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Orlov
6 days ago
15

Lake Corporation is considering the elimination of one of its segments. The segment incurs the following fixed costs. If the seg

ment is eliminated, the building it uses will be sold. Advertising expense $ 140,000 Supervisory salaries 300,000 Allocation of companywide facility-level costs 130,000 Original cost of building 220,000 Book value of building 100,000 Market value of building 160,000 Maintenance costs on equipment 112,000 Real estate taxes on building 12,000 Required Determine the amount of avoidable cost associated with the segment.
Business
1 answer:
stepan [3.2K]6 days ago
3 0

Response:

The avoidable costs linked to the segment amount to $754,000

Detailed explanation:

The costs tied to the segment under consideration for elimination are as follows:

- Advertising costs = $140,000

- Salaries for supervisors = $300,000

- Allocation of costs at the company level = $130,000

- Loss incurred from unsold building (*): $60,000

- Maintenance costs on equipment = $112,000

- Real estate taxes on the building = $12,000

The cumulative cost amounts to $754,000

(*) The earnings from the sold building (book value) = Market value of the building $160,000 - Book value of the building $100,000 = $60,000

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Jane purchased a piece of equipment for $250,000 for use in her business. She incurred freight charges of $3,500, installation c
stepan [3267]

Answer: $36,000 loss

Explanation:

Initial cost = $250,000

Shipping fees = $3,500

Setup fees = $2,500

Annual maintenance = $5,000

Depreciation amount = $25,000

Proposed selling price = $200,000

Total costs involved = $(250,000 + 3,500 + 2,500 + 5,000)

Total costs involved = $261,000

Depreciation amount = $25,000

Equipment's book value = $261,000 - $25,000 = $236,000

Calculating gain/loss = Book value - selling price

Gain/loss = $236,000 - $200,000

$36,000 loss

4 0
1 month ago
If your credit card limit is $800 and your outstanding balance is $725, what is the largest amount you can charge on that card i
Free_Kalibri [3484]

Answer:

The correct selection is option "C": $75.

Explanation:

The outstanding balance on a credit card shows how much the user has spent against the card's credit limit. It also indicates the debt owed to the issuing bank. Once the outstanding balance is cleared, the total credit limit becomes available again.

Therefore, with a credit limit of $800 and an outstanding balance of $725, the maximum amount the account holder can charge next month is $75 ($800-$725 = $75).

3 0
1 month ago
An outside supplier has offered to produce and sell the part to the company for $23.40 each. If this offer is accepted, the supe
arsen [3236]
It indicates a financial advantage of $18,800 for accepting the offer. Kleffman Corporation currently produces part X31 with an annual output of 2,000 units. According to their accounting data, the production costs at this level are as follows: DM $6.90, DL $4.90, V MO $8.00, Supervisor $2.20, Depreciation $1.40, General $2.80, totaling $26.20 per unit. The unavoidable cost amounts to $2.80 x 2,000 units = $5,600. The depreciation is treated as a sunk cost, reflecting no cash flow impact on the business. Making the part internally results in a total expenditure of $52,400. The potential opportunity cost associated with generating an additional segment margin of $18,800 comes into play. The total cost aligns at $71,200 against the purchase cost of $23.40 x 2,000 = $46,800. The unavoidable cost remains at $5,600, resulting in a total of $52,400 when taken into account. Thus, the differential is computed as 71,200 - 52,400 = 18,800.
5 0
10 days ago
A small construction firm specializes in building and selling single-family homes. The firm offers two basic types of houses, mo
harina [3514]

Answer:

The solution and relevant data for the exercise are contained within three images. The maximum profit amounts to 262.500.

Explanation

Please take into account the details provided in the exercise. Should you have any queries, feel free to reach out again. All the exercises are illustrated within three images.

8 0
1 month ago
Based on an annual disposable income of $40,000, calculate the average amount o money a person would save in japan; in the unite
marusya05 [3428]

Answer:

Japan     $760

The United States     $1,600

France          $6,320

Explanation:

Total personal revenue is calculated as disposable income minus personal taxes. Earnings from employment, after deducting actual taxes, reveal the net established income.

The household saving rate is defined as total savings divided by disposable income.

Household saving = Disposable income * Household saving rate

Japan:

$40,000*1.9% = $760

United States:

$40,000*4% = $1,600

France:

$40,000*15.8% = $6,320

7 0
1 month ago
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