Answer:
1. How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Medical Market?
We are missing the cost structure, so I looked for similar question. The company's current segment margin for the medical market is 30%. So this campaign would increase segment profit by $42,000 x 30% = $12,600. Since its cost is $4,800, net profit will increase by $12,600 - $4,800 = $7,800
2. How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Dental Market?
The dental market's segment profit is 24%, so this campaign would increase revenue by $36,000 x 24% = $8,640. To calculate net profit we must again subtract the campaign's cost. Net profit = $8,640 - $4,800 = $3,840
3. In which of the markets would you recommend that the company focus its advertising campaign?
They should focus on the medical market since their profit will be higher.
Explanation:
Answer:
He has to deposit $750.46 every month into the account
Explanation:
Future value id the accumulated amount of principal and compounded interest at the end of a specific investment period.
Assuming interest is compounding every month, use following formula to calculate the amount of payment each month.
FV = PV x ( 1 + r )^n + A x ( ( 1 + r )^n - 1 ) / r
$57,000 = $10,000 x (1+0.1%)^5x12 + A x ( ( 1+0.1% )^5x12 -1 ) / 0.1%
A = { $57,000 - [ $10,000 x ( 1 + 0.001 )^60 ] } / [ ( ( 1 + 0.001 )^60 )-1 / 0.001 ]
A = ( $57,000 - $10,618.05 ) / 61.80471
A = $46,381.95 / 61.80471
A = $750.46
Answer:
The debit adjustment to equipment would be $30,000.
Explanation:
Amount received for the equipment by Mortar from Granite - $370,000
Purchase price of the equipment = $400,000
Debit adjustment to equipment = Purchase price of the equipment - Amount received for the equipment by Mortar from Granite = $400,000 - $370,000 = $30,000
Therefore, the debit adjustment to equipment would be $30,000.
Answer:
the revised net operating income is $ 26,400
Explanation:
Effect the Changes on the Units, Selling Price and Fixed Cost as described on the Original Income Statement.
Revised Income Statement
Sales( (12,900 units x 2)× ($20 per unit×0.90)) $ 464,400
Variable expenses ( $10× (12,900 units x 2)) ($ 258,000)
Contribution margin $206,400
Fixed expenses (144,000 + $36,000 ) ($180,000)
Net operating loss $ 26,400
