San Ruiz Interiors provides design services to residential and commercial clients. The residential services produce a contribution margin of $520,000 and have traceable fixed operating costs of $550,000. Management is studying whether to drop the residential operation. If closed, the fixed operating costs will fall by $450,000 and San Ruiz' income will: Multiple Choice A. increase by $30,000. B. increase by $70,000. C. increase by $420,000. D. decrease by $70,000. E. decrease by $420,000.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “San Ruiz Interiors provides design services to residential and commercial clients. The residential services produce a contribution margin ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Senior management uses finance and accounting information systems to
Answers (1)
A firm decides to increase output at a constant relative rate from its current level of 20,000 to 30,000 units during the next five years. calculate the annual percent rate of increase required to achieve this growth.
Answers (1)
Operating expenses directly traceable to or incurred for the sole benefit of a specific department and usually subject to the control of the department manager are termed direct operating expensesa. Trueb. False
Answers (1)
On October 1, 2018, Renfro Company purchased to hold to maturity, 4,000, $1,000, 9% bonds for $3,960,000 which includes $60,000 accrued interest. The bonds, which mature on February 1, 2027, pay interest semiannually on February 1 and August 1.
Answers (1)
James borrows $300,000 for a home from Bank A. Bank A resells the right to collect on that loan to Bank B.
Answers (1)
New Questions in Business
A law requiring nutritional information on the outside packaging of food products is what type of force in the external marketing environment
Answers (1)
Restaurants, like other businesses, often find that the best way to succeed in the market is to:
Answers (1)
Camille, a citizen and resident of Country A, received a $1,000 dividend from a corporation organized in Country B.
Answers (2)
When selling an older home, disclosure must be made to the buyer of any insurance claims made within the last:?
Answers (1)
Lead Corporation established a new subsidiary and transferred to it assets with a cost of $90,000 and a book value of $75,000. The assets had a fair value of $100,000 at the time of transfer. The transfer will result in a.
Answers (1)