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Stells [14]
4 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]4 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).

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Landen's salary is $58,000 a year, and he contributes $4000 annually to his 401(k), while his employer matches 60%. What is his
LUCKY_DIMON [66]

Answer:

401k+4058.6

Explanation:

8 0
3 years ago
Prisly Inc. is a multinational company that specializes in manufacturing and selling high-end cars. It launches a new car, the G
Liono4ka [1.6K]

Answer:

3. cannibalization

Explanation:

Cannibalization is a decline in the sales of one or more product when a new product is introduced into the market by the same producer.

When Prisly Inc introduced Gwen 2.0, the sales of other cars produced by Prisly fell.

3 0
4 years ago
Which one of the following is NOT an advantage of buyer's agency? The efforts that a buyer's agent exerts on behalf of the buyer
sasho [114]

"The use of a buyer's agent guarantees that the buyer will get a property for the lowest price possible" is NOT an advantage of buyer's agency.


It is true that the efforts that a buyer's agent exerts on behalf of the buyer cannot be compromised and that the buyers can freely communicate confidential information without fear that disclosing that information will weaken their negotiating position. The buyers will also have the benefit of a licensee's expertise in finding the right property, negotiating the purchase and attending to closing details.

However, using a buyer's agent won't guarantee that the buyer can get the best deal on a property; as a result, this is not one of the advantages of buyer's agency. The agent would only consider what is best for the buyer and not the cheapest.

Agents will also charge extra fees and commissions for representing their buyers. To avoid additional expenses, some buyers and sellers choose not to use an agent. In order to save more money and find a property for the lowest price, buyers should avoid using an agent and instead deal directly with the seller.

Learn what happens when there's no buyer agency agreement in place here: brainly.com/question/28066390

#SPJ4

4 0
1 year ago
The central bank of Albernia likes to use changes in the reserve requirement to manage the money supply. The commercial banks of
andreev551 [17]

Answer:

$10,000 million

Explanation:

The computation of  the change in the money supply is shown below:

At 10%

Required reserves= deposits × required reserve ratio

= $1000 million × 10%

= $100 million

Now

The total amount of money supply is

New deposits= 1 ÷ required rate of return  x deposits

= 1 ÷ 10% × $1000 million  

= 10 x $1000

= $10,000 million

At 5%

As we know that

Required reserves= deposits × required reserve ratio

= $1000 million × 5%

= $50 million

Now

The total amount of money supply is

New deposits= 1 ÷ required rate of return  x deposits

= 1 ÷ 5% × $1000 million  

= 20 x $1000

= $20,000 million

Now change in supply is

= $20,000 million -$10,000 million

= $10,000 million

7 0
3 years ago
​(Identifying spontaneous,​ temporary, and permanent sources of​ financing) Classify each of the following sources of new financ
Ivanshal [37]

Answer:

a) Permanent source of finance

b) Spontaneous source of finance

c) Permanent source of finance

Explanation:

With transaction b), The credit is for day to day operations making it a spontaneous funding but credit usually do not take more than 90 days to pay therefore temporal can also fit in nonetheless Spontaneous is more appropriate as the credit is a spontaneous source of funding.

5 0
4 years ago
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