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Molodets [167]
4 years ago
11

Fixed expenses are $499,000 per month. The company is currently selling 5,000 units per month. The marketing manager would like

to cut the selling price by $13 and increase the advertising budget by $33,000 per month. The marketing manager predicts that these two changes would increase monthly sales by 900 units. What should be the overall effect on the company's monthly net operating income of this change?
A) increase of $56,100B) decrease of $8,900C) increase of $99,300D) decrease of $56,100
Business
1 answer:
liberstina [14]4 years ago
6 0

Decrease of \$8,900 should be the overall effect on the company's monthly net operating income of this change.

Option-B

<u>Solution:</u>

The sales add up to a cumulative of \$800, eight hundred dollars (5000 \ units\times \$160; \ 5900 \ units\times \$147)

Variable expenses being 240,000 and Contribution type being margin being 560,000 (five hundred thousand sixty thousand);

Fixed expenses add up to a cumulative of an approximate 499,000 (four hundred thousand nine hundred and ninety nine)

Net operating income would be \$61,000 (sixty one thousand) and the decrease would be \$8,900.

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Jill Gracie's current checkbook balance is $8,900.15. She opened up the bank statement and saw the bank's balance at $7,000.10.
Mrrafil [7]

Answer:

The reconciled balance is:

Explanation:

Cash  8900,15

 

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7 0
3 years ago
How does coved-19 effect in how mangers make decisions?​
Anna [14]

Answer:

1. not all people want to wear a mask when they walk into their store

2. a lot of their workers probaly quit or have corona, this would make it harder to make decisions with not a lot people to work!

Explanation:

7 0
3 years ago
Read 2 more answers
Which of the following is not generally regarded as a legitimate reason for gov't to intervene in a market?
Bess [88]

Answer:

C. To enforce property rights

Explanation:

Government intervention in market can be non materistically via regulation , materistically via taxes & subsidy.

Although the second materislistic way of tax, subsidy comes under the perview of 'Government Budget' .

Government budget is anual financial statement showing economy's expected revenue & expenditure .

Economic growth & stability by reallocation of resources , reducing income inequalities - reflect 'efficiency' & 'equity' as valid reasons .

Foreign protection is also not invalid depending upon the initial budding stage of a developing economy & its global stand. Eg - India 1950 to 1990 .

However all these are progressive legitimate reason for govt. Intervention .

But , enforcing property rights is a feature of 'socialistic (communistic) economy - which has its own demerits like loss of consumers soveireignity , lack of postive competitive efficiency , govt overburden.

7 0
4 years ago
Freitas Corporation was organized early in 2021. The following expenditures were made during the first few months of the year: A
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Answer:

Dr Organization costs ($12,000 + $3,000) 15,000

Dr Patent ($20,000 + $2,000) 22,000

Dr Equipment 30,000

Dr Preopening expenses 40,000

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Explanation:

Organization costs are the initial costs incurred to start a business. They include attorney fees, and any other legal and registration fees required by both municipal state and federal government.

Any fees related to the purchase of the patent, e.g. commissions paid or attorney fees must be included in the purchase cost of the patent.

8 0
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Luigi minimized the stress of testing positive for HIV by viewing this circumstance as an opportunity for a renewed religious co
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The person undergoing stress may be emotional and the outcomes of the person depend on the level of the stress he/she is undergoing. The person with stress may feel tensed, angry and frustrated.

3 0
3 years ago
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