Geo Company's western territory's forecasted income statement for the upcoming year is as follows: Sales revenue $ 850 comma 000 Variable costs (530 comma 000 ) Contribution margin $ 320 comma 000 Fixed costs (500 comma 000 ) Operating loss $ (180 comma 000 ) The company's management is considering dropping the western territory and has determined that 80 % of the fixed costs are avoidable. What is the change in the forecasted operating loss for the upcoming year if the western territory is dropped? Assume the company predicts an operating loss across the entire company. A. The loss will be reduced by $ 80 comma 000. B. The loss will be reduced by $ 400 comma 000. C. The loss will be increased by $ 80 comma 000. D. The loss will be increased by $ 400 comma 000.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Geo Company's western territory's forecasted income statement for the upcoming year is as follows: Sales revenue $ 850 comma 000 Variable ...” 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
Which of the following best defines an in-text citation? A. A brief quotation from an outside author's work that leads the readers to works by the same author. B.
Answers (1)
What was the one reason we study ethics is to see whether the moral beliefs we already hold are consistent and philosophically justifiable?
Answers (1)
Rinker Audio Products stores its finished goods in various warehouses around the United States and in international locations.
Answers (1)
On October 10, Joleen Vora applied for a $50,000 life insurance policy with Magnum Life Insurance Co. She named her husband, Jay, as the beneficiary. Joleen paid the insurance company the first year's premium on making the application.
Answers (1)
The mandatory leadership-training seminar had just been concluded. All of the newly promoted managers at Marc's Music, Inc.
Answers (1)
New Questions in Business
An oligopolistic market structure is distinguished by several characteristics, one of which is a difficult entry. Which of the following are other characteristics of this market structure? Check all that apply. a. Market control by many small firms.
Answers (1)
Who should you' alert that you are interviewing for jobs? A. Your references B. Other possible employers C. Your classmates D. Your present employer
Answers (1)
Common allocation bases are a. direct labor dollars, direct labor hours, and machine dollars b. machine dollars, direct labor dollars, and direct labor hours c. direct labor dollars, direct labor hours, and machine hours d.
Answers (1)
George and Weezy received $30,200 of Social Security benefits this year ($12,000 for George; $18,200 for Weezy). They also received $5,000 of interest from jointly owned City of Ranburne Bonds and dividend income.
Answers (1)
Which of the following is true regarding the high-tech industry today? a. It generally depends on a pool of low-skilled labor. b. It has led to the increased economic development of previously rural areas. c.
Answers (1)