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Hitman42 [59]
3 years ago
7

Prince Paper has budgeted the following amounts for its next fiscal​ year: Total fixed expenses $ 900 comma 000 Selling price pe

r unit $ 85 Variable expenses per unit $ 35 If Price Paper spends an additional $ 12 comma 100 on​ advertising, sales volume should increase by 3 comma 000 units. What effect will this have on operating​ income?
Business
1 answer:
stepan [7]3 years ago
8 0

Answer:

The effect on net operating income would be an increase of $137,900

Explanation:

Giving the following information:

Selling price $85

Variable expenses per unit $ 35

If Price Paper spends an additional $12,100 on​ advertising, sales volume should increase by 3,000 units.

To calculate the effect on income, we need to determine the incremental total contribution, and deduct the incremental fixed costs:

Effect on income= 3,000*(85 - 35) - 12,100= $137,900

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Answer:

The answer is: There was no consumer surplus in this situation.

Explanation:

consumer surplus refers to the difference between the maximum amount a consumer is willing to pay for a good or service and the actual price of the good or service.

In this case there was no consumer surplus, since Stacey was willing to pay only $2 for a bottle of mineral water and its price was $2.25, so she didn't buy it.

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3 years ago
A company purchases merchandise with a catalog price of $30,000. The company receives a 40% trade discount from the seller. The
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Answer:

$17,820

Explanation:

Data provided in the question:

Catalog price of the merchandise = $30,000

Trade discount received = 40%

The amount of discount received = 40% of $30,000

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Therefore,

Cost of Merchandise = Catalog price - Discount

= $30,000 - $12,000

= $18,000

also,

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since, the payment was made within the discount period

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= $180

hence,

Net cost of the merchandise

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= $18,000 - $180

= $17,820

3 0
3 years ago
An increase in the quantity supplied can result from
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The only factor that can cause a change in quantity supplied is price, so increase in Qs results from a change in supply price.
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3 years ago
Effective reading involves what four steps? Select one: a. Preparing, reading, capturing key ideas, and reviewing. b. Preparing,
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Answer:

Preparing, reading, capturing key ideas, and reviewing.

Explanation:

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3 years ago
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