Department on fabios overall net operating income

Assignment Help Financial Accounting

Reference no: EM13753424

Fabio Corporation is considering eliminating a department that has a contribution margin of $28,000 and $72,000 in fixed costs. Of the fixed costs, $15,000 cannot be avoided. The effect of eliminating this department on Fabio's overall net operating income would be:

A decrease of $44,000.

B. increase of $44,000.

d. decrease of $29,000.

e. an increase of $29,000.

Reference no: EM13753424

Questions Cloud

Suggest strategy and process for chief executive officer : As a newly minted CIO, you have been hired to join a company without a history of project best practices. Suggest strategy and process for your Chief Executive Officer (CEO) to develop standards for your organization that is without any such organ..

Interest in capital and profits and losses : Farmer contributed land to an LLC in exchange for a 34% interest in capital and profits and losses. Farmer’s basis in the property was $300,000 and its fair market value was $540,000. Contractor contributed his services and the use of his equipment f..

Almost a million people live in the salt lake area : In what ways does the environment limit human culture? Consider that Salt Lake City, Utah, has an average rainfall of only 15 inches but that almost a million people live in the Salt Lake area.

A cash discount is usually granted to all : A cash discount is usually granted to all of the following except

Department on fabios overall net operating income : Fabio Corporation is considering eliminating a department that has a contribution margin of $28,000 and $72,000 in fixed costs. Of the fixed costs, $15,000 cannot be avoided. The effect of eliminating this department on Fabio's overall net operating ..

Substance abuse may include alcoholics and drug users : Substance abuse may include alcoholics and drug users, their behavior will be different than other workers on the job. In what ways can alcohol and drug use affect job performance and career success? What are some ways that employees with alcohol and..

Economic forecasts by economists and financial experts : Analyze the current economic forecasts by economists and financial experts, and predict the impact on the interest rate term structure.

Describe the variable used to segment consumer markets : Describe the variable used to segment consumer markets. What type of market segmentation strategy is Marriott following? For each, relate specific examples of hotel services tailored to various target markets.

Effect of transaction on accounting equation : Jay pembroke started a buiness. During the first month (April 20--), the following tranactions occured. Show the effect of transaction on the individual accounts of the expanded accounting equation: Assets= Liabilities + Owner's Equity (Capital-Drawi..

User Account

All Pages