A firm reduced the size of its workforce by 24%. If it now employs 570 workers many people did it employ before restructuring? how Select one: O a. 459 O b. 706 Oc 750 O d. None of the above
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- 19. A company has just been taken over by new management that believes it can raise earnings beforetaxes (EBT) from $600 to $1,000, merely by cutting overtime pay and reducing cost of goods sold. Priorto the change, the following data applied:Total assets 8,000Debt ratio 45%Tax rate 35%BEP ratio 13.31%EBT 600Sales 15,000These data have been constant for several years, and all income is paid out as dividends. Sales, the taxrate, and the balance sheet will remain constant. What is the company’s cost of debt? (Hint: Work onlywith old data.)A company has five product lines, one of which has Fixed expenses of $173,657 and a Net loss of $40,203. If this product line is eliminated, 48% of the fixed expenses can be eliminated and the remainder will be allocated to other product lines. If management decides to eliminate this product line, the amount the company's net income will increase or decrease(-) is? Round to the nearest dollar and put a negative sign - before a decrease. Do not type the dollar sign.A company has downsized by laying off 10,585 employees because of prolonged closures due to COVID. This represents 12% of its workers. How many employees were there prior to the layoffs?
- (20 pts) 5. Bennett Company was organized on November 1 of the previous year. After ten months of start-up losses, management had expected to earn a profit during August, the most recent month. Management was disappointed, however, when the income statement for August also showed a loss. August's income statement follows: James Company Income Statement For the Month Ended August 31 Sales $700,000 Less operating expenses: Selling and administrative services $40,000 Rent on facilities 50,000 Purchases of raw materials 200,000 Insurance 10,000…A family friend has asked your help in analyzing the operations of three anonymous companies operating in the same service sector industry. Supply the missing data in the table below: (Loss amounts should be indicated by a minus sign. Do not round your intermediate calculations.) Sales Net operating income Average operating assets Return on investment (ROI) Minimum required rate of return: Percentage Dollar amount Residual income $ $ Company A 310,000 151,000 18 % 16 % Company B $ 800,000 $ 50,000 $ 19 % 41,000 % Company C $ 660,000 $ $ 147,000 % 9 % 4,000Suppose Grainy Day is considering discontinuing its tasty loops product line. Assume that during the past year, the tasty loops' product line income statement showed the following: A B 1 Sales revenue $7,550,000 2 Less: Cost of goods sold 6,400,000 3 Gross profit 1,150,000 4 Less: Operating expenses 1,650,000 5 Operating income (loss) $(500,000) Fixed manufacturing overhead costs account for 40% of the cost of goods, while only 30% of the operating expenses are fixed. Since the tasty loops line is just one of the company's cereal operations, only $780,000 of direct fixed costs (the majority of which is advertising) will be eliminated if the product line is discontinued. The remainder of the fixed costs will still be incurred by the company. If the company decides to discontinue the product line, what will happen to the company's operating income? Should Grainy Day discontinue the tasty loops product line?
- A business plans for fixed production overheads of £100,000 and annual production of 200,000 units in its financial year. A fire at the factory results in production being only 150,000 units, with no saving in fixed production overheads. Based on the information above, what amount of unallocated overheads should be expensed in the Income Statement this year? Select one: O a. £75,000 O b. £0 Oc. None of the other answers shown d. £25,000 e. £12,500 Of. £100,000A segment of a company reports the following loss for the year. All $192,500 of its variable costs are avoidable, and $93,000 of its fixed costs are avoidable. Segment Income (Loss) Sales $ 275,000 Variable costs 192,500 Contribution margin 82,500 Fixed costs 101,000 Income (loss) (18,500) (a) Compute the income increase or decrease from eliminating this segment.(b) Should the segment be eliminated?The condensed income statement for a business for the past year is as follows: Product A Z Sales $660,000 $320,000 Less variable costs 540,000 220,000 Contribution margin $ 120,000 $100,000 Less fixed costs 145,000 40,000 Income (loss) from operations $ (25,000) $ 60,000 Management is considering the discontinuance of the manufacture and sale of Product A at the beginning of the current year. The discontinuance would have no effect on the total fixed costs and expenses or on the sales of Product Z. What is the amount of change in net income for the current year that will result from the discontinuance of Product A (amount and increase or decrease)?
- A segment of a company reports the following loss for the year. All $178,500 of its variable costs are avoidable, and $110,000 of its fixed costs are avoidable. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) $ 255,000 178,500 76,500 115,000 (38,500) (a) Compute the income increase or decrease from eliminating this segment. (b) Should the segment be eliminated? Complete this question by entering your answers in the tabs below. Required A Required B Compute the income increase or decrease from eliminating this segment. Segment Elimination Analysis Income Increase (Decrease) Sales Variable costs Contribution margin Fixed costs Income (loss) Continue Eliminate $ 255,000 178,500 76,500 115,000 $ (38,500)A family friend has asked your help in analyzing the operations of three anonymous companies operating in the same service sector industry. Supply the missing data in the table below: (Loss amounts should be indicated by a minus sign. Do not round your intermediate calculations.) Sales Net operating income Average operating assets Return on investment (ROI) Minimum required rate of return: Percentage Dollar amount Residual income $ $ Company A 480,000 156,000 21 % 18 % Company B $ 740,000 GA GA $ 53,000 $ 69 18 % 54.000 % $ $ $ Company C 520,000 155,000 % 12 % 5,000You have been approached by the CFO with a recommendation to discontinue all products that are generating an operating loss based on the following managerial report: Product A Product B Product C Sales revenue $100,000 $208,000 $95,000 Variable Costs $45,000 $32,000 $56,000 Traceable Fixed Costs $28,000 $52,000 $43,000 Common Fixed Costs $39,000 $22,000 $59,000 Operating Income ($12,000) $102,000 ($63,000) Which product(s) would you recommend to the CFO to discontinue? Only Product B Only Product C Product A and B None of the products should be discontinued Product B and C Only Product A Product A and C