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
Arlecino [84]
3 years ago
13

Block Island TV currently sells large televisions for $380. It has costs of $320. A competitor is bringing a new large televisio

n to market that will sell for $360. Management believes it must lower the price to $360 to compete in the market for large televisions. Marketing believes that the new price will cause sales to increase by 10%, even with a new competitor in the market. Block Island TV sales are currently 150,000 televisions per year. What is the change in operating income if marketing is correct and only the sales price is changed? Group of answer choices $6,600,000 $3,000,000 $(6,600,000) ($2,400,000)
Business
1 answer:
photoshop1234 [79]3 years ago
5 0

Answer:

Effect on income= (2,400,000)

Explanation:

Giving the following information:

Current selling price= $380

New selling price= $360

Unitary cost= $320

Units sold= 150,000*1.1= 165,000

<u>We need to calculate the effect on income:</u>

Effect on income= contribution margin new sales - contribution margin old sales

Effect on income= 15,000*(360 - 320) - 150,000*(380-360)

Effect on income= (2,400,000)

<u>Prove:</u>

New income= 165,000*40= 6,600,000

Actual income= 150,000*(380-320)= 9,000,000

Difference= (2,400,000)

You might be interested in
The Art of Getting the greatest benefits from limited Financial Resources is called
Inessa05 [86]
It's called living frugally. 
6 0
3 years ago
Read 2 more answers
The value of a financial asset is the​ ________.
nadezda [96]

Answer: The correct answer is "B. present value of all of the future cash flows that will be received".

Explanation: The value of a financial asset is the​ present value of all of the future cash flows that will be received.

To value a financial asset, all future cash flows must be taken into account, therefore their value will be the sum of the present values of each of the future cash flows.

8 0
3 years ago
Dominic is a customer of Apexoria Credit Union she has $22,978 in a checking account and $2,000 in Saving how much of Dominique'
Nikitich [7]
The Answer is D.$0 Good Luck
8 0
3 years ago
Insurance is only used by businesses True or False
White raven [17]

Answer:

false

Explanation:

everyone uses insurance

3 0
3 years ago
Sophia Company purchased equipment costing $120,000. The equipment has a residual value of $20,000 and an estimated useful life
mixer [17]

Answer:

Year 1 : $20000

Year 2 : $460000

Explanation:

Year 1 calculation:

120000-20000/50000*10000 =$20000

Year 2 calculation:

120000-20000/50000*23000=$46000

8 0
3 years ago
Other questions:
  • Break-even analysis for a service company involves identifying the correct measure of a.direct labor for the unit of analysis. b
    9·1 answer
  • The country of Norway has offers free college to students and even some universities offer free tuition to international student
    9·1 answer
  • Using a change in supply and/or demand, explain the following phenomena: a. All else constant, gasoline prices are higher in sum
    11·1 answer
  • At the annual shareholders' meeting of Garfield, Inc., one shareholder turned to the other and whispered, "Our CEO, Mike Perez,
    13·1 answer
  • Clark manufactured housing company charges $500 for deliveries within 50 miles and $800 for deliveries 51 to 100 miles away from
    5·1 answer
  • In practice, a common way to value a share of stock when a company pays dividends is to value the dividends over the next five y
    6·2 answers
  • Jason Ford, the CEO of the Green-Plus Company, was known among businesspeople for his qualities of self-discipline, friendliness
    14·1 answer
  • Client 5 I am a 45-year-old agricultural scientist. I have been working for years to come up with a natural egg that is free of
    8·1 answer
  • A popular hotel has continued to lose business in its room service food sales over the last five years. Using the Six Sigma DMAI
    7·1 answer
  • Say’s law argues that a given ____________________ must create an equivalent ________________________ somewhere else in the econ
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!