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he following information is available in regard to revenues from charm city toys, a customer of the plush toy division of carmel manufacturing. revenues $500,000 cost of goods sold 400,000 goods-handling labor 75,000 goods-handling equipment - depreciation 87,500 rent 12,500 marketing support 37,500 sales-order and delivery processing 12,500 general administration 5,500 allocated corporate-office costs 5,000 635,500` operating loss ($135,500) cost of goods sold, goods-handling labor, marketing support, sales-order, and delivery-processing costs can be saved if the account is withdrawn. there is no alternate use for warehouse space and goods-handling equipment. should carmel manufacturing continue selling to charm city toys?

Respuesta :

Yes, as dropping the Sweet Inc. account will lead to a reduction in overall operating income by $375,000.

Revenue 1000000

Less: Avoidable costs  

Cost of goods sold 500000

Goods-handling labor 50000

Marketing support 50000

Sales-order and delivery processing  25000

Total costs 625000

Incremental income 375000

Redox is a type of chemical reaction wherein the oxidation states of the substrate change. Oxidation is the loss of electrons or an increase inside the oxidation nation, likewise, the discount is the benefit of electrons or a decrease in the oxidation country. There are two training of redox reactions: Electron-switch – the most effective one (commonly) electron flows from the lowering agent to the oxidant. This kind of redox reaction is often discussed in the time period of redox couples and electrode potentials. Atom switch – an atom transfers from one substrate to another.

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