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irinina [24]
1 year ago
12

if variable cost increases by $1/unit, advertising cost increases by $1,500, and units sales increase by 250, what would be the

new net operating income?
Business
1 answer:
stira [4]1 year ago
4 0

Revised Sales revenue (1,000 + 150 units = 1,150 * $35)           $40,250

Less: Reised Variable costs ($21 + $1 = $22 * 1,150)                  ($25,300)

Revised Contribution Margin                                                   $14,950

Less: Revised Fixed costs ($8,400 + $1,250)                          ($9,650)

Net operating income                                                                   $5,300

Fixed costs remain the same for a period of time. Variable costs increase or decrease depending on the performance of the company. Examples of fixed costs are rent, taxes, and insurance premiums.

Variable costs are costs that change with changes in quantity. Examples of variable costs include raw materials, parts labor, production materials, handling charges, shipping charges, packaging materials, and credit card fees. In some fiscal documents, the variable cost of production is called the "cost of goods sold."

Learn more about Variable costs at

brainly.com/question/5965421

#SPJ4

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Murphy Inc. has two new liabilities. The first liability is due in one year and has a face value of $1,500,000 and present value
Tanzania [10]

Answer:

$5,896,778

Explanation:

The computation of the increase value in the liabilities section is shown below:

= Present value of the first liability due in one year + Present value of the second liability due in three years

= $1,388,889 + $4,507,889

= $5,896,778

For computing the increase value in the liabilities we simply added the present value of two liabilities given in the question

7 0
3 years ago
Jeff's Stereos is expanding its product offerings which includes increasing the floor inventory by $150,000, increasing accounts
Illusion [34]

Answer:

$310,000

Explanation:

The computation of the projected initial cash flow is shown below:

Project's initial cash outflow= Increased inventory + increased accounts receivable - increased debt + spending amount for the expansion of the size of the showroom

= $150,000 +  $35,000 -  $75,000 +  $200,000

= $310,000

We simply applied the above formula to find out the initial cash flow

3 0
3 years ago
Tinker's cost of goods sold in the year of sale (2019) was $850,000 and 2018 cost of goods sold was $870,000. The inventory at t
masya89 [10]

Answer:

Inventory turnover period in 2019  =89.3 days

Explanation:

<em>The inventory turnover period also known as the inventory days is the average length of time it takes business to sell its stocks and replace same. The shorter the better as it indicates a high patronage from customers.</em>

It is calculated as follows:

<em>Inventory turnover = (Average inventory / cost of goods ) × 365 days</em>

Note that,

<em>average inventory =( opening inventory + closing inventory)/2</em>

Average inventory = (218,000 + 198,000)/2 = 208,000

<em>Cost of goods sold in 2019</em> = $850,000

Inventory turnover period = (208,000/850,000)× 365 days

                                          =89.3 days

4 0
3 years ago
Read 2 more answers
The difference between a standard and a budget is that:________.
Alex Ar [27]
A budget usually refers to a department's or a company's projected revenues, costs, or expenses. A standard usually refers to a projected amount per unit of product, per unit of input (such as direct materials, factory overhead), or per unit of output. So the answer will be D.
7 0
3 years ago
A movie star was paid $1 million in 1960 to do a movie. the cpi was 29.3 in 1960 and the cpi in 2017 was 255. approximately how
densk [106]
CPI is the Consumer Price Index.
CPI is one of the most used statistics.
In 1960 :   CPI 29.3 --------------100 %
In 2017 :   CPI 255 --------------- x %
-----------------------------------------------------
29.3 : 255 = 100 : x
29.3 x = 25,500
x = 25,500 : 29.3
x = 870.3 %
For $1 million in 1960 there is $8.703 million in 2017.
Answer: The movie star earned $8.703 million in 2017.                 
4 0
3 years ago
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