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Pachacha [2.7K]
2 years ago
6

A Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for 20 per unit. Variable costs are 8 per unit,

and fixed costs total 180,000 per year. Answer the following independent questions:
(f) Refer to the original data. Assume again that the company sold 18,000 units last year. The president does not want to change the selling price. Instead, he wants to increase the sales commission by 1 per unit. He thinks that this move, combined with some increase in advertising, would increase annual sales by 25 % . By how much could advertising be increased with profits remaining unchanged? Do not prepare an income statement; use the incremental analysis approach.
Business
1 answer:
Inga [223]2 years ago
7 0

Variable expenses 20,000 advertising be increased with profits remaining unchanged.

Calculation of this year's operating income

Sales                             20000*1.25*(20*(1-0.1))          $450,000

Variable expenses      20000*8*1.25                          $200,000

Contribution margin                                                     $250,000

Fixed expenses          180000+30000                       $210,000

Net operating income                                                 $40,000

Thus, this year’s net operating income would be $40,000.

Working note

Calculation of units sold last year.

Units sold = Total sales revenue-Sale price per unit =$400,000 - $20 =20,000.

The retail price per unit is reduced by 10%, resulting in a revised retail price of $18 per unit and 20% more units sold. Therefore, the revised sales units would be 25,000, and the total sales for the year would be $450,000, calculated by multiplying the 25,000 units sold by the selling price per unit of $18. Variable expenses increase as the number of units sold improves, so the revised variable cost is the number of units sold multiplied by $8, resulting in a variable cost of $200,000. Variable costs of $200,000 are deducted from sales of $450,000 resulting in a contribution margin of $250,000. Fixed costs increased by $30,000, resulting in revised fixed costs of $210,000 and a net operating income of $40,000. This is calculated as a contribution margin of $250,000 minus fixed costs of $210,000.

Learn more about Variable expenses at

brainly.com/question/8225307

#SPJ4

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Paul has budgeted to pay $80 each month on his credit card which has a $2,818 balance and has an annual finance rate of 15.9%. H
Mashcka [7]

Answer:

time = 4 year

Explanation:

given data

pay each month =  $80  

Credit card balance = $2,818

annual finance rate = 15.9%

solution

we get here time period that is express by as

Monthly payment = \frac{(P \times \frac{r}{12}) \times (1+ \frac{r}{12})^t }{(1+\frac{r}{12})^t-1}     ............1

put here value and we get

80 =  \frac{(2818 \times \frac{0.159}{12}) \times (1+ \frac{0.159}{12})^t }{(1+\frac{0.159}{12})^t-1}    

solve it we get time t

t = 48 month

time = 4 year

 

4 0
3 years ago
Nico is meeting with his academic adviser. He wishes to pursue a career where he'll work to diagnose and treat mental disorders.
Arturiano [62]

Answer:

clinical psychologists

Explanation:

According to my research on different fields of psychology, I can say that based on the information provided within the question Nico aspires to be a clinical psychologists. This is a branch of psychology that focuses on diagnosing and treating mental, emotional, and behavioral disorders on different individual in order to help them by diagnosing and providing a solution.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

5 0
3 years ago
Tom is the it manager for an organization that experienced a server failure that affected a single business function. what type
Fynjy0 [20]
The answer to this question is <span>Business continuity plan (BCP)
</span><span>Business continuity plan (BCP) refers to the plan that made to notify all the risks and threats that's currently faced by the company and allocate company's  resource properly to avoid potential disastrous events (such us information leak in Tom's case)</span>
6 0
3 years ago
Complainer in the workplace
Trava [24]
Hi There!

Complainer in the workplace?


There are days where employees seem to be complaining about everything. In many companies, misery loves company, and it's a big problem for small-business owners. It can bring down employee morale, and affect employee productivity and retention. Ultimately, it will trickle down to the customers—resulting in sub-par service and a decrease in sales.

Negativity is rampant in the workplace. According to Jim Harter, Gallup’s chief scientist for workplace management, 18 percent of U.S. employees are “actively disengaged,” and will complain about their companies. 


4 0
3 years ago
On May 31, Money Corporation's Cash account showed a balance of $16,000 before the bank reconciliation was prepared. After exami
yaroslaw [1]

Answer:

cash balance tobe reported in the balance sheet 16,880

Explanation:

cash account   16,000

NSF check            240

service charge      (80)

amend mistake:    720

adjusted:          16,880‬

the check oustanding and the deposits in-transit are adjustment for the bank balance. not the firm cash accounting

We must look for data which wasn't know until receive the bank statement.

Those are:

the non-sufficient funds

the service charge

and the accounting mistake

6 0
3 years ago
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