Lusk Corporation produces and sells 15,700 units of Product X each month. The selling price of Product X is $27 per unit, and variable expenses are $21 per unit. A study has been made concerning whether Product X should be discontinued. The study shows that $72,000 of the $107,000 in monthly fixed expenses charged to Product X would not be avoidable even if the product was discontinued. If Product X is discontinued, the annual financial advantage (disadvantage) for the company of eliminating this product should be:
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Lusk Corporation produces and sells 15,700 units of Product X each month. The selling price of Product X is $27 per unit, and variable ...” 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
Studios reported a net capital loss of $30,000 in year 5. it reported net capital gains of $14,000 in year 4 and $27,000 in year 6. what is the amount and nature of the book-tax difference in year 6 related to the net capital carryover?
Answers (1)
The semiannual, 8-year bonds of Alto Music are selling at par and have an effective annual rate of 8.6285 percent. What is the amount of each interest payment if the face value of the bonds is $1,000? (Choose the nearest value)
Answers (1)
Suppose that you are available to go to work but have not looked for a job for at least the last four weeks because you believe that there aren't any jobs available. You would be counted as A. underemployed. B. unemployed. C. a discouraged worker. D.
Answers (1)
Suppose that a manufacturer can produce a part for $8.00 with a fixed cost of $6 comma 000. Alternately, the manufacturer could contract with a supplier in Asia to purchase the part at a cost of $10.00 , which includes transportation. a.
Answers (1)
If the Fed increases the money supply, a. the interest rate increases, which tends to raise stock prices. b. the interest rate decreases, which tends to raise stock prices. c. the interest rate decreases, which tends to reduce stock prices. d.
Answers (1)
New Questions in Business
Rice Co. was incorporated on January 1, Year 6, with $500,000 from the issuance of stock and borrowed funds of $75,000. During the first year of operations, net income was $25,000. On December 15, Rice paid a $2,000 cash dividend.
Answers (1)
Sales $ 929,000 $ 264,000 $ 406,000 $ 259,000 Variable manufacturing and selling expenses 478,000 114,000 206,000 158,000 Contribution margin 451,000 150,000 200,000 101,000 Fixed expenses: Advertising, traceable 69,300 8,300 40,600 20,400
Answers (1)
Which type of investor owns a public corporation
Answers (1)
Clay University, a not-for-profit university, earned $300,000 from bookstore revenue and spent $100,000 for faculty research in 20X1. The $100,000 for faculty research came from a $150,000 research grant received in the previous year.
Answers (1)
Which of the following characteristics apply to taxable fringe benefits? (Check all that apply.) * The cost of the taxable fringe benefit is deductible to the employer, not the value of the benefit to the employee.
Answers (1)