wood Interiors Company, a furniture wholesaler, are as follows:Prepare the August 31, 2012, closing entries for Wood...
-
For the systems shown in Figures P3.28. (a) Determine the damping ratio (b) State whether the system is underdamped, critically damped, or overdamped (c) Determine \(x(t)\) or \(\theta(t)\) for the...
-
A company fabricates a component at a cost of $6.00. A supplier offers to supply the same component for $5.50. Under what circumstances is it reasonable to purchase from the supplier?
-
A company fabricates a component at a cost of $6.00. A supplier offers to supply the same component for $5.50. Under what circumstances is it reasonable to purchase from the supplier?
-
Many fast-food restaurant chains, such as McDonalds, will occasionally discontinue restaurants in their system. What are some financial considerations in deciding to eliminate a store?
-
If 57% of the people in a community use the emergency room at a hospital in one year, a sample of 11 people use the emergency room. Find the probability of at least 5 people use the emergency room. O...
-
Data validation works for setting a reasonable range for _______. a. Both inputs and formulas b. Formulas c. Inputs d. All types of data
-
What is the science of fact-based decision making? A. Analytics B. Structured decisions C. Unstructured decisions D. Semistructured decisions
Study smarter with the SolutionInn App