Turtle Corporation produces and sells a single product. Data concerning that product appear below:
1 answer:
Answer:
The monthly Net Operating Income would reduce by $100 if additional funds are allocated to Marketing Expenses.
Explanation:
I have attached a screen shot of my workings, give it a look and you will have a better idea of what is going on.
Key Points:
- New units to be sold are 7,210.
- Variable Expense is calculate as (Sales * Percentage of Variable Expense).
- A new Fixed cost of 6,700 for Marketing will be deducted.
I hope I made it very much clear for you. Feel free to ask if you have any confusion.
Thanks!
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Answer:
The rest of the question and the answer are attached.
To get the percentages, the following formula was used;
= (Account/ Sales) * 100
For instance, for the Fixed Assets it was;
= (37,200/48,200) * 100
= 77.18%
