Response:
a. Based on the company’s accounting records, the net operating income for product D14E is: (Net losses should be indicated with a negative sign.)
b. Evaluating the financial impact of discontinuing product D14E: It would lead to a financial disadvantage of -$68,000, so the product should remain in production as its losses would otherwise rise
- The financial summary is:
total sales $670,000
- variable expenses $295,000
- fixed manufacturing expenses $246,000
- fixed selling and administrative expenses $194,000
net loss = $65,000
If product D14E were to be cut, $196,000 + $111,000 = $307,000 of fixed expenses could be avoided, but $133,000 would still remain unavoidable. Discontinuing the product would increase losses by $133,000 - $65,000 = $68,000
Answer:
This type of research can be best described as a non-experimental study.
Explanation:
Non-experimental research refers to situations where the researcher is unable to manipulate, regulate, or alter the subjects involved, relying instead on observation, interpretation, or interactions to draw conclusions. In such studies, the researcher typically depends on surveys, correlations, or case studies.
The external validity of non-experimental research is notably high as it is generally applicable to larger populations. An example of this is when XYZ Corp utilizes a survey for the study.
