Based on the overall mean, the average range, and the control limit factor, the upper control limit is 55.437.
<h3>What is the upper control limit?</h3>This can be found by the formula:
= Overall mean + (Mean factor for sample size 7 x Average range)
Solving gives:
= 54.75 + (0.419 x 1.64)
= 55.437
Find out more on control limits at brainly.com/question/15581863.
Answer:
a. Net income is decreased by $1,600.
b. Advertising budget should not increased because it is no making enough benefit to increase or stabilize the net income. Net effect of this change is a loss of $1,600.
Explanation:
Current Operating income = ( 3,600 x $95 x 40% ) - $79,000 = $136800 - $79,000 = $57,800
After Increment
Sales = ( 3,600 x $95 ) + $17,000 = $359,000
Contribution margin = $359000 x 40% = $143,600
Fixed Cost = $79,000 + $8,400 = $87,400
Net Income = $143,600 - $87,600 = $56,200
Net income Change = $56,200 - $57,800 = -$1,600
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