Sheffield corp. produces three versions of baseball bats: wood, aluminum, and hard rubber. a condensed segmented income statement for a recent period follows: wood aluminum hard rubber total sales $51 $2 $65000 $775000 variable expenses 325000 14 58000 523000 contribution margin 185000 6 7000 252000 fixed expenses 75000 35000 22000 132000 net income (loss) $11 $ 25000 $(15000) $12 assume none of the fixed expenses for the hard rubber line are avoidable. what will be total net income if the line is dropped? $14 $105000 $135000 $113000

Upscale hotels in the united states recently cut their prices by 20 percent in an effort to bolster dwindling occupancy rates among business travelers. a survey performed by a major research organization indicated that businesses are wary of current economic conditions and are now resorting to electronic media, such as the internet and the telephone, to transact business. assume a company's budget permits it to spend $5,000 per month on either business travel or electronic media to transact business. graphically illustrate how a 20 percent decline in the price of business travel would impact this company's budget set if the price of business travel was initially $1,000 per trip and the price of electronic media was $500 per hour. suppose that, after the price of business travel drops, the company issues a report indicating that its marginal rate of substitution between electronic media and business travel is 1. is the company allocating resources efficiently? explain.

Money from an allowance or job is known as .

Sauer food company has decided to buy a new computer system with an expected life of three years. the cost is $440,000. the company can borrow $440,000 for three years at 14 percent annual interest or for one year at 12 percent annual interest. assume interest is paid in full at the end of each year. a. how much would sauer food company save in interest over the three-year life of the computer system if the one-year loan is utilized and the loan is rolled over (reborrowed) each year at the same 12 percent rate? compare this to the 14 percent three-year loan.