Deborah Lewis, general manager of the Northwest Division of Berkshire Co., has significant authority over pricing decisions as well as programs that involve cost reduction/control. The data that follow relate to upcoming divisional operations:
Average invested capital: $15,000,000
Annual total fixed costs: $3,900,000
Variable cost per unit: $80
Number of units expected to be sold: 120,000
Assume the unit selling price is $132 and that Berkshire has a 16% imputed interest charge.
Top management will promote Deborah to corporate headquarters if her division can generate $200,000 of residual income (RI). If Deborah desires to move to corporate, what adjustment must the division do to the amount of annual total fixed costs?
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Deborah Lewis, general manager of the Northwest Division of Berkshire Co., has significant authority over pricing decisions as well as ...” 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
On January 1, 2021, the Marjlee Company began construction of an office building to be used as its corporate headquarters. The building was completed early in 2022.
Answers (1)
The balance in the supplies account, before adjustment at the end of the year, is $2,397. Journalize the adjusting entry required if the amount of supplies on hand at the end of the year is $1,127.
Answers (1)
The Marchetti Soup Company entered into the following transactions during the month of June: (1) purchased inventory on account for $240,000 (assume Marchetti uses a perpetual inventory system);
Answers (1)
Sales in North Corporation increased from $60,000 per year to $63,000 per year while net operating income increased from $10,000 to $12,000. Given this data, the company's degree of operating leverage must have been:
Answers (1)
Patty took a cash advance of $1,500. her new credit card charges an annual percentage rate of 21%. the transaction fee for the cash advance is 3% of the amount of the advance, with a minimum fee of $35.
Answers (1)
New Questions in Business
A variable that likely is incorporated in the error term is: A. The fixed cost of production B. the variable cost of production C. Profit from popsicle sales
Answers (1)
Domingo Corporation makes a variety of headphones with logos. The company has discovered a new market for wireless headphones with logos. Market research indicates that these headphones would sell well in the market priced at $34.80 each.
Answers (1)
Derek has liquid assets of $4,450 and he saves $615 a month. His current liabilities are equal to $1,750 and monthly credit payments of $425. Derek's gross income is $5,900 each month and a take-home pay of $4,775.
Answers (1)
The sausage hut is looking at a new sausage system with an installed cost of $438,000. this cost will be depreciated straight-line to zero over the project's four-year life, at the end of which the sausage system can be scrapped for $69,000.
Answers (1)
With all the money i am spending today, will i be recieving anything complimentary
Answers (1)