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suter [353]
4 years ago
14

g Dybala Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales S

elling price $ 110 100 % Variable expenses 66 60 % Contribution margin 44 40 % The company is currently selling 5,060 units per month. Fixed expenses are $180,000 per month. The marketing manager believes that a $6,300 increase in the monthly advertising budget would result in a 200 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change
Business
1 answer:
Marianna [84]4 years ago
5 0

Answer:

Effect on income=  $2,500 increase

Explanation:

Giving the following information:

Contribution margin= $44

The marketing manager believes that a $6,300 increase in the monthly advertising budget would result in a 200 unit increase in monthly sales.

To calculate the effect on income, we need to use the following formula:

Effect on income= increase in total contribution margin - increase in fixed costs

Effect on income= 200*44 - 6,300

Effect on income=  $2,500 increase

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Naddik [55]
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3 0
4 years ago
Mary Willis is the advertising manager for Bargain Shoe Store. She is currently working on a major promotional campaign. Her ide
alexandr1967 [171]

Answer:

So the break even point is increased by 4,125 units

Explanation:

The computation is shown below:

As we know that

Break even point in units is

= (Fixed expenses ) ÷ (Contribution margin per unit)  

where,  

Contribution margin per unit = Selling price per unit - Variable expense per unit

So the current break even point is

= $270,000 ÷ ($40 - $24)

= $270,000 ÷ $16

= 16,875 units

And, if mary ideas are used, so break even point is

=  ($270,000 + $24,000) ÷ ($38 - $24)

= $294,000 ÷ $14

= 21,000 units

So the break even point is increased by 4,125 units by taking the difference

3 0
3 years ago
Obama Company has identified that Bill Clinton’s receivable account of $100 is uncollectible. What is the journal entry needed t
DerKrebs [107]

Answer:

Allowance for Doubtful Accounts 100 Accounts Receivable 100

Explanation:

The allowance method first estimates an allowance for doubtful debts.When the company receives the actual figure of the amount that have gone wrong, it writes off the  trade receivable and utilizes the allowance provided for

<u>When allowance is estimated </u>

Bad Debts (debit)

Allowance for doubtful debts (credit)

<u>When the  actual figure of the amount that have gone wrong is obtained</u>

Allowance for doubtful debts (debit)

Account Receivable (credit)

4 0
3 years ago
Bianca took out a $2,600 unsubsidized Stafford loan. She will be attending school for four years, and she wishes to have the loa
Gwar [14]

Interest capitalization is defined as the unpaid interest when added to the principal amount of the loan. It increases the overall cost of the loan.

Bianca will have to pay $13.43 monthly to avoid interest capitalization.

Given that:

Principal value of loan = $2600

Maturity Time = 10 years = 120 months  

Interest rate = 6.2% = 0.062

Now, to find the amount of payment by using the formula:

\rm Payment&=\rm \dfrac{Rate\times Principal}{1-(1+rate)^{time}}\\\\\\\rm Payment&=\rm\dfrac{0.062 \times 2600}{1-(1+rate)^{120}}\\\\\rm Payment &= \rm \161.32

Total payment that is to be paid in 1 year:

\rm Monthly\; Payment &=\rm\dfrac{161.32}{12}&= \$13.43

Thus, the payment that Bianca has to pay is  $13.43.

To know more about interest capitalization, refer to the following link:

brainly.com/question/417585

3 0
2 years ago
Identify and explain two characteristics of the packaging of the chocolate bars​
zubka84 [21]
Chocolate products are protected throughout the distribution process. Flexible packaging keeps goods fresher for longer, as packaging can include foil layers that ensure that products are preserved. Flexible chocolate packaging provides valuable nutritional information that assist consumers in correct product selection.
hope it helps you
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5 0
3 years ago
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