Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 28, 2024

Iya company plans to discontinue a department with the following average monthly operating costs: Sales120,000 Variable cost 70,000 Contribution margin50,000 Fixed cost 80,000 Operating loss(30,000)

Iya company plans to discontinue a department with the following average monthly operating costs:

Sales120,000

Variable cost70,000

Contribution margin50,000

Fixed cost80,000

Operating loss(30,000)

If the department is discontinued, 35,000 of the fixed cost could be eliminated.

What would be the effect (increase/decrease) of the discontinuance of the department on Iya Company's pretax profit?

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

Management Accounting

Authors: Late RC Sekhar, AV Rajagopalan

1st Edition

195683609, 978-0195683608

More Books

Students also viewed these Accounting questions

Question

★★★★★

Describe the empirical evidence of the relationship between Medicaid expansions and improved childrens health. How cost-effective have these Medicaid expansions been? Explain your answer.

Answered: 1 week ago

Question

★★★★★

If two people, $A$ and $B$, pull on opposite ends of a rope that is at rest, each exerting a horizontal tensile force of magnitude $F$, the tension in the rope is $\mathcal{T}=F$. Suppose...

Answered: 1 week ago

Question

★★★★★

Draw a dotplot for the n = 5 measurements 2, 9, 11, 5, 6. Find the sample mean and compare its value with what you might consider the "centre" of these observations on the dotplot.

Answered: 1 week ago

Question

★★★★★

On February 12, 5,000 shares of Mid-Ex Company are acquired at a price of $24 per share plus a $200 brokerage fee. On April 22, a $0.36-per-share dividend was received on the Mid-Ex Company stock. On...

Answered: 1 week ago

Question

★★★★★

Investment X offers to pay you $5,300 per year for 9 years, whereas Investment Y offers to pay you $7,800 per year for 5 years. If the discount rate is 4 percent, what is the present value of these...

Answered: 1 week ago

Question

★★★★★

Compute a depth-two decision tree for the training data in table 1 using the Gini function, C(a) = 2a(1 a) as described in class. What is the overall accuracy on the training data of the tree? XYZ...

Answered: 1 week ago

Question

★★★★★

6) Helton Company has the following information for the current y Beginning fixed manufacturing overhead in inventory Beginning variable manufacturing overhead in inventory Ending variable...

Answered: 1 week ago

Question

★★★★★

Online Lab: Mirrors, Lenses and Image Formation Name: Date: Ray Tracing for Mirrors 1. Is the diagram above a Concave or a Convex Mirror? 2. Which color is the Ray I in the ray diagram? 3. Which...

Answered: 1 week ago

Question

★★★★★

1) This is a graph of the horizontal displacement of a pendulum on Earth as a function of time. Displacement vs. Time for a Pendulum +1.0 m Displacement (m) 0 - 1.0 m 2.00 4.00 6.00 Time ($) a) On...

Answered: 1 week ago

Question

★★★★★

Challenges accountable care organizations (ACO) might face include issues of governance and leadership, and: Select all that apply a) Building trust b) Shared goals c) Managing potential conflict d)...

Answered: 1 week ago

Question

★★★★★

Question 1 (a2) What is the reaction force Dx in [N]?

Answered: 1 week ago

Question

★★★★★

1. What issues did Norway, Saudi Arabia, and the United Kingdom face as oil-dependent nations, and what strategies and measures were implemented to address them? 2. What issues did Venezuela,...

Answered: 1 week ago

Question

★★★★★

2. In this chapter, the reader should reflect on the following concepts: Context, winwin, win-lose, ambiguity, mental model, point of reference.

Answered: 1 week ago

Question

★★★★★

2. In this chapter, the reader should reflect on the following concepts: Patterns, symmetrical relationships, complementary relationships.

Answered: 1 week ago

Question

★★★★★

1. To provide insight into how setting an overly narrow boundary can give a mes-sage a specific meaning, while setting a wider boundary can give a completely different meaning.

Answered: 1 week ago

Previous Question Next Question