Net operating income equals (unit sales - unit sales to break even) × unit contribution margin.
What is net operating income?
Real estate professionals utilize the metric known as Net Operating Income, or NOI, to swiftly determine the profitability of a certain venture. After deducting required operational costs, NOI calculates the revenue and profitability of investment real estate property.
Is net operating income the same as profit?
After all, costs have been deducted, operating profit displays a company's earnings, excluding the cost of debt, taxes, and some one-time expenses. Contrarily, net income is the profit that is still left over after all expenses made during the time have been deducted from sales revenue.
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Pricing objectives frequently reflect corporate goals, while pricing constraints often relate to conditions existing in the marketplace.
Pricing objective or goals give direction to the whole pricing process. While deciding on the pricing objectives you must consider the following:
*The overall marketing, financial, and strategic objective of the company.
*the resources you have available
*consumer price elasticity and price points
*and, the objectives of your product or brand.
Pricing constraints are the factors that limit the latitude of prices that a enterprises sets.
Pricing objectives involves specifying the role of price in enterprise marketing and strategic plans whereas pricing constraints are the factors that limit the range of prices a firm may set.
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Answer:
effect on net income Δ12,000
It will increase by 12,000
Explanation:
special order 15,000 at $3.10
sales 3.10 - variable cost 2.3 = 0.8 contribution margin per unit
15,000 x 0.8 = 12,000 contribution
There are no increase on fixed cost or additional variable cost for shipping or setup for this special order.
They are an example of government agency of which they are
responsible of providing specific services to its people in either a federal,
state, city or even country. Examples of these are mentioned above such as the
U.S department of commerce and the census bureau.