Travel different places and work.
Answer:
$2,280 increase
Explanation:
The computation of the change in net operating income is shown below:
= Increase in monthly sales unit × contribution margin per unit - increased monthly advertising
= 140 units × $52 - $5,000
= $7,280 - $5,000
= $2,280
Since this comes in a positive figure that results in increased in monthly net operating income we simply considered the change in monthly sales unit, monthly advertising, and the contribution margin per unit
Answer:
Sole proprietorship:
Advantage: is very easy to establish, and gives total control to the owner.
Disadvantage: the sole owner is personally liable in case of bankruptcy.
Partnership:
Advantage: involve two or more people, meaning that capital is likely to be higher. Gives tax benefits to partners.
Disadvantage: partners are also personally liable in case of bankruptcy.
Corporation:
Advantage: a corporation is legally, a separate entity from its stockholders, meaning that stockholders are not personally liable in case of bankruptcy. Corporations can also grow to include a large number of people (stockholders).
Disadvantage: they are more difficult to start than other types of business entities, and are more closely inspected.
Limited Liability Company:
Advantage: they combine the pass-through characteristics of partnerships with the limited liability of corporations.
Disadvantage: they are not necessarily as profitable as corporations.
Make sure you know you basic math operations. (+ , - , x , /) Know your Oder of operations (some call it as PEMDAS) Know how to work with negative numbers. Make sure to keep your work organized. Understand what variables are/stand for.
