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
VladimirAG [237]
3 years ago
9

Taylor Company has current sales of 1,000 units, which generates sales revenue of $190,000, variable costs of $76,000 and fixed

expenses of $96,000. The company believes sales will increase by 300 units, if advertising increases by $20,000. What is the change in net operating income after the changes?
Business
1 answer:
Leya [2.2K]3 years ago
7 0

Answer:

The change in net operating income after the changes by $14,200

Explanation:

For computing the change in net operating income, first, we have to compute the contribution per unit which is shown below:

Contribution per unit = Selling per unit - variable cost per unit

                                   = $190 per unit - $76 per unit

                                   =  $114 per unit

where,

The selling per unit = (Sales revenue ÷ number of units)

                                = ($190,000 ÷ 1,000 units)

                                = $190 per unit

The variable cost per unit = (variable cost ÷ number of units)

                                           = ($76,000 ÷ 1,000 units)

                                           = $76 per unit

Now the change in operating income equals to

= (increased sales units × contribution per unit) - advertising cost

= (300 units × $114 per unit) - $20,000

= $34,200 -$20,000

= $14,200 increase

You might be interested in
A travel agency will recommend a preferred supplier do a client because the supplier gives the agency which of the following.
NNADVOKAT [17]

The correct answer is extra commissions.

Travel agencies will often recommend a preferred supplier because they are receiving extra commissions from the suppliers. The extra commissions do not necessarily need to be in cash. Often the extra commissions will be in the form of things like trips, free hotel rooms and cruises for the travel agents.

8 0
3 years ago
Marcella operates a small, but very successful art gallery. All but one of the following can be classified as a variable cost ar
dexar [7]

Answer:

The right option is (A)

Explanation:

Marcella operates an art gallery which is small but successful. Similarly, the space used by Marcella for the art gallery is the variables cost which is necessary to operate her business. Without an art gallery, she can not run her business and that is why it is the variable cost which she has to bear in order to run her operations.

4 0
3 years ago
Type the correct answer in the box. Spell all words correctly.<br> What are net sales?<br> pls help
aleksley [76]
The proportion of revanues that remain deducting the allowance of damaged goods
8 0
3 years ago
________ are large-scale high-speed centralized computers, used for internal corporate data processing needs.
mart [117]

Answer:

The answer is mainframes.

Explanation:

Mainframes tend to be used by corporations for various purposes, from bulk data processing to transaction processing. Its size tends to be bigger than other computer devices, and it has strong processing power compared to these devices, with some examples being minicomputers, servers, and personal computers.

6 0
3 years ago
An operation features homemade chili on its menu. assuming the operation cooks, cools, and reheats the chili correctly, how many
krok68 [10]
Assuming that the operation starts with cooking the chili then cool and reheat the chili. And assuming that the chili is reheated correctly, it can be reheated as many times as you want. This is considering the assumption that the reheating process is done correctly. 

8 0
3 years ago
Other questions:
  • During 2010, raines umbrella corp. had sales of $850,000. cost of goods sold, administrative and selling expenses, and depreciat
    15·1 answer
  • Strong corporations were prevented in the early 1900s from becoming monopolies.
    14·1 answer
  • Suppose the government passes a law eliminating holidays and, as a result the production of goods and services increases because
    6·1 answer
  • On May 1, 2017, ABC Company signed a contract to provide 1 year of marketing research services to Anderson Company starting on M
    10·1 answer
  • The distribution of hourly sales for a local family owned store is normally distributed with a mean of $225 per hour and a stand
    14·1 answer
  • You need a loan of ​$140,000 to buy a home. Calculate your monthly payments and total closing costs for each choice below. Bri
    8·1 answer
  • Money is an unlimited resource.<br><br> TRUE<br><br> FALSE
    9·1 answer
  • Contribution Margin Variance, Contribution Margin Volume Variance, Market Share Variance, Market Size Variance Sulert, Inc., pro
    10·1 answer
  • A company is preparing financial statements using IFRS for the first time for the year ended December 31, 2018. The "transition
    10·1 answer
  • Le Son, Inc., has current liabilities of $11,700 an accounts receivable of $15,200. The firm has total assets of $43,400 and net
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!