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tresset_1 [31]
2 years ago
6

Data concerning Pony Corporation's single product appear below: Per Unit Percent of Sales Selling price $ 200 100 % Variable exp

enses 40 20 % Contribution margin $ 160 80 % Fixed expenses are $531,000 per month. The company is currently selling 4,000 units per month. The marketing manager would like to cut the selling price by $14 and increase the advertising budget by $35,000 per month. The marketing manager predicts that these two changes would increase monthly sales by 500 units. What should be the overall effect on the company's monthly net operating income of this change
Business
1 answer:
Luda [366]2 years ago
8 0

Answer:

$18,000

Explanation:

The computation of overall effect on the company's monthly net operating income is shown below:-

                                 Current                 Proposed

Sales                       $800,000               $837,000

                        (200 × 4000)     (200 - 14) × (4,000 + 500)

Variable expenses  $160,000             $180,000

                              (40 × 4000)  (40 × (4,000 + 500))

Contribution margin $640,000            $657,000

Fixed expenses     $531000                 $566,000

                                                  ($531,000 + $35,000)

Net operating

income                  $109,000                $91,000

Decrease in net operating income = Current - Proposed

= $109,000 - $91,000

= $18,000

So, for computing the overall effect on the company's monthly net operating income we simply applied the above formula.

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A market has many small firms and one dominant firm. Market demand is givby 100-4P. The dominant firm has a constant marginal co
horsena [70]

Answer: Marginal cost under demand and supply theory.  Answer is 80

Explanation: QD 100-4P, Marginal Cost =S4,QS =6P -20. So

the calculation goes thus  = QS=6p-20

Inputing Marginal value of 4 equates 100-4(4)

100-16 = 84

QS=6(4)-4

24-20=4

profit maximisation =QD-QS

84-4=80

4 0
2 years ago
A firm purchased goods on January 27 with a purchase price of $1,000 and credit terms of 2/10 net 30 EOM. The firm paid for thes
alexira [117]

Answer:

$1,000

Explanation:

the journal entry to record the purchase of the goods should be:

January 27, merchandise purchased on account, credit terms 2/10, n/30

Dr Merchandise inventory 1,000

    Cr Accounts payable 1,000

the journal entry to record the payment of the invoice 13 days later should be:

Dr Accounts payable 1,000

    Cr Cash 1,000

since the discount period is over, the invoice should be paid at full amount

5 0
2 years ago
1. List some of the tools that organizations can use to make the most of its
pentagon [3]

Some of the tools that organizations can use to make the most of its diverse workforce are, assessing the organization's progress toward goals, attracting the employees, retaining employees, etc.

An organization's plan in order to become multicultural and making the most of its diverse workforce should includes the given components, such as: securing top management's leadership and commitment, progress toward goals, attracting employees, and training employees in diversity,

Diversity is the range of human differences. However, having a range of people with various racial, ethnic, cultural, and socioeconomic  backgrounds with various lifestyles, interests, and experience.

There are certain different types of organizations that result from prevailing assumptions about people and cultures. A monolithic organization tend to have a very little cultural integration, here its employee population is highly homogeneous.

Hence, in multicultural organizations, diversity not only exists but is also valued.

To learn more about diverse workforce here:

brainly.com/question/3804682

#SPJ1

7 0
1 year ago
If the exchange rate between the dollar and the Swiss franc changes from 1.8 to 1.5 francs per dollar, the franc depreciates and
bazaltina [42]

Answer:

False

Explanation:

Exchange rate helps to determine the value of money in the foreign currency. If the exchange rate changes from 1.8 to 1.5 francs per dollar it means that the franc per dollar appreciates, and the dollar depreciates. Now, more dollars can be bought by trading Swiss franc compared to the previous rate. A decrease in exchange rate decreases the value of the dollar compared to the Swiss franc.

6 0
3 years ago
Would you say that systems that have higher efficiency ratios than other systems will always have higher utilization ratios than
SashulF [63]

Complete Question:

Determine the utilization and the efficiency for each of these situations:

a. A loan processing operation that processes an average of 7 loans per day. The operation has a design capacity of 10 loans per

day and an effective capacity of 8 loans per day.

b. A furnace repair team that services an average of four furnaces a day if the design capacity is six furnaces a day and the

effective capacity is five furnaces a day.

c. Would you say that systems that have higher efficiency ratios than other systems will always have higher utilization ratios than

those other systems? Explain.

Explanation:

It's not (true) actually. Whether the design capacity is comparatively (high), the utilisation could be (low) even though the efficiency was (high).

Utilisation = Output / Design capacity = \frac{17}{10} x 100%

Efficiency = Output / Effective capacity = \frac{7}{8}

Utilisation = \frac{4}{6}

Efficiency  = \frac{4}{5}

U = 1000/2000

e = 1000/1000

4 0
3 years ago
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