Bed & bath, a retailing company, has two departments—hardware and linens. the company’s most recent monthly contribution format income statement follows: department total hardware linens sales $ 4,250,000 $ 3,180,000 $ 1,070,000 variable expenses 1,311,000 899,000 412,000 contribution margin 2,939,000 2,281,000 658,000 fixed expenses 2,320,000 1,480,000 840,000 net operating income (loss) $ 619,000 $ 801,000 $ (182,000 ) a study indicates that $380,000 of the fixed expenses being charged to linens are sunk costs or allocated costs that will continue even if the linens department is dropped. in addition, the elimination of the linens department will result in a 18% decrease in the sales of the hardware department. required: what is the financial advantage (disadvantage) of discontinuing the linens department?

Which of the following statements about brand names is true? brand names give the seller an incentive to provide consistently high-quality products and services in order to protect the reputation of the brand. brand names are always economically wasteful since they dupe consumers into buying more expensive goods and services that are no different from generic versions. it is always rational to prefer brand names over generic substitutes. read the following example and determine whether it illustrates a common critique or defense of advertising. musashi sees a commercial for a brand x clothing company that depicts the wearers of the clothes out having a good time with friends. although he doesn't particularly need new clothes, the commercial prompts him to buy a brand x t-shirt.

For each separate case below, follow the 3-step process for adjusting the prepaid asset account at december 31. step 1: determine what the current account balance equals. step 2: determine what the current account balance should equal. step 3: record the december 31 adjusting entry to get from step 1 to step 2. assume no other adjusting entries are made during the year. a. prepaid insurance. the prepaid insurance account has a $4,700 debit balance to start the year. a re- view of insurance policies and payments shows that $900 of unexpired insurance remains at year-end. b. prepaid insurance. the prepaid insurance account has a $5,890 debit balance at the start of the year. a review of insurance policies and payments shows $1,040 of insurance has expired by year-end. c.prepaidrent.onseptember1ofthecurrentyear,thecompanyprepaid$24,000 for 2 years of rentfor facilities being occupied that day. the company debited prepaid rent and credited cash for $24,000.

Florence invested in a factory requiring. federally-mandated reductions in carbon emissions. how will this impact florence as the factory's owner? a. her factory will be worth less once the upgrades are complete. b. her factory will likely be bought by the epa. c. florence will have to invest a large amount of capital to update the factory for little financial gain. d. florence will have to invest a large amount of capital to update the factory for a large financial gain.