Blowing Sand Company produces the Drafty model fan, which currently has a net loss of $38,000 as follows:

Drafty Model
Sales revenue $ 250,000
Less: Variable costs 175,000
Contribution margin $ 75,000
Less: Direct fixed costs 69,000
Segment margin $ 6,000
Less: Common fixed costs 44,000
Net operating income (loss) $ (38,000)

Eliminating the Drafty product line would eliminate $69,000 of direct fixed costs. The $44,000 of common fixed costs would be redistributed to Blowing Sand’s remaining product lines.

Will Blowing Sand’s net operating income increase or decrease if the Drafty model is eliminated? By how much?

Secured loans are protected by collateral security. examples: title loans where the borrower uses the car title as collateral security interest rates are lower and repayments are longer therefore risk is low as a collateral security is given as guarantee to the bank in case of failure to pay the loanunsecured loans are not protected by collateral security but it is given on the creditworthiness of the borrower, trusting that she/he will pay on time. examples; payday loans is a short term loan where the borrower lends money from the bank and pays is back when the borrower receives his/her wages.interest rates are high and repayments are shorter. but the risk is high as no collateral security is given as a guarantee to the bank for payment of the loan

There are three key entities in thefederal reserve system: the  board  of governors, the  federal reserve banks(reserve banks), and the  federal  open market committee (fomc). while the  federal reserve  has frequent communication with executive branch and congressional officials, its decisions are made independently.