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:
The concept of a 'flattened' world refers to the impact of globalization, which involves innovations and advancements in technology that have led to a more equitable environment. In this context, smaller nations now find themselves in competition with powerful countries.
Explanation:
A significant challenge presented by this situation is the heightened competition among nations, significantly affecting business resource availability. Conversely, the opportunities arising from this dynamic include the generation of new job openings, particularly in information systems and service-oriented fields. Additionally, businesses are able to discover better suppliers at more competitive prices due to the increased global options.
