1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Stells [14]
3 years ago
11

The company is currently selling 5,000 units per month. Fixed expenses are $243,000 per month. The marketing manager believes th

at an $11,000 increase in the monthly advertising budget would result in a 180 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:
REY [17]3 years ago
7 0

Answer:

If the company decides to increase its advertising budget, its net profits will  decrease by $200 (= $56,800 - $57,000).

Explanation:

The company is currently selling 5,000 units per month at $150 per unit, and its total variable costs are $90 per unit.

Fixed expenses are $243,000 per month.

Current income statement:

sales revenue =                    $750,000

minus variable costs =         ($450,000)

<u>minus fixed costs =              ($243,000)  </u>

net income =                           $57,000

If the company increases its advertising budget be $11,000 it should sell 180 more units per month, the new income statement would be:

sales revenue =                    $777,000

minus variable costs =         ($466,200)

<u>minus fixed costs =              ($254,000)  </u>

net income =                           $56,800

If the company decides to increase its advertising budget, its net profits will  decrease by $200 (= $56,800 - $57,000).

You might be interested in
What are 2 characteristics for intellectual property rights? (in Entrepreneurship)​
elena-14-01-66 [18.8K]
<h2>Copyright Protection </h2>
  • A copyright will protect the following categories of works:

literary works

  • musical works, including any accompanying words
  • dramatic works, including any accompanying music
  • pantomimes and choreographic works
  • pictorial, graphic and sculptural works
  • motion pictures and other audiovisual works
  • sound recordings
  • architectural works
  • computer programs (sometimes the graphical user interface) and websites
<h2>Patents </h2>

Patents protect processes, methods and inventions that are "novel," "non-obvious" and "useful." If granted, a patent gives you a 20-year monopoly on selling, using, making or importing an invention into the United States.

(These are 2 characteristics of property rights)

5 0
3 years ago
If you ignore a margin call, your broker:
MArishka [77]

Answer:

The correct answer is letter "D": may sell some of your securities to repay the margin loan.

Explanation:

A Margin Call is issued when the equity in a margin account falls below a certain level. In the U.S. this level is set by the Federal Reserve (Fed) Board "Regulation T". Many brokers have their margin requirements known as "house requirements" usually with maintenance levels of 30 to 40%.

When a margin account falls below the margin limit and the trader ignores this, the broker can sell some of the securities of the trader to cover the margin losses.

6 0
3 years ago
What do we call computerized machine that allows Bank customers to perform transitions​
vova2212 [387]

Answer:

I think it is Automated teller machine

3 0
3 years ago
Read 2 more answers
Suppose that for each one-percentage-point increase in the interest rate, the level of investment spending declines by $1 billio
elixir [45]

Answer:

We expect investment spending to increase by $ 1 billion

Explanation:

If investment decreases by $ 1 billion if a 1 % change is made then that is sensitivity of investment to change in interest rate. Thus if there is a 1 % reduction in interest rate we expect to see a $ 1 billion increase in spending if this holds true.

5 0
3 years ago
Which organization establishes relationships with financial institutions to offer home ownership programs that include down paym
iVinArrow [24]

National Housing Federation establishes relationships with financial institutions to offer homeownership programs that include down payment assistance through grants and favorable terms.

<h3>What is National Housing Federation?</h3>
  • NHF housing association members provide homes for approximately six million people and are motivated by a social purpose: providing good quality housing at an affordable price.
  • NHF assists its members in achieving that social purpose through ambitious work that results in positive change.
  • The NHF offers interest-free season ticket loans and a cycle-to-work salary sacrifice scheme that covers the cost of a bike and accessories.
  • NHF also provides an interest-free loan to assist you with a deposit when renting a home.
  • The National Housing Federation works with financial institutions to offer homeownership programs that include down payment assistance in the form of grants and favorable terms.

Therefore, National Housing Federation establishes relationships with financial institutions to offer homeownership programs that include down payment assistance through grants and favorable terms.

Know more about National Housing Federation here:

brainly.com/question/899282

#SPJ4

7 0
2 years ago
Other questions:
  • A seller tells a real estate professional "don’t show my house to anybody not born in the United States." In this circumstance,
    6·1 answer
  • What is an outstanding check?
    11·1 answer
  • Which is most likely to result from a layoff of factory workers in the town?
    15·2 answers
  • If Clancy's boss is interested in a graphical representation of the relationship between the price and quantity of televisions d
    14·1 answer
  • When a woman died, a deed was found in her desk drawer. the deed had been signed, dated, and acknowledged but not recorded. the
    8·1 answer
  • Nash Corporation has outstanding 343,000 shares of $10 par value common stock. The corporation declares a 10% stock dividend whe
    11·1 answer
  • In a Chapter 11 bankruptcy, a class of creditors is considered to have accepted the bankruptcy plan when: Group of answer choice
    15·1 answer
  • Whistleblowing is term being used for making a disclosure that is in the public interest. It will usually occur when an employee
    9·1 answer
  • At the end of 2019, Uma Corporation is considering a major long-term project in an effort competitive in its industry. The produ
    9·1 answer
  • from a profit perspective, it makes sense for firms to disperse their productive activities to those countries where they can be
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!