Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. a recent accounting graduate from marvel state uni

A recent accounting graduate from Marvel State University evaluated the operating perfomance...

60.1K

Verified Solution

Question

Accounting

image

image

A recent accounting graduate from Marvel State University evaluated the operating perfomance of Fanning Company's four divisions. The following presentation was made to Fanning's Board of Directors. During the presentation, the accountant made the recommendation to eliminate the Southern Division stating that total net income would increase by $60,000. (See analysis below.) Other Three Southern Division Total Divisions s 2,000,000 950,000 1,050,000 800,000 $ 250,000 $480,000 400,000 80,000 140,000 s (60,000) Sales Cost of Goods Sold Gross Profit Operating Expenses Net Income 2,480,000 1,350,000 1,130,000 940,000 $190,000 For the other divisions, cost of goods sold is 80% variable and operating expenses are 70% variable. The cost of goods sold for the Southern Division is 30% fixed, and its operating expenses are 75% fixed. If the division is eliminated, only $15,000 of the fixed operating costs will be eliminated

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Chemistry
1.2K views

1) a) Calculate the pH of a buffer that is 0.12 M in lactic acid and...

Programming
1.2K views

The program shall take two integer arrays as input. Each array represents a non-negative number. Each...

Physics
1.2K views

A symmetrical table of height 0.750 m, length 1.55 m, and weight 462 N is dragged...

General Management
1.2K views

Individual Brief for group project Members will prepare and share with their team a brief (maximum 500...

Biology
1.2K views

Which is the short muscle that flexes the big toe OA Gluteus maximus OB Extensor...

Basic Math
1.2K views

Find the x-intercept(s) and the coordinates of the vertex for the parabola y=x-4x-5. If there...

Calculus
1.2K views

Lumber is selling at 45 each and are marked up 25 above cost due to...

Calculus
1.2K views

Points 0 of 4 After 20 years Trish will have 34898 19 Round to the...

Accounting
1.2K views

Tony owns 40% of the stock of Avengers, Inc, with a FMV of $400,000. His...

Accounting
1.2K views

Salt and Mineral (SAM) began 2024 with 210 units of its one product. These units...

Accounting
1.2K views

Kay Manufacturing reported thefollowing$450,000RevenueBleginning inventory of direct materials, January20,0001,2015Purchases of direct156,000materialsEnding inventory of direct materials,18,000December...

Finance
1.2K views

5. Negative Growth. Horse and Buggy Inc. is in a declining industry. Sales, earnings, and...