Stephens, Inc. is considering dropping a product line. During the prior year, the line had sales of $170,000, variable costs of $86,000 and total fixed expenses of $110,000. Of the fixed expenses, $95,000 are avoidable. If Stephens drops the product line, net operating income will ______.

Answers

Answer 1

Answer:

Increase by $11,000

Explanation:

The company will lose $84,000 in contribution margin ($170,000 - $86,000). If $95,000 of the fixed costs are avoidable, net income will increase by $11,000.

Answer 2

Out of the choices provided above, it can be concluded to state that the operating income will increase by $11,000 if the line had sales of $170,000, variable costs of $86,000 and total fixed expenses of $110,000, and of the fixed expenses, $95,000 are avoidable. Therefore, the option A holds true.

What is the significance of operating income?

Operating income can be referred to or considered as the income that is generated by an organization from the regular course of business operations, and does not include any special heads of income that do not add to the regular income of the firm.

The operating income is the difference between the total fixed costs and the contribution margin of the firm for a particular accounting year.

Operating Income = Avoidable Fixed Costs – Contribution Margin

Operating Income = 95,000 – 84,000

Operating Income = $11,000

Therefore, the option A holds true and states regarding the significance of operating income.

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Missing choices are added below.

A. Increase by $11,000

B. Decrease by $11,000

C. No Change

D. Decrease by $10,000


Related Questions

Jim makes a $1,000 deposit in an account paying 4% interest per year. He would like to withdraw two equal amounts: in one year and in two years. The amount Jim should withdraw in one year such that he will have the same amount at the end of the second year is close to:

Answers

Based on the amount that Jim deposited and the interest paid per year on the account, withdrawing in two equal amounts would require an amount of $530 per year.

How much should Jim withdraw per year?

Assuming the amount that can be withdrawn is x, the relevant formula would be:

(1,040 - x)  x 104 = 100x

Solving for x gives:

108,160 - 104x = 100x

108,160 = 100x + 104x

108,160 = 204x

x = 108,160 / 204

=  $530

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To raise awareness about issues important to you as a member of an interest group, during which stage of the policy-making process should you seek to approach policy makers

Answers

At early stage of policy making, one can raise awareness about issues important to you as a member of an interest group.

What is Interest groups?

Interest groups, isa group with members having shared knowledge as well as goals, and they advocate on behalf of particular political issues.

Therefore, during early stage of the policy-making process one can seek to approach policy makers.

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Cartels in the United States are a. legal if price is competitively determined. b. legal if all firms in the industry agree to the terms of the cartel. c. legal if all conditions of the cartel are made public. d. illegal.

Answers

It should be noted that Cartels in the United States are D. Illegal.

What is a cartel?

It should be noted that a cartel simply means an association of manufacturers with the purpose of restricting competition.

In this case, it should be noted that Cartels in the United States are illegal. This is because it gives unfair advantages to the manufacturers.

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Crimeco senior executives were involved in a massive fraud scheme to misrepresent their financial health. Faroq was employed by Crimeco as a regional manager and reported to state authorities about the fraud. Faroq is known in employment law as a/an

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The role of Faroq in Crimeco as a regional manager is known in employment law as a/an whistle-blower.

What is the role of an employment lawyer?

An employment lawyer is an individual that oversees, drafts, and prepares claims about all fraudulent activities and financial mismanagement in an organization. They also serve as an advisor to their clients.

From the information given, the role of Faroq in Crimeco as a regional manager is known in employment law as a/an whistle-blower.

This is because he is tasked with exposing and reporting to state authorities about all the massive fraud schemes carried out by the Crimeco Senior executives.

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In the short run, a firm operating in a monopolistically competitive market can earn a. positive economic profits. b. economic losses. c. zero economic profits. d. All of the above are possible

Answers

A firm operationg in a monopolistically competitive market can earn

a. positive economic profits

Monopolistically Competitive Market

Monopolistically competitive market is a type of market that has a range of similar products from different producers. In other words, the product of one firm can be a substitute to the products of other firms

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Which statement explains one way in which the transformation of india’s economy contradicts wallerstein’s world system theory?.

Answers

The statement that shows how India contradicts the theory is: Using a development strategy to avoid economic dependency,India develop their own industries and participate fully in the global economy.

What is the  wallerstein’s world system theory?

This is a theory that teaches that the world system is a social system that is made up of boundaries as well as rules.

According to the theory, there are conflicting forces that hold the system together and also tears it apart.

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Which of the following measures would a president adhering to Keynesian economic principles most likely employ during an economic recession?
i. A budget with significant cuts in federal spending on entitlement programs like Medicaid
ii. A budget that raises the federal interest rate from 1.65% to 1.8%
iii. A budget that cuts corporate income tax rates and decrease regulation of the economy
iv. A budget with significant additions of public work projects to provide employment for Americans without jobs

Answers

The measure that would be employed by the president is a budget that cuts corporate income tax rates and decrease regulation of the economy.

What is the president's response to a recession?

A recession is when the gross domestic product of a country for two consecutive quarters is negative. When there is a recession, the apporopriate response should be an expansionary policy.

Keynesian economics advocates for increasing consumer spending in a recession. This can be achieved through reducing taxes.

What may be a concern if you have an adjustable rate mortgage (arm)? a. after the initial fixed rate period, your rate may increase. b. your payment will constantly change during your initial fixed rate period. c. after the initial fixed rate period, your rate may decrease. d. a portion of your rate pays the commission of your mortgage broker. please select the best answer from the choices provided a b c d

Answers

The most appropriate concern in relation to the adjustable rate of the mortgage for the borrowers is the increase in rate after the initial fixed-rate period.

So, Option A is the correct answer.

What is the adjustable-rate mortgage?

ARM is the abbreviated form of adjustable-rate mortgage where the rate of interest variates over the life of a mortgage. There is a longer duration associated with the constant interest rate of an ARM at the time of taking the mortgage.

The interest rates in ARM are usually lower at the starting period but then rise or fall throughout its life. When the term of the mortgage expires, the lenders can easily modify the interest rates, that is, they can either increase or decrease the rates.  

Therefore, the rise in interest rates after the fixed period would be a concern for mortgage borrowers.

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In year 0 you buy a 2-year 4% coupon annual paying bond, with face value equal to $1000, and a YTM of 5%. After 1 year, the YTM falls to 4% and you sell the bond. What is the annualized holding period return on your investment? (choose the closest number)

Answers

Based on the face value, the YTM, and the coupon, the annualized holding period return on the bond is 6%.

What is the annualized holding period return?

This can be found as:

= (Present value of bond at year zero / Present value of bond at year 1) - 1

Using a spreadsheet it would be:

= ( (PV(0.04, 1 ,-0.04*1,000, -1,000) + 0.04 x 1,000) / PV(0.04, 2, -0.04x 1,000, -1,000)) - 1

= 6%

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Spicer Dentistry is considering the purchase of a new x-ray machine that costs $24,000 and has a useful life of 10 years. The new machine is expected to reduce operating costs by $4,000 per year. The payback period for the x-ray machine is

Answers

The payback period for the x-ray machine equals 6 years.

What is a payback period?

This means the period of time it will takes a firm to recover the cost of an investment.

Given data

Costs = $24,000

Useful life = 10 years

Reduce operating costs by $4,000

Payback period = $24,000 / 4000

Payback period = 6 years

Therefore, the payback period for the x-ray machine equals 6 years.

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In Exhibit 16-5, a shift in aggregate demand from AD 2 to AD 3: a. decreases real GDP, and raises the price level. b. decreases real GDP, and lowers the price level. c. increases real GDP, and lowers the price level. d. increases real GDP, and raises the price level. g

Answers

When there is a shift in aggregate demand from AD2 to AD3 in Exhibit 16-5, this d. increases real GDP, and raises the price level.

What happens when aggregate demand shifts to AD3?

The shift from AD2 to AD3 is a rightward shift which points to the fact that real GDP is increasing.

This would lead to a higher price level because AD3 will intersect with the aggregate supply curve at a higher price.

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When a department has no idle capacity and will interrupt their current level of sales to regular customers, the lowest acceptable transfer price to supply product to another division is ______.

Answers

The lowest acceptable transfer price at which the product can be supplied to the regular customer, during no idle capacity, is the selling price of the product.

What is idle capacity?

The idle capacity in terms of the manufacturing department can be understood as the remaining capacity held by the business over its regular production.

Thus, when a department has achieved its idle capacity due to which the current sales to the regular customer will hamper. In this case, the department cannot transfer or supply the product below its basic selling price.

Therefore, the selling price can be taken as the lowest acceptable transfer price.

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Developing an understanding of cultural implications can greatly improve workplace interactions in the long run, resulting in improved relationships with diverse a. suppliers. b. customers. c. employees. d. all of the above

Answers

Developing an understanding of cultural implications can greatly improve workplace interactions in the long run, resulting in improved relationships with suppliers, customers and employees.

What are cultural implications?

The impacts of a policy, event, activity or movement on a particular culture are referred to as cultural implications.

External and internal events can weaken, change, or reinforce specific parts of a culture, affecting the success of cultural globalization.

In the long term, developing a cultural knowledge can considerably improve workplace interactions, resulting in improved connections with suppliers, customers, and employees.

Therefore, option D is correct.

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Which type of utility can only be added by the maker of the product?
A. Place utility
B. Possession utility
C. Form utility
D. Time utility

Answers

C. Form utility is the one that can only be added by the maker of the product

Answer:

C

Explanation:

Trust me i just took the test

_____ encompasses purchases of fixed assets abroad used in the manufacture and sales of goods and services.

Answers

Answer:

The correct answer is called capital goods. Give me Brainiliest

The monopolist's demand curve is: a. identical to the market demand curve. b. identical to the marginal revenue curve. c. below the marginal revenue curve. d. a horizontal line at the market price. e. a U-shaped curve.

Answers

The monopolist's demand curve is identical to the market demand curve.

Who is a monopolist?

Monopolist is an individual or a firm that produces goods, render services and also have control over the product that they produce.

They are not involved in competitive market but always look out for policies that will favor their market.

Therefore, The monopolist's demand curve is identical to the market demand curve.

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The ability of one country to produce a good or service more efficiently than another is called a(n) _____.

Answers

Answer:

absolute advantage

Explanation:

the answer is absolute advantage know the explanation for it .

The three largest manufacturers of telecommunications wire conspired together so that all three firms would charge the same price for coaxial cables. This is an example of

Answers

When companies conspire together to charge the same price for a product, it is an example of price fixing.

What is price fixing?

It is an agreement established between companies with the objective of controlling the price levels of a product or service, which can influence the increase, decrease and stabilization of the price. This is an illegal strategy that can generate inflation and market monopolization.

Therefore, price fixing must be fought by antitrust laws, as this action does not serve the interests of consumers, increases entry barriers and disturbs the normality of supply and demand.

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Sherry is trying to increase her daily exercise. She has downloaded an application on her phone that tracks how far and how long she walks in the evenings. Based on the components of self-regulation, which part of the process is she implementing

Answers

Based on this information and the components of self-regulation, Sherry is implementing self-evaluation.

What are self-regulation?

It is the ability to analyze the environment and the set of processes that we carry out in order to successfully manage ourselves whose components are self-observation, self-evaluation and self-reinforcement.

Self-evaluation component refers to the fact that the person determines some criteria that mark or guide the objectives that he wants to achieve, these criteria can contrast whether the change in behavior is the one he is looking for or not, according to his objectives.

Therefore, we can conclude that based on this information and the components of self-regulation, Sherry is implementing self-evaluation.

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If the multiplier is 6 and if there is no crowding-out effect, then a $60 billion increase in government expenditures causes aggregate demand to

Answers

If the multiplier is 6 and if there is no crowding-out effect, then a $60 billion increase in government expenditures causes aggregate demand to none of the above.

What is the crowding-out effect?

The crowding-out effect is an economic theory that claims that increased public spending reduces or eliminates private spending.

The crowding-out effect occurs when higher interest rates cause a decrease in private investment spending, dampening the initial increase in total investment spending.

Thus, the correct option is D, none of the above.

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Jonah purchases a new flat screen television and declines the extended service plan. What risk management strategy is he employing

Answers

Jonah adopts the strategy of risk avoidance, to manage its risk and therefore declines the extended service plan.

What do you mean by Risk Management Strategy?

The risk management strategy provides a systematic and consistent approach to risk identification, assessment and management.

Risk avoidance is a way for businesses to reduce their risk level by not engaging in certain high-risk activities. While it is impossible to eliminate all risks, a risk avoidance strategy can help prevent some losses from occurring.

Thus,the risk management strategy that Jonah is employing Risk avoidance.

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________ involves creating a video, e-mail, mobile message, advertisement, or other marketing event that is so infectious that customers will seek it out or pass it along to their friends

Answers

The means that involves creating a video, email, mobile message, advertisement, or another marketing event that is so infectious that customers will seek it out or pass it along to their friends is Viral Marketing.

What do you mean by marketing?

Marketing refers to the activities undertaken by a company for promoting the buying or selling of a product.

Viral marketing refers to spreading information about any product or service from person to person by word of mouth or sharing via the internet or email.

Viral marketing will increase a company's reach and customer base.

Therefore, viral marketing is the correct choice.

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After taking out a one-year loan with an annual interest rate of 5 percent, Pranav pays $2,100 back to the bank. The principal of the loan was _______ and the interest payment was _______

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The Pranav took the loan for one year and repay it with the amount of $2,100. Then the principal of the loan was $1,400 and the interest payment was $700, it is computed by the help of compound interest.

What is compound interest?

Compound interest is defined as Interest on interest, or compound interest. It is the adding of interest to the principal sum of a loan or deposit.

It is the outcome of reinvesting interest rather than paying it out, so that interest is received on the principal plus previously collected interest in the next period.

The formula of compound amount is:

[tex]\text{Amount (A)} = \text{Principal(P)}(1+ i)^n -1[/tex]

Where,

i = Interest Rate

n = Number of time Period

Computation of Principal and interest:

According to the given information,

A =  $2,100

i = 5%

Now, apply the given values in the above formula:

[tex]\text{A} = \text{P}(1+ i)^n -1\\\\\$2,100 = \text{P}(1+ 5\%)^1 -1\\\\\text{P}=\$1,400[/tex]

Then, the interest payment would be:

[tex]\text{Interest} = \text{Amount-Principal}\\\\\text{Interest} = \$2,100-\$1,400\\\\\text{Interest} = \$700[/tex]

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How have your planning/drafting/writing strategies and critical thinking practices evolved this semester

Answers

The answer here is a comparison of your planning, drafting, writing strategies, and critical thinking practices this semester with those of another semester.

How do you do a comparative analysis?

Write each subject as a different subheading, then using a tabular form first, highlight similarities.

Then, you proceed to highlight the differences. You can then write a summary of the similarities and the differences. It can be advantageous to highlight the reasons for the variations in your summary.

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Stephanie supervises a call center department that receives stress-producing calls from unhappy customers. Turnover has increased by 33 percent over the last four months. Stephanie is understanding and patient with her staff, and tells them she knows what they’re going through because it wasn’t so long ago that she took those calls. How would stephanie’s staff describe her style?.

Answers

Stephanie’s staff describe her style as being understanding Sympathetic or  Empathetic

What is Empathy?

Empathy can be defined as the ability to show understanding of what other persons are going through based on ones personal experience on similar issue.

It is also worthy of note that sympathy is showing concern over what we have not experienced

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MC Qu. 15 In a direct claim, you should close with In a direct claim, you should close with Multiple Choice an expression of goodwill. a restatement of the problem. details backing the claim. an apology. a deadline for a response.

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In a direct claim, there will be a deadline for responding, usually 30 days from the date of submission and receipt of the notification.

What is a direct claim?

It is any claim by an indemnified person that is not a third party, where there is a notification and a deadline for responding to the claim, which within a period of 30 days can be negotiated for the resolution of the problem.

Therefore, the response period must be considered by the receiver, if this is rejected, it is up to the applicant to seek resolution in court.

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Match each word with the phrase that best defines it.

Answers

Answer:

1) A 2) B 3) D 4) C

Explanation:

You see you take them and think what they could mean like "reliable" means to trust or confide yourself to that person/place/or/and thing.

The primary purpose of a ____ meeting is to identify and resolve problems. Group of answer choices technical design review problem-solving communications flow status review

Answers

The primary purpose of a review and problem-solving meeting is to identify and resolve problems.

What is a meeting?

Meeting involves group of people coming together for a particular reason. It could be to resolve a particular problem, or to organize and plan a program and to share relevant information partaining to the problem.

Therefore,the primary purpose of a review and problem-solving meeting is to identify and resolve problems.

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Which balance sheet line item will help explain a difference between net income on the income statement and cash from operating activities on the statement of cash flows?.

Answers

Accounts receivable will help explain a difference between net income on an income statement and cash from operating activities on the statement of cash flows.

What is an income statement?

An income statement refers to a financial document which is typically used to record the amount of money (income or revenues) that are entering into a business.

Generally, accounts receivable is a balance sheet line item which can be used by an entrepreneur or business firm to explain a difference between net income on an income statement and cash that were collected from customers (operating activities) on the statement of cash flows.

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Pricing approaches that consider the production and marketing costs and then add enough to cover direct expenses, overhead, and profit are Blank______ approaches

Answers

Answer:cost oriented

Explanation:

Cost-oriented pricing strategies include direct costs, overhead, and profit before taking into account the costs of production and marketing.

What are the strategies?

A plan outlines the ways by which the outcomes (goals) will be accomplished (resources). Strategy can be predetermined or it can develop organically when an organization competes or changes its surroundings. It entails tasks like strategic planning and strategic thought.

A strategy is "a plan of action designed to attain a long-term or overall purpose," according to the Oxford Dictionary. The practice of organizing and controlling all military actions and movements during a conflict or combat.

A strategy describes the long-term objectives of a company and how it intends to achieve them. In other words, it demonstrates the route to take in order to realize the stated goal. A tactic is a precise action that is used to accomplish a goal in accordance with a strategy.

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