User Account

All Pages

How much better off or worse off will the firm be

Assignment Help Accounting Basics
Reference no: EM132832379

Problem 1: A firm is considering dropping the product line "ZZ". ZZ currently shows a loss of $100,000. The contribution margin for the product line is $120,000. Total fixed expenses are $220,000 of which 90,000 is unavoidable and $130,000 is avoidable. How much better off or worse off will the firm be if they keep product ZZ?

Option 1: Better off by keeping ZZ by $30,000
Option 2: Better off by keeping ZZ by $120,000
Option 3: Worse off by keeping ZZ by $10,000
Option 4: Better off by keeping ZZ by $10,000

Reference no: EM132832379

Questions Cloud

Practice of corporate risk management : I have mentioned the concept of "perfect market" in the supplemental note, and the implication of it on the practice of corporate risk management
What are the independent and dependent variables : What are the independent and dependent variables? Why were these statistical analyses chosen to answer the research questions?
What the dollar amount of merchandise inventory is : The current liabilities of the company are $45,000. Assuming there are no prepaid expenses, the dollar amount of merchandise inventory is
Identify the type of research used with the study : In 1,250 words, review research related to the topic area of the study chosen (some articles can be found in the Social Psychology Network site.
How much better off or worse off will the firm be : How much better off or worse off will the firm be if they keep product ZZ? A firm is considering dropping the product line "ZZ". ZZ currently shows
Explain which type of sampling was used : Explain which type of sampling was used. Note the sample size. Provide information on the data collection procedure(s) and operationalization of variables.
How might you address the barriers : What barriers (more than one) might prevent you from following the ASCA model? Explain your answer. How might you address these barriers? Explain your answer.
How site administrators strive to accommodate stakeholders : It is important to note that the first reaction most principals have to situations such as the one described in the case study is to deflect blame.
About possible career or completing additional education : Discuss the fundamental ways in which taking this course has affected your ideas about a possible career or completing additional education.

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