subject
Business, 27.11.2019 21:31 Dsutton2021

Bed & bath, a retailing company, has two departments—hardware and linens. the company’s most recent monthly contribution format income statement follows: department total hardware linens sales $ 4,130,000 $ 3,060,000 $ 1,070,000 variable expenses 1,303,000 895,000 408,000 contribution margin 2,827,000 2,165,000 662,000 fixed expenses 2,250,000 1,420,000 830,000 net operating income (loss) $ 577,000 $ 745,000 $ (168,000 ) a study indicates that $374,000 of the fixed expenses being charged to linens are sunk costs or allocated costs that will continue even if the linens department is dropped. in addition, the elimination of the linens department will result in a 11% decrease in the sales of the hardware department. required: what is the financial advantage (disadvantage) of discontinuing the linens department?

ansver
Answers: 1

Another question on Business

question
Business, 21.06.2019 20:20
while setting up his new office, an attorney ordered thick, frieze carpets for the floor. however, the building inspector had him remove the expensive carpeting. the building inspector stated that according to federal regulations, the office must be wheelchair accessible as it is a public area. he further explained that since wheelchairs do not maneuver well in thick, frieze carpeting, the carpets had to be removed and be replaced with smooth-textured carpets that do not restrict wheelchair maneuverability. this scenario illustrates how a company is influenced by the component of its specific environment.
Answers: 2
question
Business, 22.06.2019 10:00
How has internet access changed and affected globalization from 2003 to 2013? a ten percent increase in internet access has had little effect on globalization. a twenty percent decrease in internet access has had little effect on globalization. a thirty percent increase in internet access has sped up globalization. a fifty percent decrease in internet access has slowed down globalization.
Answers: 1
question
Business, 22.06.2019 12:20
Bdj co. wants to issue new 22-year bonds for some much-needed expansion projects. the company currently has 9.2 percent coupon bonds on the market that sell for $1,132, make semiannual payments, have a $1,000 par value, and mature in 22 years. what coupon rate should the company set on its new bonds if it wants them to sell at par?
Answers: 3
question
Business, 22.06.2019 15:30
Uknow what i love about i ask a dumb question it is immediately answered but when i ask a real question it take like an hour to get answered
Answers: 2
You know the right answer?
Bed & bath, a retailing company, has two departments—hardware and linens. the company’s most re...
Questions
Questions on the website: 13722367