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zhuklara [117]
3 years ago
6

The president believes that a $6,200 increase in the monthly advertising budget, combined with an intensified effort by the sale

s staff, will result in an $84,000 increase in monthly sales. If the president is right, what will be the increase (decrease) in the company’s monthly net operating income?
Business
1 answer:
nirvana33 [79]3 years ago
3 0

<u>Solution and Explanation:</u>

calculating the increase in the net operating income is as follows:

S.no                    Particulars and explanation                    Amount

1.                    Sales ( $268000 + 84000 )                         352000

2. Contribution ( 1 multiply with 40 percent)                      140000

3. Fied expense ( $119200 plus $6200 )                         125400

4. Net operating income ( 2 step minus 3 step)                $14600

therefore, net operating income increased by $ 14600 plus $12000

Note: the sales were not given, so i have taken or assumed. Please change the figure if there is different figure of sales in the question given.

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Answer: 10.13%

Explanation:

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= After-tax return + Premium required

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= After tax return / ( 1 - tax)

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2 years ago
Should Tangshan Mining company accept a new project if its maximum payback is 3.5 years and its initial after tax cost is​ $5,00
Firlakuza [10]

Answer:

Yes, Tangshan Mining company should accept the project.

Explanation:

Payback period is the number of years it takes for a project's expected cash inflows to recover the initial investment amount.

Tangshan company's required payback period = 3.5 years

<u>Year             CF                       Net CF</u>

0             -5,000,000        -5,000,000

1               1,800,000          -3,200,000

2              1,900,000          -1,300,000

3                700,000           -600,000

4               1,800,000            1,200,000

<em>Payback period = last year with -net CF +(absolute net CF that year /total CF the following year)</em>

Payback period = 3 + (600,000 / 1,800,000)

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5 0
3 years ago
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In order to operate effectively, every organization must have an organizational architecture that enables the correct flow of processes that will assist in achieving the objectives and goals.

To assess which type of organizational architecture is appropriate for a business, it is necessary to analyze the company's systems, culture and strategy.

3 0
3 years ago
National sales meetings, training meetings, product introductions, and dealer/customer meetings are all examples of what type of
lutik1710 [3]
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