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barxatty [35]
2 years ago
15

Rather than purchase new equipment, the marketing manager argues that the company's marketing strategy should be changed. Rather

than pay sales commissions, which are currently included in variable expenses, the company would pay salespersons fixed salaries and would invest heavily in advertising. The marketing manager claims this new approach would increase unit sales by 50% without any change in selling price; the company's new monthly fixed expenses would be $331,200, and its net operating income would increase by 25%.
Compute the break-even point in dollar sales for the company under the new marketing strategy.

Morton Company's contribution format income statement for last month is given below:

Sales (46,000 units * $24 per unit) $1,104,000
Variable expenses $772,800
Contribution margin $331,200
Fixed expenses $264,960
Net operating income $66,240
Business
1 answer:
Kitty [74]2 years ago
5 0

Answer:

Break-even point (dollars)= $1,104,000

Explanation:

Giving the following information:

The company's new monthly fixed expenses would be $331,200.

Selling price= 24

Unitary variable cost= (772,800/46,000)= 16.8 per unit

With this information we can calculate the break-even point both in units and dollars:

Break-even point= fixed costs/ contribution margin

Break-even point= 331,200/ (24 - 16.8)= 46,000 units

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 331,200/ (7.2/24)= $1,104,000

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goldenfox [79]

Answer:

Dissatisfied workers lead to lack of motivation, poor attitude and lack of productivity.

Explanation:

The consequences of having dissatisfied workers include to job stress, lack of motivation, poor attitude, lack of productivity and increase in employee  turnover rates.

Job satisfaction theories aims to identify factors influencing job satisfaction and how employee job satisfaction can be increased. Job satisfaction theories are Maslow’s Needs Hierarchy Theory, Herzberg’s Motivator-Hygiene Theory, Job Characteristics Model and Dispositional Approach. Job satisfaction theories are essential because it helps in knowing what motivates workers and how productivity can be increased at the workplace.

Extrinsic motivation are external sources of motivation such as title, financial rewards, power, fame and status while Intrinsic motivation are internal motivation sources such as learning and growth, service and duty, achievement of goals etc. Intrinsic and extrinsic motivation are essential in motivating employees in order for them to achieve organizational goals, be creative and have a good attitude towards their job.

8 0
3 years ago
In the Investment marketplace, Investors will likely accept a high-risk investment only if it promises
katrin2010 [14]

Answer: C. high returns

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6 0
2 years ago
Effective SCM requires reducing cost, increasing inventory velocity and compressing cycle time. What of the following is true? 1
-Dominant- [34]

Answer:

The answer is: 4) More frequently than not, the three objectives are compatible.

Explanation:

Toyota is famous for its Just in Time (JIT) management. They are the absolute kings of efficient supply chain management and they were able to do it by making the three objectives compatible. That doesn't mean that they all have to be dealt with at the same time and with the same intensity.

Toyota's first goal was to reduce costs and in order to reduce costs they had to increase their inventory turnover. Then they discovered that in order to keep increasing inventory turnover, they had to compress their cycle time. When they were able to compress their cycle time, their turnover increased even more and their costs were lowered. The system produces continuous feedback and their efficiency keeps increasing.

I once visited one of their factories that produces almost 500 pickup trucks per day and every single work station had available inventory for only 4 trucks; only 4 engines, 16 doors, etc. It is amazing how they do it considering that every 3 minutes one truck is fully produced.

The three objectives are not only compatible, but they are absolutely necessary for the SCM to be effective.

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2 years ago
For an automobile company, the total overhead applied was $48,000,000 at the end of the year. Actual overhead was $52,850,000. C
ICE Princess25 [194]

Answer:

Net income decreased by $4,850,000.

Explanation:

Given total overhead applied = $48000000

The actual overhead = $52850000

Over/under Applied overhead = total overhead applied - Actual overhead at the end of the year.

Over / under Applied overhead = 48000000-52850000

Over / under Applied overhead = -$4850000

From the calculation, it can be seen that the overhead is underapplied therefore when under applied overhead allocated to cost of goods sold then cost of goods sold decreased by $4850000.

4 0
3 years ago
The shifting balance from tangible goods to intangible services has marketing leaders adopting​ ________ as a guiding principle
aliina [53]

A marketing leaders adopts a ​service-dominant logic as guiding principle when there is shift in balance from tangible goods to intangible services.

<h3>What is ​service-dominant logic?</h3>

This logic refers to a perspective which introduces a new method for articulating an alternative view of exchange and value creation in the markets.

In conclusion, sometimes, a marketing leaders adopts a ​service-dominant logic as guiding principle when there is shift in balance from tangible goods to intangible services.

Read more about service-dominant logic

<em>brainly.com/question/17961245</em>

7 0
1 year ago
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