Answered step by step
Verified Expert Solution
Question
1 Approved Answer
confused on 25 thru 28. and the question about question 27. is the options for question 26. please help 25. Vanikord Corporatie Corporation Currently has
confused on 25 thru 28. and the question about question 27. is the options for question 26. please help
25. Vanikord Corporatie Corporation Currently has two divisions which had the food results for last year: Cork Division Sales $501,600 Variable costs 210,480 Contribution margin 291,120 Traceable fixed costs 133,200 Segment margin 157.920 Allocated common corporate fixed costs Rubber Division $396 800 300,320 96,480 66,800 29,680 90.800 51,600 Net operating income (loss) $67.120 ($21.920) Because the Rubber Division sustained a loss, the president of Vanikoro is considering the elimination of this division. All of the division's traceable fixed costs could be avoided if the division was dropped. None of the allocated common corporate fixed costs could be avoided. If the Rubber Division was dropped at the beginning of last year, how much higher or lower would Vanikoro's total net operating income have been for the year? a. $21.920 higher b. $45,200 higher c. $45,200 lower d. $29,680 lower 26. Barrus Corporation makes 38,000 motors to be used in the productions of its power lawn mowers. The average cost per motor at this level of activity is as follows: Direct materials $9.70 $8.70 Direct labor $3.55 Variable manufacturing overhead $4.50 Fixed manufacturing overhead This motor has recently become available from an outside Supplier for $24.55 per moto Barrus decides not to make the motors none of the fixed manufacturing overhead wound be avoidable and there would be no other use for the facilities. If Barrus decides continue making the motor how much higher or lower will the company's net operati income be than if the motors are purchased from the outside supplier? Assumewe from the outside supplier Assume that direct labor is a variable cost in this company. a. $72.200 lower b. $233,700 higher c. $98,800 higher d. S171,000 higher 27. Maack Corporation's contribution margin ratio is 17% and its fixed monthly expenses are $45,000. If the company's sales for a month are $301,000, what is the best estimate of the company's net operating income? Assume that the fixed monthly expenses do not change. a. $204,830 b. $256,000 c. $51,170 d. $6,170 28. Which of the following costs is least likely to be a variable cost? a. Sales commissions b. Direct labor c. Indirect materials d. Supervisory salariesStep 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