Soar Incorporated is considering eliminating its mountain bike division, which reported an operating loss for the recent year of $3,000. The division sales for the year were $1,047,000 and the variable costs were $860,000. The fixed costs of the division were $190,000. If the mountain bike division is dropped, 30% of the fixed costs allocated to that division could be eliminated. The impact on operating income for eliminating this business segment would be: Multiple Choice $187,000 decrease $130,000 decrease $187,000 increase $54,000 decrease $57,000 decrease
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Soar Incorporated is considering eliminating its mountain bike division, which reported an operating loss for the recent year of $3,000. ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Jim saw a decrease in the quantity demanded for his firm's product from 8000 to 6000 units a week when he raised the price of the product from $200 to $250.
Answers (1)
Blossom Company received a check for $28320 on July 1 which represents a 6 month advance payment of rent on a building it rents to a client. Unearned Rent Revenue was credited for the full $28320. Financial statements will be prepared on July 31.
Answers (1)
The composition of the Fingroup Fund portfolio is as follows: Stock Shares Price A 320,000 $ 40 B 420,000 45 C 520,000 10 D 720,000 15 The fund has not borrowed any funds, but its accrued management fee with the portfolio manager currently totals
Answers (1)
European colonialism was driven in part by the vast inflow of raw materials, such as sugar, cotton, as well as human bodies and labor, which were seen as expendable.
Answers (1)
The collapse of the fixed exchange rate system has been traced to the
Answers (1)
New Questions in Business
Than Wok emigrated from his war-torn country to the United States almost two years ago. He recently found a job working on an assembly line at a major computer manufacturer. Than left his friends and family behind when he came to the United States.
Answers (1)
Universal Electronics, Inc. (UEI), which started operations one year ago, has two divisions: Consumer and Commercial. Both divisions invest heavily in R&D, which is assumed to benefit five years. R&D spending is made uniformly throughout the year.
Answers (1)
What concept is associated with the notion that employers can get greater effort from workers by paying them a relatively high, above-equilibrium wage? A. profit sharingB. efficiency wagesC. piece-rate wagesD. bonus or commissions
Answers (1)
The benefit of the beautification initiative, as suggested by the survey, is. Because the estimated benefit isless than the cost, the college administratorsshould not undertake the beautification initiative.
Answers (1)
Loss leaders are poorly managed retail companies of outlets. true or false.
Answers (2)