1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Marysya12 [62]
3 years ago
15

Last month you assumed the position of manager for a large car dealership. The distinguishing feature of this dealership is its

"no hassle" pricing strategy; prices (usually well below the sticker price) are posted on the windows, and your sales staff has a reputation for not negotiating with customers. Last year, your company spent $2 million on advertisements to inform customers about its "no hassle" policy, and had overall sales revenue of $40 million. A recent study from an agency on Madison Avenue indicates that, for each 3 percent increase in TV advertising expenditures, a car dealer can expect to sell 12 percent more cars—but that it would take a 4 percent decrease in price to generate the same 12 percent increase in units sold. Assuming the information from Madison Avenue is correct, should you increase or decrease your firm’s level of advertising? Explain.

Business
1 answer:
ELEN [110]3 years ago
8 0

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

You might be interested in
An export subsidy is a. a fee that is charged to a country that ships goods to the U.S. b. a limit on the quantity of a good or
aleksandrvk [35]

Answer:

c. a payment to a firm or individual that ships a good abroad

Explanation:

Export subsidy is a payment to a firm or individual that ships a good abroad. The aim of export subsidy is to encourage export. Thus, it increases the amount of goods and services that can be sold abroad.

I hope my answer helps you

8 0
3 years ago
Read 2 more answers
What is a consumer in business
Nastasia [14]

Answer:

Consumers are defined as individuals or businesses that consume or use goods and services.

Explanation:

6 0
3 years ago
Read 2 more answers
Which of the following marketing variables is concerned with design, quality,
Daniel [21]

Answer:

A. Product APEX

Explanation:

This is the correct answer.

3 0
3 years ago
Nataro, Incorporated, has sales of $742,000, costs of $316,000, depreciation expense of $39,000, interest expense of $34,000, an
LenaWriter [7]

Based on the information given the net income is $278,870.

<h3>Net income </h3>

Sales $742,000

Less Costs ($316,000)

Les Depreciation ($39,000)

EBIT $387,000

Less Interest ($34,000)

Taxable Inc. $353,000

Taxes (21%) $74,130

($353000×21%)

Net Income $278,870

($353,000-$74,130)

Inconclusion the net income is $278,870.

Learn more about net income here:brainly.com/question/15530787

3 0
2 years ago
If the margin of safety is $200,000, fixed expenses are $50,000 and sales revenue is $500,000, what are variable costs?
Setler79 [48]

Answer: $250,000

Explanation:

4 0
2 years ago
Other questions:
  • Kimble Electronics issued its 6%, 20-year bonds payable at a price of $855,000 (face value is $900,000). The company uses the st
    5·1 answer
  • Tamarisk, Inc. purchased for $7.5860 million a mine that is estimated to have 37.93 million tons of ore and no salvage value. In
    8·1 answer
  • If the actual terms of trade are 1 belt for 1.5 swords and 70 belts are traded, how many belts will Morocco gain compared to the
    13·1 answer
  • Ivanhoe Company has a factory machine with a book value of $88,100 and a remaining useful life of 7 years. It can be sold for $3
    14·1 answer
  • Prime Inc. has come up with a new product development project for which the project manager forms a team. The team includes Cam,
    9·1 answer
  • Victoria is an actuary for an insurance company. She recently compiled this table to help her determine health insurance premium
    8·2 answers
  • Can somebody help me with this honestly im just to lazy (35 points)
    9·2 answers
  • On January 1, 2015, Johnson Company purchased a delivery truck for $72,000, paying $7,200 cash and financing the rest with a 4 y
    11·1 answer
  • Help please xx<br> Which economic indicator measures economic growth?
    7·1 answer
  • What is the term for the level of output at which the sales revenue of the firm just covers the fixed and variable costs includi
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!