1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Elina [12.6K]
3 years ago
15

Carver Packing Company reports total contribution margin of $72,000 and pretax net income of $24,000 for the current month. In t

he next month, the company expects sales volume to increase by 8%. The degree of operating leverage and the expected percent change in income, respectively, are:
A. 4.0 and 32%

B. 0.33 and 8%

C. 0.33 and 2.7%

D. 3.0 and 8%

E. 3.0 and 24%
Business
1 answer:
vlada-n [284]3 years ago
7 0

Answer:

The degree of operating leverage and the expected percent change in income, respectively, are 3.0 and 24%. The right answer is E.

Explanation:

In order to calculate the degree of operating leverage we would have to use the following formula:

opearting leverage=<u>contribution margin</u>

                                  operating income

operating leverage=<u>$72,000</u>

                                  $24,000

operating leverage=3.0

In order to calculate the degree of expected percent change in income we would have to use the following formula:

percent change in income=percent change in sales×operating leverage

percent change in income=8%×3

percent change in income=24%

The degree of operating leverage and the expected percent change in income, respectively, are 3.0 and 24%

You might be interested in
Which functionality would you include in the product category of the marketing mix?
Licemer1 [7]

The after sales services are included in the product category of market mix.  Option C

<u>Explanation: </u>

The set of ideas or actions taken by a business entity or a company to promote its product or brand in the market. The four P’s of marketing mix are namely,

  • Product - The end product that is offered for sale.
  • Price – The value set for the finished good for selling.  
  • Place – Direct or indirect markets.
  • Promotion – Public relations, advertising, etc.,

From the given, discounts comes under pricing, product image used in advertising comes under promotion and substitute goods belong to a different topic. After-sales services comes under the service branch of the product category.

6 0
3 years ago
Current profit Blank______ and target Blank______ are two strategies used by firms that are pursuing a profit pricing objective.
prohojiy [21]

Current profit maximization and target return are two strategies used by firms that are pursuing a profit pricing objective.

A profit-oriented pricing objective means that a company tried to earn maximum profit with every sale or service provided, and achieve long term business profits.

Current profit maximisation is a price setting objective in which organisation set a price for a product that will give maximum profits, cash flow or return in short term without considering long term.

Target return pricing is a method where the firm determines the price on the basis of a target rate of return on the investment.

The two strategies that a firm use while pursuing a profit pricing objective is current profit maximization and target return pricing.

Learn more about profit pricing objective here

brainly.com/question/15969466

#SPJ4

8 0
2 years ago
Martha and Oleg are competitors in a local market and each is trying to decide if it is worthwhile to advertise. If both of them
ad-work [718]

Answer: Martha does not have a dominant strategy

Explanation:

A dominant strategy is one that a player can embark on and get the highest payoff regardless of the actions of their competitor.

In this scenario, there is no strategy that Martha can embark on that would provide the greatest payout regardless of Oleg's decision. If Martha advertises, Oleg makes the same amount advertising as well. If Martha does not advertise, Oleg would decide not to advertise as well and make the same amount.

Martha therefore has no dominant strategy as Oleg would make the same amount regardless of which decision is taken.

5 0
3 years ago
On January 1, 2018, Brussels Enterprises issues bonds at par dated January 1, 2018, that have a $3,400,000 par value, mature in
pashok25 [27]

Answer:

a. Record the entry for the issuance of bonds for cash on January 1, 2018.

January 1, 2018, bonds are issued

Dr Cash 3,400,000

    Cr Bonds payable 3,400,000

b. Record the entry for the first semiannual interest payment on June 30, 2018.

June 30, 2018, first coupon payment

Dr Interest expense 153,000

    Cr Cash 153,000

c. Record the entry for the second semiannual interest payment on December 31, 2018.

December 31, 2018, second coupon payment

Dr Interest expense 153,000

    Cr Cash 153,000

d. Record the entry for the maturity of the bonds on December 31, 2021 (assume semiannual interest is already recorded).

December 31, 2021, payment of bonds payable

Dr Bonds payable 3,400,000

    Cr Cash 3,400,000

6 0
3 years ago
Price Adjustments This activity is important because as marketing managers set final prices, they start with the list (quoted) p
EleoNora [17]

Answer:

1. Discount

2. Geographical adjustments

3. Allowance

4. Discount

5. Allowance

6. Discount

Explanation:

1. Discount for early purchase and delivery order of chlorine and shock products

2. Geographical adjustment of price, due to shipping and handling costs

3. Allowance given to Raquel for the old ring; to help/encourage her purchase a new one (from the store)

4. Discount on the price or cost of purchase, for customers (like Joshua) who would buy more socks at a go

5. Allowance Capri Sun gives to Safeways Store, for every 15 cases of Capri Sun ordered and displayed in front of the store

6. Discount incentive/bonus Amazon is offering its Prime members. Take note of the nomenclature "Prime members". These are customers who make frequent orders or order a lot of products. Amazon is herefore offering a discount.

NOTE:

- A discount is offered to reduce the cost of purchase - which could be direct or indirect - while an allowance is given to encourage a business deal; as in numbers 3 and 5.

7 0
3 years ago
Other questions:
  • Duke’s Garage has cash of $68, accounts receivable of $142, accounts payable of $235, and inventory of $318. What is the value o
    9·1 answer
  • During the introduction stage of the product life cycle, a(n __________ pricing strategy may be used. this pricing strategy char
    7·1 answer
  • Assume the M&amp;M with corporate taxes. The corporate tax rate is 40%. Your firm is currently unlevered with 100% equity. As of
    9·1 answer
  • The Action Toy Company has decided to manufacture a new train​ set, the production of which is broken into six steps. The demand
    14·1 answer
  • Nissley Wedding Fantasy Corporation makes very elaborate wedding cakes to order. The owner of the company has provided the follo
    15·1 answer
  • On October 1, 20X3, Green Corporation paid $450,000 for all of Yellow Company's outstanding common stock. On that date, the book
    6·1 answer
  • When inflation was expected to be high and it turns out to be low, wealth is redistributed from debtors to creditors. / true or
    10·1 answer
  • The marginal tax rate for a lump-sum tax a. is always positive. b. is zero. c. can take on any value but must be greater than th
    9·1 answer
  • if beginning retained earnings balance is 1800 JD and total revenues is 9800 JD and total expenses 4600 JD and dividends 2100 JD
    8·2 answers
  • Annual dividends of ATTA Corp grew from $0.96 in 2005 to $1.76 in 2017. What was the annual growth rate
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!