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suter [353]
3 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]3 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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torisob [31]

Answer:

250 hours.

Explanation:

Cost of course : $500

The extra income from the course is $2 per hour

to pay off the cost of the course requires earning $500 by working at a rate $2 per hour.

Number of hours required = $500/2

=250 hours.

7 0
2 years ago
The market demand curve for a normal good will shift to the left ​(decrease​) when the price of a substitute good ▼ increases de
suter [353]

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3 years ago
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larisa [96]

Answer:

Explanation:

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3 years ago
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Answer:

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3 years ago
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