Which division should be closed and why

Assignment Help Financial Accounting
Reference no: EM13875819

1. Explain the difference between the engineered-cost and discretionary-cost approaches to evaluating support departments.

2. Manuel Inc. produces textiles in many different forms. After recording lower than anticipated profits last year, Manuel has decided to shut down one of its divisions that is not performing well. The accounting manager has compiled the following data on the two divisions being considered for closing and asked you to evaluate the short-term and long-term effects on profits of closing each division. Which division should be closed and why?


Winter Outerwear

High End Suits

Net revenues

$1,000,000

$5,000,000

Variable costs

500,000

2,000,000

Contribution margin

500,000

3,000,000

Controllable fixed costs

0

2,000,000

Controllable margin

500,000

1,000,000

Noncontrollable fixed costs

750,000

1,500,000

Contribution by SBU

$ (250,000)

$ (500,000)

Reference no: EM13875819

Questions Cloud

Determine angular velocity of crate : Assuming that the impact is perfectly plastic, determine the angular velocity of the crate and the velocity of its mass center immediately after the cable becomestaut.
How has sell all performed : Using the information in M6-13, calculate the gross profit percentage (rounded to one decimal place). How has Sell all performed, relative to the gross profit percentages reported for Walmart in the chapter?
Research on barriers to intermodal transportation : Research on Barriers to Intermodal transportation - topic that requires academic research not business research.
Each group must map out its ideal model : Divide into groups of three or four.
Which division should be closed and why : After recording lower than anticipated profits last year, Manuel has decided to shut down one of its divisions that is not performing well . Which division should be closed and why?
What is trade and down-ward sloping linear : What is trade and down-ward sloping, linear in terms of production?
What is the solution of this age problem : what is the solution of this age problem? A man, 32 years old has a son 8 years of age. In how many years will the man be twice as old as his son?
Corresponding velocity of the center : A uniform sphere of radius r is placed at corner A and is given a slight clockwise motion. Assuming that the corner is sharp and becomes slightly embedded in the sphere, so that the coefficient of static friction at A is very large, determine
Highly questionable business practices : 1. Was the CNET story sufficient justification for the HP board's actions? Why or why not?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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!

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