Answer:
Operating income increases by $40,000.
Explanation:
Given that,
Total fixed costs = $840,000
Sale price per unit = $60
Variable cost per unit = $30
Additional amount spend on advertising = $35,000
Sales volume would increase by 2,500 units.
Contribution margin:
= Sales - Variable costs
= $60 - $30
= $30 per unit
Increase in operating income:
= Increase in contribution margin - Increase in Fixed costs
= ($30 × 2,500 units) - $35,000
= $75,000 - $35,000
= $40,000
Answer:
Agency by ratification
Explanation:
Agency by ratification is a situation where an agent or a company performs an act while claiming to be the agent of another person without his knowledge.
The principal later accepts and recognises the action as being on their behalf after the fact.
Normally the action by the agent would be invalid, but if it is recognised by the principal it is called agency by ratification and the action is now valid.
When an unauthorised action is taken on behalf of a principal he has the final decision on whether to adopt by signing, or not to adopt
Answer: $89.41
Explanation:
In the stock market, the price is a stock on its ex dividend date is usually marked down by it's amount of dividend. Eg, if a stick trades at $5 and declares a $1 dividend, the stock will be sold at $4.
In the above scenario we'd have to account for tax in the formula so this is what it will look like,
Ex Dividend Price = Pre dividend Price - Cash dividend Payment
= $94.45 - $6.3 x (1 - 0.2)
= $94.45 - $5.04
= $ 89.41
The Ex dividend Price is $89.41
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Answer:
The correct answer is the option A: Nothing. Once you determine the root cause, your work is done whether it is in your control or not.
Explanation:
To begin with, the question is related to what is called "Root Cause Analysis" known in the management field as a process by which the managers tend to identify what cause a problem by looking deeply into the root of it thanks to an excesive analysis done by a team. It is necessesary to clarify that the main purpose of this method is just to identify the problems' root and from there to come out with solutions regarding the situation if able, but it is not the point of the analysis to take action or to implement those solutions. So therefore that if the situation turns to be out of the control of the person responsible for the analysis then there is nothing he could do because his job has already been done.