User Account

All Pages

Discuss the freed-up resources to increase sales of product

Assignment Help Accounting Basics
Reference no: EM131786272

The following information is for X Company's two products - A and B:

Product A Product B
Total contribution margin $35,600     $39,060    
Contribution margin rate 40%     42%    
Fixed costs $56,110     $31,510    
Profit $-20,510     $7,550    

10% of Product A's fixed costs are allocated; 10% of Product B's fixed costs are allocated. The unallocated fixed costs are directly related to the individual products.

The company is considering dropping Product A because of the $20,510 loss. If X Company drops A, it will use the freed-up resources to increase sales of Product B by $15,000, but there will be additional fixed costs of $2,400. If X Company drops A, firm profits will change

Reference no: EM131786272

Questions Cloud

Operating costs with the current machine : The current machine can be sold immediately for $20,000. Operating costs with the current machine
What is the standard deviation of the sample means : Consider all random samples of 6 4 test score s. What is the standard deviation of the sample means ? (Round your answer to three decimal places)
What is the probability that the sum of the two : What is the probability that the sum of the two rolls is equal to 7 given that the first one is an odd number ? Show all work. Just the answer
What is the pv time zero of a perpetuity : Delayed Perpetuity: A delayed perpetuity is simply a perpetuity. What is the PV time zero of a perpetuity if the first payment begins at period t?
Discuss the freed-up resources to increase sales of product : The company is considering dropping Product A because of the $20,510 loss. If X Company drops A, it will use the freed-up resources to increase sales of Product
Prepare the journal entries to reflect all pension plan : Prepare the journal entries (from the worksheet) to reflect all pension plan transactions and events at December 31 of each year
Test the claim that there is difference in the mean ages : The data are given below. Test the claim that there is difference in the mean ages of the two groups. Use a = 0.01.
How the net income for these five years was distributed : Prepare schedules showing how the net income for these five years was distributed to the two classes of stock if in each of the years the entire current.
How established airlines can differentiate their customer : What opportunities are there for established airlines to improve their competitive position through differentiation strategies?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd