Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Tater Mariboring ca. has three dr00: wich are competih nach othecling lightly different produits. Annual results inding perunt sales Show 1 OMSOR 13 Sele: 600CS18
Tater Mariboring ca. has three dr00: wich are competih nach othecling lightly different produits. Annual results inding perunt sales Show 1 OMSOR 13 Sele: 600CS18 10.000 $15 11000052 Ver. CUL SE per unit So per unit 50 per unit d.net 11,12 RICE $19.00 To compary beines that it it dropa masina sa mwenye urataan anrs of van wil noras by 2000 unts Arvelysis is als bis 992,000 of fixed vols relatira Division de salle fut the competisi Divisivi Discloset. The indetenkel effecerile in care elite company it it les man will be Saint a. Ueclecul 580.000 6. Anies of 332000 decrease T 520.000 d. A decresse o 550.000 Acebe of $26,000 Lawler Manufacturing Co. has three divisions which are in competition with each other, selling slightly different products Annual results induding petunitas show: Division A Division B Division Sales 6,000@$18 10,000@$15 14,000 @$12 Var, cost $8 per unit $6 per unit $8 per unit Fixed cost $11,000 $48,000 $15,000 The company believes that if it drops Division B, sales of Division A will increase by 2000 units and sales of Division will increase by 2000 unit Analysis reveals that $32,000 of fixed costs relating to Division B are avoidable for the company if Division B is closed. The incremental effect on the income of the company if it closes Division B will be: Select one: a. A decrease of $90,000 b. An increase of $32,000 c. A decrease of $20,000 d. A decrease of $58,000 e. A decrease of $26.000
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