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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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Venture capitalists are investors that provide capital to small businesses, young companies, and start-ups in exchange for an equal value share in the asset and expect ownership.

Small businesses do not have adequate capital and turn to venture capitalists for financial backing to expand and upscale their projects. Venture capitalists do not invest in budding businesses but choose businesses that have strong management and clear concepts and are ready to market their products. Due to uncertainty in the investment outcome, venture capitalists tend to have a high failure rate, but the investments that do pan out tend to be high yield.

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1 year ago
Suppose the yield on short-term government securities (perceived to be risk-free) is about 4%. Suppose also that the expected re
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3 years ago
The law of demand states that, other things equal, when the price of a good.
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The law of demand states that when the price of a good increases, the quantity demanded decreases.

<h3>What is the law of demand?</h3>

The law of demand states that the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded. The quantity demanded of a good is inversely related to the price of the good. This explains why the demand curve is downward sloping.

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