Valdez Company is considering eliminating its kitchen division, which reported an operating loss of $60,000 for...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Valdez Company is considering eliminating its kitchen division, which reported an operating loss of $60,000 for the past year as shown below. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) Mutiple Choice If the kitchen division is dropped, all $879.000 of its variable costs are avoidable, and $216.600 of its foxed costs are avoidable. The impact on Vaider's come from eliminating this business segment would be $310,800 decrease $84,400 increase $ 1,180,000 879,000 $301.000 increase 301.000 361,000 $ (60,000) Valdez Company is considering eliminating its kitchen division, which reported an operating loss of $60,000 for the past year as shown below. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) Mutiple Choice If the kitchen division is dropped, all $879.000 of its variable costs are avoidable, and $216.600 of its foxed costs are avoidable. The impact on Vaider's come from eliminating this business segment would be $310,800 decrease $84,400 increase $ 1,180,000 879,000 $301.000 increase 301.000 361,000 $ (60,000)
Expert Answer:
Answer rating: 100% (QA)
Question Step 1 Given that kitchen division has 600... View the full answer
Related Book For
Managerial Accounting
ISBN: b010ikdqzm
10th Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac
Posted Date:
Students also viewed these accounting questions
-
For the past year I have spent about $4 a day for lunch, give or take a quarter or so. (a) Draw a rough sketch of this distribution of daily expenditures. (b) If, without looking at the bill, I paid...
-
Moon Company is considering eliminating its Drapery Department. Management does not believe the indirect expenses and the level of operations in the other departments will be affected if the Drapery...
-
AirParts Corporation reported an operating loss of $25 million for financial reporting and tax purposes. Taxable income last year and the previous year, respectively, was $20 million and $15 million....
-
Refer to Exercise. a. Are the required conditions satisfied? b. Is multicollinearity a problem? If so, explain the consequences.
-
What are some of the features of Extreme Programming (XP)?
-
The Federal Trade Commission objected to the California Dental Associations prohibitions against its members engaging in advertising about prices, calling them restraints on trade. What effect should...
-
Net present value and net present environmental impact added have a number of similarities and differences. List and explain these. Consider the arguments for and against discounting future...
-
Tropical Sun Ltd. makes suntan lotion in two stages. The lotion is rst blended in the Blending Department and then bottled and packed in the Bottling Department. The following information relates to...
-
Environmental issues, including climate change, are increasingly discussed in the executive suite as it relates to strategy formulation and implementation. Questions like how "green" a company should...
-
Sarah Smith is the marketing manager for Activa. She decides to run a sales promotion to boost the brand's business and is interested in evaluating the success of the promotion. The following is key...
-
1. What could be an idea for making a ad that has the text " you miss 100% of the shots you don't take. the ad is for basketball fans and team 2. What could be an ad idea for a city being loud and...
-
Banks do not create money because this is the RBA's (Reserve Bank of Australia) responsibility'. Do you agree or disagree with the statement? Explain what economics concept(s) embody RBA policies.
-
How much money will you have in 4 years if you invest $19,000 at a 5.3% annual rate of interest compou quarterly? How much will you have if it is compounded monthly? If the interest is compounded...
-
Rita decided to invest the stock market and decided to Purchase 100 shares of stock for $20 per share. During the year, Rita received dividend cheques amount of $150. After 3 years, Rita sold the...
-
The expected return of the portfolio consisting of stock 1 and 2 is
-
Prompt For this assignment, analyze the diversification strategy of either Disney or Kimberly-Clark using the documents linked within your Soomo webtext. Explain how critical thinking applies to...
-
This discussion assignment examines variable scope. For this assignment, we will be examining the Beverage2 class (an updated version of the Beverage class from discussion 1), its subclass Espresso,...
-
Describe basic managerial approaches to implementing controls and how these are implemented.
-
Eastern Railroad Company transports commodities among three routes (city-pairs): Atlanta/Baltimore, Baltimore/Pittsburgh, and Pittsburgh/Atlanta. Significant costs, their cost behavior, and activity...
-
My-Phone Inc. manufactures and assembles two major types of telephone assemblies a desk phone and a cellular phone. The process consists of a just-in-time cell for each product. The data that follow...
-
The management of Eastern Railroad Company introduced in Exercise 5-20 improved the profitability of the Atlanta/Baltimore route in June by reducing the price of a railcar from $512 to $464. This...
-
If the least-squares regression line has slope b1 = 5, and two x-values differ by 3, the predicted difference in the y-values is _____________________. In Exercises 57, fill in each blank with the...
-
For each of the following plots, interpret the y-intercept of the least-squares regression line if possible. If not possible, explain why not. a. The least-squares regression line is = 1.98 +...
-
Substituting the value of the explanatory variable for x in the equation of the least-squares regression line results in a prediction for y. In Exercises 812, determine whether the statement is true...
Study smarter with the SolutionInn App