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Ksenya-84 [330]
3 years ago
5

Thad is worried about the selling price. Rumors are circulating that other retro brands of cycles may be revived. If so, the sel

ling price for the Western Hombre would have to be reduced to $9,500 to compete effectively. In that event, Thad would also reduce fixed expenses to $670,000 by reducing advertising expenses, but he still hopes to sell 400 units per year. d. What would the net operating income be in this situation
Business
1 answer:
Step2247 [10]3 years ago
3 0

Answer:

$3,130,000

Explanation:

Net operating income = Total revenue - Total cost

Total revenue = price x quantity = $9,500 x 400 = $3,800,000

Total cost = $670,000

Net operating income = $3,800,000 - $670,000 = $3,130,000

I hope my answer helps you

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How does supporting fair trade help consumers?
Soloha48 [4]
Fair trade in smaller territories e.g the carribean islands, support customers in the way that the goods are duty free and exporting and importing is cheaper because no fee is needed for the government of either islands. That's how it works here where I live in the eastern Caribbean.
6 0
3 years ago
Read 2 more answers
You are the beneficiary of a life insurance policy. The insurance company informs you that you have two options for receiving th
Ronch [10]

Answer:

you should accept the payments because they are worth $56,451.91 today

Explanation:

We have to determinate the present value of the proposed annuity of $641 per month over a ten year spawn

Then, the value of the annuity:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 641.00

time 120 (12 months x 10 years)

rate 0.005416667

641 \times \frac{1-(1+0.00541666666666667)^{-120} }{0.00541666666666667} = PV\\

PV $56,451.9083

5 0
3 years ago
revorrow Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets a
nlexa [21]

Answer:

$9,906 F

Explanation:

Calculation as follows:

Budget Income Statement

<u>Particular</u>                                                       $

Revenue (28.4 x 7,000)                          198,800

Direct Labor (2.8 x 7,000)                       (19,600)

Direct Material (10.7 x 7,000)                  (74,900)

Manufacturing Overheads

(38,000 + [1.5 x 7,000] )                           (48,500)

Selling and administrative Expenses

(23,600 + [0.3 x 7,000] )                           (25,700)

Net Operating Income                               30,100

Actual Income Statement

<u>Particular</u>                                                       $

Revenue                                                   205,320

Direct Labor                                             (18,974)

Direct Material                                         (72,252)

Manufacturing Overheads                      (48,320)

Selling and administrative Expenses      (25,768)

Net Operating Income                             40,006

Activity variance for net operating income = Net operating income actual - Net operating income budgeted

Activity variance for net operating income = 40,006 - 30,100

 Activity variance for net operating income = $9,906 F

8 0
3 years ago
You have $35,900 on deposit with no outstanding checks or uncleared deposits. One day you write a check for $4,200 and then depo
maw [93]

Answer:

Explanation: from the question above, disbursement for the period is check for $4,200.

Collection for the period is a check for $6,800.

Net float is $35,900 + $6,800 - $4,200. = $38,500

5 0
3 years ago
An increase in the supply of grain will reduce the total revenue grain producers receive if.
Bogdan [553]

If the<u> demand curve is inelastic</u>, a rise in the supply of grain will result in a decrease in the overall income received by grain producers.

The ability of firms to enter and exit a market over time means that, in the long run, the supply curve is more elastic.

Two basic economic concepts are combined in the law of supply and demand to explain how shifts in the price of a resource, good, or service affect its supply and demand. As the price rises, supply increases while demand decreases. On the other hand, as the price falls, demand increases and supply becomes more limited.

The degree to which changes in price translate into changes in demand and supply is known as the product's price elasticity.

Basic consumer demand is comparatively inelastic, or less responsive to price changes.

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7 0
1 year ago
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