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4 years ago

Definition of efficiency in public policy

1 answer:

5 0

Efficiency of public policies can be defined as the extent to which they are keeping costs down, especially monetary costs, as indicated by either total costs or a ratio that involves both benefits and costs.

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Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $80 per unit. Variable expenses are $40.00 per

Blizzard [7]

Answer:

a. Degree of operating leverage is 1.23; and Percentage increase in net income is 23.37%.

b. Therefore, this year's net operating income would be $636,000 if the sales manager's ideas are implemented.

Explanation:

a. Assume the president expects this year's sales to increase by 19%. Using the degree of operating leverage from last year, what percentage increase in net operating income will the company realize this year?

The degree of operating leverage (DOL) refers to a metric used to gauge the amount by which the operating income of a firm will change as a result of a change in its sales. DOL can be calculated as follows:

Degree of operating leverage = contribution margin / net income = 960,000 / 780,000 = 1.23

From the DOL, the percentage increase in net income can can be determined as follows:

Percentage increase in net income = Degree of operating leverage * Expected percentage increase in net income = 1.23 * 19% = 23.37%

b. If the sales manager is right, what would be this year's net operating income if his ideas are implemented?

Note: This required part b is not complete. The complete requirement is therefore presented as follows:

The sales manager is convinced that a 13% reduction in the selling price, combined with a $72,000 increase in advertising, would increase this year's unit sales by 25%. If the sales manager is right, what would be this year's net operating income if his ideas are implemented?

The answer to par b is now provided as follows:

Initial sales in unit = Initial sales / Initial selling price = $1,920,000 / $80 = 24,000 units

This year's sales in unit = Initial sales in unit * (100% + percentage increase in sales) = 24,000 * 125% = 30,000 units

This year's sales = This year's sales in unit * [Old selling price * (100% - expected percentage fall in selling price)] = 30,000 * [$80 * (100% - 13%)] = $2,088,000

This year's operating income can now be determined as follows:

Feather Friends, Inc.

Income Statement (Variable Costing)

For this year

Particulars Amount ($)

Sales 2,088,000

Variable expense (30,000 * $40) (1,200,000)

Contribution margin 888,000

Fixed expense (180,000 + 72,000) (252,000)

Net operating income  636,000 

Therefore, this year's net operating income would be $636,000 if the sales manager's ideas are implemented.

5 0

3 years ago

In the United States, if someone is unable to file by the tax deadline, that person can file an extension but any taxes due must

mrs_skeptik [129]

From the given statement above, the correct answer would be TRUE. If someone is unable to file by the tax deadline, that person can file an extension, but any taxes due must still be paid by the deadline to avoid penalties. This is true in the United States.

3 0

3 years ago

Read 2 more answers

Jason McCurdy has a regular hourly rate of $10.75. During a two week period, he worked 80 hours (40 hours each week) and had ded

Lorico [155]

Jason McCurdy's gross pay was $684.21.

Given that the regular hourly rate is $10.75. During a two-week period, he worked 80 hours (40 hours each week) and had deductions of $110 for federal income tax, $53.32 for social security tax, and $12.47 for Medicare tax.

Total working hours = 80 hours

Hourly rate = $10.75

Total payment = $10.75 × 80

= $860

Deductions = Federal Income Tax + Social Security tax + Medicare Tax

= $110 + $53.32 + 12.47

= $175.79

Gross Pay = Total Payment - Deductions

= $860 - $175.79

= $684.21

To know more about the income tax system refer to:

brainly.com/question/13745838

#SPJ4

7 0

2 years ago

In a business franchise, who develops the product and business systems?

vladimir2022 [97]

Answer:

It depends on the type of business franchise.

In a business format franchise, the franchise will provide the franchisee all of the necessary things for a product + business system like marketing assistance, machines, supplies, etc... An example of this would be a fast food restaurant or a retail store.

In a product distribution franchise, the work is all up to the franchisee. The franchise will provide the logo and the right to sell its product but leaves the rest of the work to the franchisee. An example of this would be a car dealership or a gas station.

6 0

3 years ago

Chris paid $100,000 for a single-family home on July 1, 2019, and immediately placed it in service as residential rental propert

alekssr [168]

Answer:

Total Rental real estate and royalty income $4,000

Explanation:

The computation of the total rental real estate and the royalty income is as follows;

For rental income and royalty

Cost of single family home $100,000

Less: Valuation of the land -$10,000

Value allocated to property 90,000

Multiplied by Depreciation rate 1.667%

Depreciation Expense for 2019 $1,500

Rental Income 6,000

Less: Depreciation expense for 2019 -$1,500

Less: Real Estates taxes -$500

Total Rental real estate and royalty income $4,000

6 0

3 years ago