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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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Amazon has decided to enter the college bookstore market. The goal of "Amazon Campus" is to offer co-branded university-specific
Leviafan [203]

Answer: product diversification

Explanation:

Product diversification is when the original market for a product is being expanded. Product diversification is used to boost a brand and also increase sales.

From the question, we are informed that Amazon has decided to enter the college bookstore market and that the goal of "Amazon Campus" is to offer co-branded university-specific web sites that offer textbooks and paraphernalia, such as logo sweaters and baseball hats. This development shows Amazon's relentless pursuit of product diversification.

7 0
3 years ago
Why have many nations chosen to use taxpayer dollars to subsidize primary, secondary, and higher education
Alona [7]

Answer and Explanation:

This is because education has a positive rate of return. Investment in Education is an investment in new knowledge which is beneficial to any country. These countries have subsidized these forms of education because they recognize that an investment in education is an investment in human capital. Which would likely increase future productivity and ability to earn money.

Education is very beneficial to the individual who gets it, but a country where it's citizens have a good level of education benefits everyone positively.

1. Better health outcomes due to breakthroughs in research.

2. Reduction in Crime rates

3. Better environment

4. Also a better government

Are reasons for using taxpayers dollars to subsidize all these levels of education.

3 0
3 years ago
Merchant Company had the following foreign currency transactions: On November 1, 20X6, Merchant sold goods to a company located
vazorg [7]

Answer

The answer and procedures of the exercise are attached in the images below.

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a 2 sheets with the formulas indications.  

6 0
3 years ago
Veronica Gilbert is an accountant for a surf shop that is expanding their retail store locations. Her supervisor has assigned he
harina [27]

Answer:

The answer is: Must do priority

Explanation:

Must do priorities are the activities you or your organization must achieve in order to be successful. Must do priorities should be your highest priorities.

Veronica needs to get the bank loan so that her company can start their expansion projects, and she needs to do it fast.

3 0
2 years ago
a mature manufacturing firm. The company just paid a dividend of $8.65, but management expects to reduce the payout by 5 percent
-BARSIC- [3]

Answer:

$48.34%

Explanation:

Data provided in the question

Growth rate = 5%

Required return = 12%

Dividend = $8.65

Based on the above information,

The computation of the current price is shown below:-

Current Price = Dividend × (1 + Growth Rate) ÷ (Required Return - Growth Rate)

= $8.65 × (1 + (-5%)) ÷ (12% - (-5%))

= $48.34%

Therefore for computing the current price we simply applied the above formula.

4 0
3 years ago
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