This topic contains a solution. Click here to go to the answer

Author Question: Knoll Manufacturing has manufacturing facilities in several locations. One of Knoll's facilities has ... (Read 100 times)

hannahmadyronde

  • Full Member
  • ***
  • Posts: 134
Knoll Manufacturing has manufacturing facilities in several locations. One of Knoll's facilities has been showing losses over several quarters, and management is considering closing the facility. If the facility is closed, only two part-time employees will be retained by Knoll. The annual wage of each part-time worker is $14,400. This particular location has been in operation for many years. As a result, the manufacturing equipment has no resale value. Following is the most recent income statement for the facility:

Sales$3,650,000
Less: Variable expenses 2,555,000
Contribution margin1,095,000
Less: Fixed expenses
    Wages684,000
    Insurance176,800
    Depreciation294,000
    Advertising       22,000
Operating income$    (81,800)

What would be the impact on Knoll's overall operating income if the manufacturing facility is eliminated?
◦ Increase by $81,800 per year
◦ Decrease by $241,000 per year
◦ Increase by $322,800 per year
◦ Decrease by $226,600 per year


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by hannahmadyronde on Feb 5, 2023

kugyo01

  • Full Member
  • ***
  • Posts: 156
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 26% of students answer this correctly




hannahmadyronde

  • Member
  • Posts: 134
Reply 2 on: Feb 5, 2023
Thanks for the timely response, appreciate it


sultana.d

  • Member
  • Posts: 320
Reply 3 on: Yesterday
Great answer, keep it coming :)

 

Did you know?

Patients should never assume they are being given the appropriate drugs. They should make sure they know which drugs are being prescribed, and always double-check that the drugs received match the prescription.

Did you know?

It is important to read food labels and choose foods with low cholesterol and saturated trans fat. You should limit saturated fat to no higher than 6% of daily calories.

Did you know?

Parkinson's disease is both chronic and progressive. This means that it persists over a long period of time and that its symptoms grow worse over time.

Did you know?

The top five reasons that children stay home from school are as follows: colds, stomach flu (gastroenteritis), ear infection (otitis media), pink eye (conjunctivitis), and sore throat.

Did you know?

The modern decimal position system was the invention of the Hindus (around 800 AD), involving the placing of numerals to indicate their value (units, tens, hundreds, and so on).

For a complete list of videos, visit our video library