Answer:
The correct answer is: so high.
Explanation:
The price of advertisement follows the demand and supply fluctuations. When demand increases, so does the price and, when demand decreases, so does the price. Several factors influence an increase in demand. In this case, the reason why a 30-second <em>announcement costs more</em> during major events such as the World Cup relies on the massive increase in the audience during this popular event. The high costs companies incur in promotions are supposed to be offset with the revenues it generates after having millions watch their products.
The answer is cost-based.
Answer:
The total fixed costs must be:
$36,000.
Explanation:
a) Data and Calculations:
Contribution margin ratio for the new product = 0.2
Target operating income = $60,000
Targeted sales volume in dollars = $480,000
Fixed costs = targeted sales volume in dollars multiplied by contribution margin ratio, minus target operating income
Fixed costs = ($480,000 * 0.2) - $60,000 = $36,000
b) The focus should be on the break-even formula for dollar sales with a target profit. When the formula is reversed, the fixed costs can be calculated as shown above.
Answer:
c y = 55,000 + 126.50X
Explanation:
Fixed Costs = $55,000
Variable Costs = $35 + $11.50 + $80 = $126.50
Therefore, The cost function best represents these costs is y = 55,000 + 126.50X