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1)Somerset Corporation is composed of five divisions, and each division is allocated a share of Somerset overhead to make divisional managers aware of the cost of running the corporate headquarters
1)Somerset Corporation is composed of five divisions, and each division is allocated a share of Somerset overhead to make divisional managers aware of the cost of running the corporate headquarters. The following information relates to the Metro Division: Sales $7,500,000 Variable operating costs 5,100,000 Traceable fixed operating costs 1,900,000 Allocated corporate overhead 300,000 If the Metro Division is closed, 100% of the traceable fixed operating costs can be eliminated.
What will be the impact on Somerset's overall profitability if the Metro Division is closed?
A. Decrease by $200,000.
B. Decrease by $500,000.
C. Decrease by $2,100,000.
D. Decrease by $2,400,000.
2)QUESTION- Is a virtue a virtue because of what it is in itself, such as courage, hope, or integrity, or is it a virtue because of how it fits positively with its social framework? So is it courage to rush into a burning house to rescue a child? What about to rescue a dog? What about to rescue a hamster? What about to rescue a book of photographs? What about to rescue a set of pots? This is a difficult question because it calls for a sophisticated analysis of the nature of virtues and the meaning of social relations. The courage does not appear to be just in the person-act, but also how the act relates to the way other people evaluate various components of the act. Choose a virtue such as courage, hope, integrity, generosity, love, compassion, or honesty. Identify a situation where you demonstrated that virtue. What was it about the situation that indicated you were virtuous? Did others agree with you? Disagree with you? Can you imagine a situation where acting the same way would not be perceived as virtuous? Based on that story, what do you think the relationship is between a virtue and its social context? Which is more important, the act or the way others interpret it? Make sure you justify your position.
Expert Solution
1)
| The allocated overheads will always be incurred as they are not additional costs incurred but | |||||||
| only the allocated costs of already incurred overheads. | |||||||
| The contribution margin from metro division = $7500000 - $5100000 | |||||||
| = $2400000 | |||||||
| There is a saving of fixed oprating costs by closing down the Metro divison. | |||||||
| Therefore, the total impact of profitability on Somerset's overall profitability will be equal to, | |||||||
| = Contribution margin - Allocated overheads. | |||||||
| = $2400000 - $300000 | |||||||
| = $2100000 | |||||||
| Therefore, the overall profitability will decrease by $2100000. | |||||||
| Option C is the correct answer. |
2)I have a freind name Neeraj who is living near my house. He is my childhood friend and we both grow together in the same locality. My parents and brother doesn't like him because he is poor. One day he got interview call and he needed a laptop for the virtual interview. He is not in the position to afford a laptop. He requested me to give my laptop to him for 1 day. I give my laptop to him. My parents and brother didnt like that I share my belongings to him. But unfortunately, at that day when Neeraj using my laptop, the laptop falls from his hand and get damaged and broke into various pieces. He told my the truth and feel sorry for that. He told me that he give his money back as soon as possible. That laptop was old one so I denying from taking money and told forget about it, I didnt need money. I know he is very poor and cant afford to pay money back so I forget about money and told him not required to give money back. But when my parents know about the accident, he punished me for giving him laptop and told me to take money for the accident from Neeraj. This was the incident where I think about my friend and know he cant afford to payback money but at the same time, my parents didnt understand our relation and demand money even knowing he cant afford. In this situation my parents didnt agree with me.
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