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lutik1710 [3]
3 years ago
8

In which buying method does the company try to predict how much inventory will be needed during a specific time period?

Business
1 answer:
alexgriva [62]3 years ago
7 0
A business<span> that primarily sells products, such as greeting cards or video games ... Services </span>can<span> also be sold in units of </span>time<span>, such as an hourly rate for babysitting or tutoring. Producer. A person or ... A </span>buying method<span> that </span>tries to predict<span> in advance how </span>much inventory will be needed during a specific time period<span>. </span>
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opportunity cost is define as given below

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Answer:

Overall effect of the change is an increase in net operating income of $1800

Explanation:

The net operating income  with additional advertising spend is shown below:

Sales (6620*$150)                                     $993,000

Variable expenses(60%*993000)           ($595,800)

contribution margin                                   $397,200.

Fixed expenses($193000+$5400)          ($198,400)

Net operating income                               $198,800

The net operating income  without additional advertising spend is shown below:

Sales (6500*$150)                                     $975,000

Variable expenses(60%*975,000)           ($585,000)

contribution margin                                   $390,000

Fixed expenses                                        ($193,000)

Net operating income                               $197,000

The overall effect of the change is an increase in net operating income of $1800($198800-$197000)

       

       

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