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
Margarita [4]
3 years ago
5

In 2020, the Merkel Company had revenues of $2,600,000 and costs of $2,100,000. During 2021, Merkel will be introducing a new pr

oduct line that is expected to increase sales revenue by $260,000 and costs by $172,000. Assuming no changes are expected for the other products, the operating profits are expected to increase by: Multiple Choice a. $588,000. b. $260,000. c. $172,000. d. $88,000.
Business
1 answer:
Artemon [7]3 years ago
4 0

Answer:

d. $88,000

Explanation:

In 2020, Merkel company's

Revenue = $2,600,000

Cost = $2,100,000

Operating profits = Revenue -  Cost

= $2,600,000 - $2,100,000

= $500,000

In 2021, the company's;

Revenue increases by $260,000

New revenue = $260,000 + $2,600,000 = $2,860,000

New Cost = $2,100,000 + $172,000 = $2,272,000

New Operating profits = $2,860,000 - $2,272,000

= $588,000

Expected increase in Operating profits = $588,000 - $500,000

= $88,000

The expected increase in operating profit amounts to $88,000.

You might be interested in
Suppose the Fed decides to increase the money supply. It purchases a government bond worth $2,000 from Antonia, a private citize
Ivanshal [37]

Answer:

(a) Trace the effect of this change through three banks- First National, Second Federal, and Third State.

Antonia deposits $2,000 in First National Bank.

Then First national Bank lends $1,600 to client X that uses the money to purchase something. The seller of that something deposits the money In Second Federal Bank.

Second Federal Bank then lends $1,280 to client Y that decides to use that money to pay his rent. Client Y's landlord then deposits the money in Third State Bank.

Third State Bank will then lend $1,024 to client Z...

(b) How much money will be generated in this banking system?

total money generated in the banking system = Antonia's deposit x money multiplier

money multiplier = 1 / required reserve rate = 1 / 0.2 = 5

so the total money generated = $2,000 x 5 = $10,000

6 0
3 years ago
Assume that a $1,000,000 par value, semiannual coupon US Treasury note with four years to maturity has a coupon rate of 4%. The
ExtremeBDS [4]

Answer:

Explanation:

the present value of the future cash flows is the the value of the bond we calculate the present value as follows

Cash flow  4% = 40000 per year for 4 year p.v using annuity

Cash flow = 1000000 at year four present value using compound formula

Present value at yield rate 7.7%

Cash flow Discount Factor Present Value

1000000 0.743253883           743253.8831

40000         3.334365155           133374.6062

                                            876628.4893

Compound = 1000000/(1+7.7%)^4

Annuity       = 40000*  (1-(1+7.7%)^-4) / 7.7%

6 0
3 years ago
Suppose Pump-U-Up lowers the price of its gym membership by 10 percent and as a result, Sweat-It-Out experienced a 16 percent de
konstantin123 [22]

Answer:

The Cross elasticity of demand will be the change in demand at Sweat-it-out divided by the change in price at Pump-U-Up

=-0.16/-0.1

= 1.6

Explanation:

The Price decrease from Pump-U-up = 10%

And the resultant decline in Gym membership at sweat-it-out is 16%

The Cross elasticity of demand will be the change in demand at Sweat-it-out divided by the change in price at Pump-U-Up

=-0.16/-0.1

= 1.6

A Positive Cross - Price elasticity indicates both Gyms are close substitutes of one another.

An attempt by one to lower its price will directly impact negatively in membership of the other.

The strategy often adopted in such line of Business is to keep prices at Par or offer distinctive services outside of the traditional, e.g include a Spar into the gym membership, or access to discounted toning or body building products etc.

5 0
3 years ago
Jack and Mary, a married couple, report taxable income of $280,000, which includes $200,000 from Jack's solely owned S corporati
Strike441 [17]

Answer:

$32,140

Explanation:

The QBI  on $280,000(57.3% of Taxable income)                  $160,700

Eligible Deduction of 20% on QBI                                            $32,140

4 0
3 years ago
1. Which design style resembles a half-moon?
masya89 [10]
The correct answer for the question that is being presented above is this one: 
(1) <span>B. Crescent
</span>(2) C. Clustering
(3) C. are difficult to carry.
(4) B. terracing
(5) <span>B. Ikebana
</span>(6) <span>A. allow designers the opportunity to work with better flowers.
</span>(7) <span>D. Sequencing
</span>(8) <span>B. grouping.
</span>(9) <span>D. terracing.
</span>(10) <span>C. rocky creek bed.</span>
7 0
3 years ago
Read 2 more answers
Other questions:
  • If a firm's business activities do not result in profit maximization, whilst alternatives exist, then such activities amount to
    14·1 answer
  • Juliette formed a new business to sell sporting goods this year. The business opened its doors to customers on June 1. Determine
    9·1 answer
  • To keep high inflation from eroding the value of money, monetary authorities in the United States: A. create token money that is
    7·1 answer
  • Spears Co. had net sales of $35,400 million. Its average total assets for the period were $14,700 million. Spears' total asset t
    6·2 answers
  • Village Corp., a calendar year corporation, began business in year 1. Village made a valid S corporation election on December 5,
    8·1 answer
  • Weekly activity reports by an agent to a client should include:_______.
    15·1 answer
  • The following list of statements about corporations are given below.
    8·1 answer
  • What are some facts about fishing? ​
    15·2 answers
  • URL in brainly......how its changed
    5·1 answer
  • On May 3, what is the balance of the Equipment Office account? A. Debit $5,090 C. Debut $4,400 B. Debit $690 D. Credit $5.090​
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!