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?
Find 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 the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Do you think union influence will continue to decline? why or why not
Answers (1)
Why is the leaf washed with distilled water
Answers (1)
A new transmission in your truck will cost $9,500.00. luckily, it should reduce maintenance expense by $3,975.00 each year for the next 10 years. what is the npv of the transmission? use a discount rate of 10.70%
Answers (1)
A company paid $38,800 to acquire 7% bonds with a $41,000 maturity value. The company intends to hold the bonds to maturity. The cash proceeds the company will receive when the bonds mature equal: Multiple Choice $39,350. $43,870. $41,550. $41,000.
Answers (1)
Jillis interested in a career as a paramedic. She is trained to use medical equipment, she remains calm under pressure, and she has good bedside manner.
Answers (1)
New Questions in Business
A firm has hired you as a consultant. This firm is perfectly competitive and has no control over price. This firm is selling 10,000 units at a price of $2. Total costs are $30,000. Total variable costs are $25,000.
Answers (1)
Stock in 1999 your parents bought $3000 worth of stock. in 2000 the value of the stock jumped to $6000. however since that time, the stock has decreased in value by 6.5% per year.
Answers (1)
True or False: When a country is too small to affect the world price, allowing free trade will have a non-negative effect on total surplus in that country, regardless of whether it imports or exports as a result of international trade. True False
Answers (1)
Assume Canada can either produce three bushels of barley or six bushels of hay in a set period of time, and China can produce either two bushels of barley or three bushels of hay in a set period of time.
Answers (1)
The financial statements for Harold Corporation contained the following information: Accounts receivable $ 5,000 Sales revenue 75,000 Cash 15,000 Salaries and wages expense 20,000 Rent expense 10,000 How much was Harold's net income?
Answers (1)