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rosijanka [135]
3 years ago
8

The marketing manager believes that increasing advertising costs by $74,000 in 2020 will increase the company’s sales volume to

12,700 units. Prepare a forecasted contribution margin income statement for 2020 assuming the company incurs the additional advertising costs.
Business
1 answer:
serious [3.7K]3 years ago
4 0

Answer:

Instructions are below.

Explanation:

Giving the following information:

The marketing manager believes that increasing advertising costs by $74,000 in 2020 will increase the company’s sales volume to 12,700 units.

<u>We weren't provided with enough information to solve the requirement. But, I will provide the general structure:</u>

<u></u>

Sales= (number of units*selling price per unit)=

Total variable cost= (total variable cost per unit*number of units)=

Contribution margin=

Fixed costs= (fixed costs + incremental fixed costs)=

Net operating income

<u>If we want to determine the effect on income without an income statement:</u>

Effect of income= incremental units*contribution margin - incremental fixed costs

Contribution margin= selling price - unitary variable cost

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5 0
3 years ago
Consider the following hypothetical transactions of the Balance of Payments of Country A: 1. Country A's firms export to Country
serious [3.7K]

Answer:

The net contribution to the Current Account Balance of Country A is $50

Explanation:

The credit entries include those entries which bring the money into the economy whereas the debit entries are those entries in which the expenses are more incurred or we can say more outflow of cash is there.

The debit and credit entries are shown below:

Debit entries:

1.  Country A's firms import from Country C $500 worth of steel

2. Country A's residents buy Country C's government bonds for $1000

3.  Country A's residents pay $100 in dividends on Country C's investments in Country A

Credit entries:

1. Country A's firms export to Country B $100 worth of grain

2. Country A's workers resident in Country B receive $500 in wages

3. Country A's residents receive $50 in interest from Country C's bonds they owned

4. Country A's central bank acquires $1000 worth of Country C's currency

Now the net contribution of the current account balance would be

= Total credit balance - total debit balance

= $100 + $500 + 50 + $1,000 - $500 - $1,000 - $100

= $50

The negative amount represents debit balance whereas the positive amount reflect a credit balance

5 0
3 years ago
If equilibrium price falls and the equilibrium quantity of the good purchased decreases, what has happened to either the supply
Sindrei [870]

Answer:

Demand decreases.

Explanation:

If demand decreases while supply remains unchanged, equilibrium price and quantity would fall.

If supply increases, equilibrium price would fall and quantity would rise.

If supply decreased, equilibrium price would rise and quantity would fall

If demand increases, equilibrium price and quantity would rise.

I hope my answer helps you

4 0
3 years ago
Destiny Corporation is preparing its statement of cash flows by the indirect method. Destiny has the following items for you to
Semenov [28]

Answer:

O+ a. Increase in accounts payable

F- b. Payment of dividends

O- c. Decrease in accrued liabilities

F+ d. Issuance of common stock

O- e. Gain on sale of building

O+ f. Loss on sale of land

O+ g. Depreciation expense

O- h. Increase in merchandise inventory

O+ i. Decrease in accounts receivable

I- j. Purchase of equipment

Explanation:

The requirement of the question is to indicate whether each of the items is an addition to addition to net income (O+) or subtraction (O-) under operating activities section, investing activity (cash inflow I+), (cash outflow I-),financing activity (cash inflow F+), (cash outflow F-) and activity not used to prepare the cash flows.

All the signs above are correct.

5 0
3 years ago
n autarky, suppose that equilibrium sugar price is $100 per ton in Birdonia, a small agricultural nation. Now, suppose Birdonia
Rainbow [258]

Answer:

the domestic price of sugar will increase to $125.

Explanation:

Since the world price of sugar is higher than the domestic price, domestic producers of sugar will export their products in order to earn a higher profit. That will eventually lead to an increase in the equilibrium price from $100 (former equilibrium price) to a higher price equal to the world price ($125).

6 0
3 years ago
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