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ArbitrLikvidat [17]
3 years ago
15

Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Sell

ing price $ 150 100 % Variable expenses 75 50 % Contribution margin $ 75 50 % The company is currently selling 5,600 units per month. Fixed expenses are $194,000 per month. The marketing manager believes that a $5,300 increase in the monthly advertising budget would result in a 190 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?
Business
1 answer:
rusak2 [61]3 years ago
3 0

Answer:

<em>Net operating income  $8,950</em>

Explanation:

<em>The overall impact on the net operating income is the amount of increase in contribution from the addtional sales less the increase in monthly advertising budget. </em>

<em>                                                          $</em>

Contribution = ($75 × 190) =     14,250

Fixed cost - advertising       <u>    ( 5,300)   </u>    

Net operating income          <u>     8950</u>

Please, note that the fixed costs of $194,000 per month are not relevant for this decision. Simply because they would be incurred either way and that are not completely traceable to the increase sales.

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Explanation:

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2. Infrastructure: Creating an successful infrastructure make goods and services faster and thus increasing the economic growth.

3. Higher population: There are both advantages and disadvantages. We have high man power and on the other side there might be huge unemployment too.

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3 years ago
Kenny is concerned that the amount of spam he is receiving is making him less productive at work. He knows that the
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There should be no spaces.

Explanation:

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5 0
2 years ago
For the last two months thomas has been worried that something bad is going to happen. he can't pinpoint the source of this feel
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3 years ago
Cameron Tiller is paid one and one-half times the regular hourly rate for all hours worked in excess of 40 hours per week and do
kozerog [31]

Answer:

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Explanation:

Regular rate = $12 per hour

Rate for hours in excess of 40 hours per week

= (3/2) × $12

= $18

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= 2 × $12

= $24

During the week ended March 15, 9 hours each day from Monday through Friday, 6 hours on Saturday, and 4 hours on Sunday

Period in excess of 40 hours during the week

= (9 × 5) + 4 - 40

= 9

Total regular earning = 40 × $12

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Additional earnings = (9 × $18) + (4 × $24)

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4 0
3 years ago
A company developed the following per-unit standards for its product: 2 gallons of direct materials at $8 per gallon. Last month
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Answer:

$880 favorable

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The computation of direct materials price variance for last month is shown below:-

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= 2,200 × ($8 - 7.6)

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= $880 Favorable

Therefore for computing the direct materials price variance for last month we simply applied the above formula.

4 0
3 years ago
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