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Makovka662 [10]
3 years ago
10

he company is currently selling 6,400 units per month. Fixed expenses are $424,400 per month. The marketing manager believes tha

t a $6,600 increase in the monthly advertising budget would result in a 140 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?
Business
1 answer:
kumpel [21]3 years ago
7 0

Answer:

The company's net operating income would increase by 2.1875%.

Explanation:

Let the selling price for each unit be $y

Initial quantity sold per month before increase in the advertising budget = 6400 units

Initial income = $6400y

New monthly sales after increase in advertising budget = 6400 + 1400 = 6540 units

New income = $6540y

Increase in income = $6540y - $6400y = $140y

Percentage increase in income = (increase in income ÷ initial income) × 100 = ($140y ÷ $6400) × 100 = 0.021875 × 100 = 2.1875%

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A bond issued by the state of Alabama is priced to yield 6.40%. If you are in the 30% tax bracket, this bond would provide you w
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Answer:

9.14%

Explanation:

Tax exempt yield = 6.40% = 0.064

Marginal tax rate = 30% = 0.30

Equivalent taxable yield = Tax exempt yield / (1 - marginal tax rate)  

Equivalent taxable yield = 0.064 / (1 - 0.30)

Equivalent taxable yield = 0.064 / 0.70

Equivalent taxable yield = 0.0914286

Equivalent taxable yield = 9.14%

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3 years ago
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Answer:

It can give money value today but it reallys depends because if you are trying to say money give us value to help us pay for medicare then yes. In order for us to afford medicare. You need the Goverments support especally if you an need for support or you have someone is need.

Explanation:

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3 years ago
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Explanation:

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3 years ago
A computer software company has been successful in marketing its employee productivity software for construction companies. whic
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Answer:

Construction companies ask if their team can provide managed IT services to handle the operation of the software and all of the company's other IT needs related to other software and hardware.

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Read 2 more answers
An increase in a levered firm’s tax rate will:
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Answer:

B, decrease the firm's cost of capital

Explanation:

When the tax rate of a levered firm is increased, there is a decrease in the firm's cost of capital because the value of a levered firm is the sum of the market value of the firm's debt and its equity.

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I hope this helps. Cheers.

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