Answer:
b. decrease of $8,900
Explanation:
the sales price and variable costs are missing, so I looked them up:
sales price = $160
variable costs = $48
current operating income:
sales revenue $800,000
variable costs <u>($240,000)</u>
contribution margin $560,000
fixed costs <u>($499,000)</u>
operating income $61,000
if the company follows the marketing manager's plan:
sales revenue $867,300
variable costs <u>($283,200)</u>
contribution margin $584,100
fixed costs <u>($532,000)</u>
operating income $52,100
operating income will decrease by $61,000 - $52,100 = $8,900
Deciding how to make the best use of limited resources to satisfy virtually unlimited wants is known in economics as economizing behavior.
<h3>What is Economics?</h3>
Economics is a social science that examines the decisions that people, businesses, governments, and nations make regarding the distribution and consumption of products and services.
Economics is the study of how individuals divide up finite resources between individual and group uses for production, distribution, and consumption.
Economics has two subfields: macroeconomics and microeconomics. Efficiency in exchange and production is the main focus of economics. Both the Consumer Price Index (CPI) and the Gross Domestic Product (GDP) are frequently used economic statistics.
To spot prospective trends or predict the future of the economy, economists use economic indicators like the GDP and the consumer price index.
To know more about Economics, visit
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It resulted in faster and cheaper long distance shipping and this was the way the railroad technology helped to improve profits for companies. The correct option among all the options that are given in the question is the first option or option "a". I hope it helped you.
Answer:
See below
Explanation:
With regards to the above information, the contribution margin is computed as seen below.
Contribution margin per composite unit = Selling price per composite unit - Variable cost per composite unit
= $150 - $50
= $100
Hence, the contribution margin per composite unit is $100
Answer:
Forward vertical integration
Explanation:
Forward vertical integration is a type of strategic move that consists in acquiring a firm that was either a supplier, or a potential supplier.
In this case, Htc acquired a design firm that was probably part of its supply chain before (providing the design for the smartphones). In this way, htc has become more competitive because it now has merged the process of manufacturing and design under its control.
