User Account

All Pages

What would be the effect on the companys overall net income

Assignment Help Accounting Basics
Reference no: EM131792047

Problem

The management of Heider Corporation is considering dropping product J14V. Data from the company's accounting system appear below:

  Sales

$940,000

  Variable expenses

$379,000

  Fixed manufacturing expenses

$361,000

  Fixed selling and administrative expenses

$241,000

In the company's accounting system all fixed expenses of the company are fully allocated to products. Further investigation has revealed that $215,000 of the fixed manufacturing expenses and $176,000 of the fixed selling and administrative expenses are avoidable if product J14V is discontinued. What would be the effect on the company's overall net operating income if product J14V were dropped?

Reference no: EM131792047

Questions Cloud

Indicate the reason and the type of audit report : Ahmad Computers is suing your client, Excellent Software, for royalties over patent infringement. Excellent Software's external legal counsel assures
Discuss epidemiology as the scientific basis : Discuss epidemiology as the scientific basis for clinical medicine and guideline development. Explain some types of data, performance measurements
Compute total amount of interest revenue hammer will earn : What is the total amount of interest revenue Hammer will earn over the life of the note
Why the romantic era provides a useful starting point : BRIEFLY (in 1-3 sentences) explain why the Romantic Era provides a useful starting point for understanding the history of literary controversies
What would be the effect on the companys overall net income : The management of Heider Corporation is considering. What would be the effect on the company's overall net operating income if product J14V were dropped?
What was basic eps rounded to the nearest penny : During 2014, Petrock paid dividends of $1 per share on its common stock and $2.40 per share on its preferred stock. The preferred stock is convertible.
Effective direct-interactive marketing for beauty industry : What do you think is the most effective direct or interactive marketing for the beauty industry? Why?
How urban planning involving communities in disaster : How urban planning involving communities in disaster reducing risks.The advantages and the limitations of urban planning in Kathmandu, Nepal.
Define the time value of money : Define the time value of money. Provide a real-world example for the time value of money. Why is time such an important factor in financial matters

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