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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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On January 2, 2018, Howdy Doody Corporation purchased 15% of Ranger Corporation's common stock for $58,000. Ranger's net income
insens350 [35]

Answer:

Howdy Doody show in the 2018 income statement as income from this investment is $24225

Explanation:

given data

purchased = 15%

common stock = $58,000

net income 2018 = $15,000

net income 2019 = $58,000

dividend  = $61,500

fair value = $73,000

to find out

How much Howdy Doody show in the 2018 income statement as income from this investment

solution

we know that net income to be reported as income by investment is the sum of income from dividend + unrealised gain

so here

unrealised gain = increase in value of stock that is

= $73,000 - $58,000 = $15000      .............1

and

income from dividend is  = 15 % of $61,500

income from dividend = $9225       .................2

now add equation 1 and 2

Howdy doody show in 2018 income statement as income from this investment = Dividend revenue + Unrealized holding gain

income statement = $9225 + $15000

income statement = $24225

4 0
3 years ago
In this statement, which type of spending is President
sineoko [7]

<u>Answer: </u>Option 2 discretionary

<u>Explanation:</u>

Spending can be mandatory spending or discretionary spending. Mandatory spending means the spending on essentials goods such as food. Discretionary spending means the spending on recreation and entertainment where people have additional money in hand after meeting their necessary expenses.

In this speech Obama speaks about the non essential expenses when they are controlled more investments can be made. He says when all the departments cut down their discretionary expenses then can result in economic growth.

7 0
3 years ago
Read 2 more answers
The goal in networking with other owner is to
Korvikt [17]
Is there multiple choice answers
5 0
3 years ago
Sam, Joe, Lynn, and Kori are four business colleagues traveling together on a business trip. There are four adjacent seats avail
Pepsi [2]

Answer:

  • A. Sam, Joe, Lynn, Kori
  • B. Kori, Lynn, Sam, Joe

Explanation:

The constraints we have are two in number.

1. Sam and Kori cannot sit next to each other

2. Lynn and Kori need to sit next to each other.

Both options A and B satisfy both these constraints because Sam and Kori are seated apart and Lynn and Kori are seated together.

Option C satisfies only one constraint which is that Kori is sitting next to Lynn. She is sitting next to Sam however so this option is wrong and by extension, so is option D as well.

4 0
3 years ago
This year, Mesa Inc.’s before-tax income was $11,252,000. It paid $529,000 income tax to Minnesota and $451,000 income tax to Il
Sever21 [200]

Answer:

Before-tax income                                                                   $ 11,252,000

Less: Deduction for state income tax(529000+451000)   $      980,000

Taxable Income                                                                   $   10,272,500

Tax rate                                                                                                        21%

Federal income tax                                                           $   2,157,225.00

Mesa’s combined tax rate

= ([$980,000 state tax + $2,157,225 federal tax] ÷ $11252000) 27.88%

Explanation:

6 0
3 years ago
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