The annual results of a company with three departments are as follows. Head office fixed costs have
Question:
The annual results of a company with three departments are as follows.
Head office fixed costs have been apportioned on the basis of the respective sales of the departments and will not be reduced if any department is closed. Which action should the company take, based on these results?
A. Close department Y
B. Close departments Y and Z
C. Close department Z
D. Keep all the departments open
Transcribed Image Text:
Department to osny bronber sie bez zobubor $ ilig lan $TORBUNES 210 000 100 000 75 000 35 000 Sales Less: variable costs head office fixed costs Net profit (loss) on our 100 000 80 000 35 000 (15 000) 140.000 90 000 50 000 0
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 50% (4 reviews)
To determine which action the company should take based on the given results you should consider the ...View the full answer
Answered By
Abdul Wahab Qaiser
Before working at Mariakani, I volunteered at a local community center, where I tutored students from diverse backgrounds. I helped them improve their academic performance and develop self-esteem and confidence. I used creative teaching methods, such as role-playing and group discussions, to make the learning experience more engaging and enjoyable.
In addition, I have conducted workshops and training sessions for educators and mental health professionals on various topics related to counseling and psychology. I have presented research papers at conferences and published articles in academic journals.
Overall, I am passionate about sharing my knowledge and helping others achieve their goals. I believe that tutoring is an excellent way to make a positive impact on people's lives, and I am committed to providing high-quality, personalized instruction to my students.
0.00
0 Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
For more than 40 years, the Harnswell Sewing Machine Company has manufactured industrial sewing machines. The company specializes in automated machines called pattern tackers that sew repetitive...
-
Write a check (Figure 4 - 42) dated June 13, 20XX, to Byron Johnson in the amount of $296.83 for a washing machine, Complete the check stub. Figure 4 - 42 456 456 Amount To For KRA, INC 2596 Jason...
-
This exercise should be used with Exercise 1-21A. Refer to the data of Mary Burke Banking Company in Exercise 1-21A. Requirements 1. Prepare the income statement of Mary Burke Banking Company for the...
-
Effective interest rate. State the rate per period and the number of periods in the following: a. 12 percent per year, for 5 years, compounded annually b. 12 percent per year. for 5 years, compounded...
-
Comparing weight-loss treatments. Twenty overweight females have agreed to participate in a study of the effectiveness of 4 weight-loss treatments: A, B, C, and D. The researcher first calculates how...
-
Zucca Associates, a law firm, hires Attorney Odessa Smythe at an annual salary of $ 192,000. The law firm expects her to spend 2,400 hours per year performing legal work for clients. Indirect costs...
-
You will imagine a newly established SERVICE COMPANY as of Jan 01, 2015. You will start and finish the Accounting Cycle according with the below instructions. You should prepare your Semester...
-
Angelicus and Co. manufactures three different qualities of lock, Domestic, Commercial and Industrial. The company's results for the year ended 31 March 2003 were as follows. Fixed overheads are...
-
Production of 5000 units of Product Q is planned. The following information is given. Required (a) Calculate: (i) The break-even point of product Q in terms of units and revenue (ii) The margin of...
-
Margaret Avery Company from time to time embarks on a research program when a special project seems to offer possibilities. In 2011, the company expends $325,000 on a research project, but by the end...
-
Consider a two-period model in which an individual needs to decide how much to consume in the present, c, and how much to consume in the future, c. The individual receives income, y, in the present,...
-
Koopman Company began operations on January 1, 2015, and uses the FIFO inventory method for financial reporting and the average cost inventory method for income taxes. At the beginning of 2017,...
-
Assume you have been given $400,000 CAD with access to all listed stocks, bonds, futures, and options worldwide. You can trade in options and futures, in combination with the underlying asset....
-
1.Basis of Islamic Accounting Theory The history of the birth of Islamic accounting is inseparable from the development of Islam, the obligation to record non-cash transactions (see QS. Al-Baqarah:...
-
What kind of information can you provide from the label on the door frame of a car? A scene of a car from drivers side a. factory recommended mileage a year b. factory recommended tire pressure c....
-
Write a letter to one of your favorite relatives that will help dispel any notion they may have about radioactivity being something new in the world. Briefly discuss the role of radioactivity in...
-
What are the principal differences among asset liquidity management, liability management, and balanced liquidity management?
-
The balance in Jansen Companys work-in-process inventory account was $300,000 at the beginning of March. Manufacturing costs for the month are as follows: Required: a. Prepare separate journal...
-
The balance in Burt Companys finished goods inventory account was $25,000 at the beginning of September. Cost of goods manufactured for the month totaled $17,000, and cost of goods sold totaled...
-
Milan Company had the following activity for the year ended December 31. Required: Prepare an income statement for year ended December 31. Sales revenue $5,000,000 $ 825,000 Selling expenses $...
-
What is Coke's average ownership percentage in its equity method investments? Goodwill is 7000 Calculate the firm's current ratio (current assets/current liabilities). Calculate the current ratio...
-
John has to choose between Project A and Project B, which are mutually exclusive. Project A has an initial cost of $30,000 and an internal rate of return of 16 percent. Project B has an initial cost...
-
Complete the table below, for the above transactions
Study smarter with the SolutionInn App