Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on May 31, 2024

ABC Company is considering discontinuing a product. The costs of the product consist of $20,000 in fixed costs and $19,000 in variable costs. The fixed

ABC Company is considering discontinuing a product. The costs of the product consist of $20,000 in fixed costs and $19,000 in variable costs. The fixed costs are depreciation on the building. What is the cost effect of discontinuing the product?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Cost Accounting

Authors: William Lanen, Shannon Anderson, Michael Maher

5th edition

978-1259728877, 1259728870, 978-1259565403

More Books

Students also viewed these Accounting questions

Question

★★★★★

(a) A proton is moving at a speed much slower than the speed of light. It has kinetic energy K1 and momentum P1. If the momentum of the proton is doubled, so P2 = 2p1 how is its new kinetic energy K2...

Answered: 1 week ago

Question

★★★★★

Calculate the future value of the increasing annuity. 1. At the end of each half year, for 5 years, $1500 is deposited into an investment paying 2.6% interest compounded semiannually. 2. At the end...

Answered: 1 week ago

Question

★★★★★

Using the creative thinking guidelines, think about how you would increase the usage of products or services if you were the manager of: a. Doritos b. Charles Schwab e. GAP

Answered: 1 week ago

Question

★★★★★

Discuss three applications of Skinners research.

Answered: 1 week ago

Question

★★★★★

Identify several courses of action that Tamira could have taken instead of the one she took?

Answered: 1 week ago

Question

★★★★★

Why do we subtract depreciation in the calculation of EBIAT if we are going to add it back as the next step of the Free Cash Flow formula?

Answered: 1 week ago

Question

★★★★★

This is a multi answer question 10.3.25-BE Assigned Media Use the table, which gives the total Cross- Year Aerobic Basketball amounts of sales (in millions of dollars) Training Walking for aerobic,...

Answered: 1 week ago

Question

★★★★★

Assume food delivery firms like Swiggy are making huge profits. Higher profits may attract the entry of new firms into the food delivery industry. Explain what could be the impact of entry on the...

Answered: 1 week ago

Question

★★★★★

"This problem has such a simple solution. Why are we spending so much time discussing this? I could have been finishing my work instead of wasting my time here," thought Lamar while attending a...

Answered: 1 week ago

Question

★★★★★

Time Dilation: An astronaut travels at a speed of 0.95c away from Earth. The astronaut sends a light signal back to Earth every 1.0 s, as measured by her clock. An observer on Earth notes that these...

Answered: 1 week ago

Question

★★★★★

Suppose Coca-Cola and Pepsi-Cola, who do not communicate, are engaged in a sales game and each firm seeks to maximize profit. The firms set high price or low price. If both set high price, each makes...

Answered: 1 week ago

Question

★★★★★

Mal Co currently sells 25 styles of sports watches. The market has remained static with an overall revenue of $50 million. Mal Co is always trying to bring out new designs and colours to try and...

Answered: 1 week ago

Question

★★★★★

what is cash flow and how you understand cash flow

Answered: 1 week ago

Question

★★★★★

Federated Shipping, a competing overnight delivery service, informs the customer in Problem 65 that they would ship the 5-pound package for $29.95 and the 20-pound package for $59.20. (A) If...

Answered: 1 week ago

Question

★★★★★

Use and evaluate the two main discounted cash flow (DCF) methods, the net present value (NPV) method, and the internal rate-of-return (IRR) method

Answered: 1 week ago

Question

★★★★★

On March 3, 1993 the common stock price of Leslie Fay, the nations second largest maker of womens apparel, dropped from 12 3/8 to 5 1/4, when it was discovered that reported profits of $23.9 million...

Answered: 1 week ago

Question

★★★★★

Forbes (June 20, 1994) reports: Yes, there are hidden reserves in Switzerland, Germany and Sweden. But that doesnt mean that there is more to these companies than meets the eye. Loosey-goosey...

Answered: 1 week ago

Previous Question Next Question