Answer:
Effect on income= $9,600 increase
Explanation:
Giving the following formula:
Unitary contribution margin= $90
The marketing manager believes that a $7,500 increase in the monthly advertising budget would result in a 190 unit increase in monthly sales.
<u>To calculate the effect on income, we need to use the following formula:</u>
Effect on income= increase in total contribution margin - increase in fixed costs
Effect on income= 190*90 - 7,500
Effect on income= 17,100 - 7,500
Effect on income= $9,600 increase
Answer:
Option (D) is the right answer.
Explanation:
According to the scenario, the most appropriate answer is option ( D) because Stanley smith is a customer of the bank as he has a checking account in the bank.
While the other options are wrong because of the following reasons:
- Option (A) is incorrect because the company lucky licks Inc. is the customer of the bank, not any person.
- Option (B) is incorrect because Cara is not the customer of the bank as she only uses the bank's ATM.
- Option (C) is incorrect because Herman is not the customer of the bank as he only cashes his checks in the bank.
Answer:
d. where price is equal to average fixed cost.
Explanation:
Firms involved in a perfectly competitive market face the same cost, <em>they will theoretically make zero profit on the long run.</em> This happen at the point where price is equal to average fixed cost.
