Answer:
Increase by $6,000
Explanation:
Calculation to determine the net operating income
Using this formula
Net operating income=Expected sales increase ×Contribution margin ratio-Fixed expenses
Let plug in the formula
Net operating income=$70,000 x 30% - $15,000
Net operating income=$21,000-$15,000
Net operating income=$6,000 increase
Therefore the net operating income will increase by $6,000
Answer:
A) new buy
Explanation:
A new buy situation is basically when you have to purchase a product or service for the first time. Since the company hasn't purchased this product or service before, the buying team will have to define several aspects for the first time and that takes time (e.g. potential vendors, different product qualities, etc.). There is no precedent buying situation, so the entire process must be completed.
First, find the number of investment, then use that # to find how much. If 5.28 is for per share, the current value would be about 11.50 of an increase.
Answer: Variable costing treats fixed overhead as a period cost.
Explanation:
The variable costing system is the process which included all the variable like the production cost and the direct labor. The cost are used as the period cost in the fixed overhead and they are charge in terms of the income in the variable costing. And in this method the product cost are not used as the fixed overhead but it is used as the period cost.
Your answer would be, If there is a price increase for a good; <u>People might buy a LESS EXPENSIVE substitute good.</u>
<u>(Substitution Effects) =====> Example =====></u> If the Price of Coffee goes up, Then people will substitute for Tea, Because it is less cheaper. (If that makes sense.).
Hope that helps!!!!! -P- : )