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
Georgia [21]
4 years ago
6

A company’s manager estimates that in the upcoming year, increasing advertising costs by $25,000 will cause sales revenue to inc

rease by $60,000. If the company’s contribution margin ratio is 35%, what will be overall effect on net income? Group of answer choices
Business
1 answer:
Vinvika [58]4 years ago
4 0

Answer:

Loss of $4,000 in overall net income

Explanation:

Contribution margin is the net of the sale price and variable cost. Contribution margin ratio is the ratio of contribution to sales.

According to given data

Sales = $60,000

Contribution Margin = $60,000 x 35% = $21,000

Net Income = Contribution margin - Fixed costs = $21,000 - $25,000 = -$4,000

Advertisement Expense is a fixed cost.

There will be a loss of $4,000 added to overall net income.

You might be interested in
Assume that a speculator purchases a put option on British pounds (with a strike price of $1.50) for $0.05 per unit. A pound opt
gladu [14]

Answer:

-$1,562.50

Explanation:

Calculation to determine The highest net profit possible for the speculator based

Premium of the option = $.05 per unit * (31,250 units)

Premium of the option= -$1,562.50

Therefore Based on the information given and the above calculation The HIGHEST NET PROFIT that will be possible for the speculator will be -$1,562.50

6 0
3 years ago
A local bank’s advertising reads: "Give us $45,000 today, and we’ll pay you $800 every year forever." If you plan to live foreve
m_a_m_a [10]

Answer:

1.78%

Explanation:

The computation of the annual interest rate earn is shown below:

= Every year payment ÷ Present value × 100

= $800 ÷ $45,000  × 100

= 1.78%

We simply divide the every year payment by the present value so that the correct annual interest rate can come

So, we consider all the information which is given in the question

3 0
3 years ago
For each price in the following table, calculate the firm's optimal quantity of units to produce, and determine the profit or lo
8090 [49]

Total variable cost is -44000 ,0, 244000.

TR = P * Q

TC = FC + VC

Profit = TR - TC

Price Q                        TR                       FC              VC

10      6000 6000 * 10 = 60000 44000 =10 * 6000 = 60000    

16 8000 16 * 8000 = 128000 44000 =10.5 * 8000 = 84000

40 12000 40 * 12000 = 480000 44000 =16*12000 = 192000

Profit

-44000

0

244000.

The main goal of a perfect competitor to maximize profits is to calculate the optimum production level where marginal cost (MC) = market price (P). As shown in the graph above, the point of profit maximization is where the MC intersects the MR or P.

This is the output when the marginal revenue from the last sold unit is equal to the marginal cost to produce it.

In order to maximize profits, companies need to produce in a place where marginal revenue and marginal cost are equal. The company's marginal production cost is $ 20 per unit. If the company produces 4 units, its marginal revenue is $ 20. Therefore, the company needs to produce 4 production units.

Learn more about profit or loss here: brainly.com/question/13799721

#SPJ4

8 0
2 years ago
A voip caller wishing to contact another sends an invite message to ________.
kolbaska11 [484]
There are three choices the caller's H.323 proxy server, the receiver's H.323 proxy server and the receiver directly but none of these choices are correct. So the answer in this question will be none of the above. It is hard to know where you would send the invite message so the answer is NONE.
4 0
4 years ago
a seller transfers title to a buyer with a general warranty deed. in which clause of the deed does the seller define the quality
Elis [28]

A seller transfers title to a buyer with a general warranty deed. The seller defines the quality of ownership interest conveyed to the buyer in the habendum.

Habendum is an important concept in real estate and property transactions. It may also be used in other transactions related to leases and deeds, for example in the energy sector.

A habendum clause is part of a contract that is concerned with the rights, interests, and other features of ownership that is transferred to the other party. In cases of transfer of rights, for example in relation to a coal mine, it sets out the nature of the right and its duration.

To learn more about property transactions: brainly.com/question/28171058

#SPJ4

7 0
1 year ago
Other questions:
  • The people pane shows social media information available for any people who were included in the header of a message in the ____
    9·1 answer
  • Any marketing method that directly links manufacturers or intermediaries with the ultimate consumer could be classified as:
    12·1 answer
  • The theory that education increases productivity and results in higher wages
    8·1 answer
  • The Government and Public Administration Career Cluster includes careers involving which of the following? Travel and tourism Co
    9·1 answer
  • Bramble Corp. makes and sells widgets. The company is in the process of preparing its selling and administrative expense budget
    15·1 answer
  • Marketing can be seen through two different viewpoints: as a business philosophy and an applied set of techniques.
    7·1 answer
  • The___ shows your company's equity.
    13·2 answers
  • A company had the following items and amounts in its unadjusted trial balance as of December 31 of the current year: (3 points)
    6·1 answer
  • Without having a plan in place, managers may focus only on _____ instead of keeping a long-range view and anticipating new oppor
    7·1 answer
  • Oil companies can refine a barrel of petroleum so that it yields either more home heating oil or more gasoline. if the price of
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!