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alishajade
31.05.2021 •
Business
Valdez Company is considering eliminating its kitchen division, which reported an operating loss of $53,000 for the past year. Kitchen division sales for the year were $1,040,000, and its variable costs were $775,000. The fixed costs of the division were $318,000. If the kitchen division is dropped, 60% of the foxed costs allocated to it could be eliminated. The impact on Valdez's operating income from eliminating this business segment would be:
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Ответ:
$200,000
Explanation:
The impact on Valdez's operating income from eliminating this business segment would be:
= Saving in fixed costs - Loss of contribution margin
= ($775,000*60%) - ($1,040,000 - $775,000)
= $465,000 - $265,000
= $200,000
Ответ:
false
Explanation:
standard form is Potassium hydrogen phthalate