Dybala Corporation's produces and sells a single product. Data concerning that product appear below The company is currently sel
ling 6,700 units per month. Fixed expenses are $547,700 per month. The marketing manager believes that a $7,100 increase in the monthly advertising budget would result in a 170 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change
1 answer:
Answer: Increase of $8,200
Explanation:
Currently, the company is making a net operating income of;
= Contribution Margin - Fixed expenses
= (90 * 6,700) - 547,700
= $55,300
If the company advertises, net operating income becomes;
= Contribution margin with increase in sales - Fixed expenses including advertisements
= (90 * (6,700 + 170)) - (547,700 + 7,100)
= $63,500
Increase in operating income = 63,500 - 55,300
= $8,200
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Answer:
The average velocity of the car was zero because the displacement was zero.
Explanation:
Average velocity is the rate of change of displacement with time. Mathematically, it is calculated as follows;
where;
x₁ is the initial position or starting point of the car
x₂ is the final position or finishing point of the car
t₁ is the initial time = 0
t₂ is the final time = 2 hours
The average velocity can be zero if the initial position of the car is equal to its final position. In this condition, the displacement of the car is zero.
Therefore, the average velocity was zero because the displacement was zero.