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
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.

You might be interested in
On time airways will pay you $456 for working two weeks at $12 per hour. how many hours will you work per week?
qwelly [4]
You will work 38 hours per week. It is super simple, all you have to do is divide 456 by 12, and then that's your answer. Can I plz have brainliest and ty :)
8 0
2 years ago
Supler Corporation produces a part used in the manufacture of one of its products. The unit product cost is $21, computed as fol
Len [333]

Answer:

$4 advantage

Explanation:

In this question we need to compare the cost between the relevant cost and the outside supplier cost

The relevant cost is

= Direct material per unit + direct labor per unit + variable manufacturing overhead per unit + fixed manufacturing overhead per unit

= $8 + $5 + $3 + $5 × 80%

= $8 + $5 + $3 + $4

= $20

Since 80% of the fixed manufacturing cost above is eliminated so we considered the same

And, the outside supplier cost is $16

So based on the above calculation, the financial advantage is

= $20 - $16

= $4 advantage

This shows the company should purchased from outside supplier as it saves $4

3 0
2 years ago
A lawn maintenance company compares two ride -on mowersthe Excelsior, which has an expected working-life of six years, and the G
Fofino [41]

Answer:

A) The mower is only expected to be needed for three years.

Explanation:

Excelsior is surely more expensive than the Grassassinator, due to its longer working life. Therefore, it is essential to examine the period of use of the lawn mower. There is absolutely no need to invest in a long-running lawn mower if it is going to be needed twice less the time. In this case, it would be more financially efficient to invest in the Grassassinator.

6 0
3 years ago
A company has four vendors and the accounts payable subsidiary ledger shows the following balances.
Luba_88 [7]

Answer:

Explanation:shdfbddvddvddvdhdhdh

7 0
3 years ago
If a johnny rocket's burgers has 11,500 burgers in inventory on hand and they sell 1,000 units a day, how many days of inventory
riadik2000 [5.3K]
11.5 days, assuming none of the burgers expire before then.
8 0
3 years ago
Other questions:
  • The Two Dollar Store has a cost of equity of 11.9 percent, the YTM on the company's bonds is 6.2 percent, and the tax rate is 40
    5·1 answer
  • Division X makes a part with the following characteristics:
    15·1 answer
  • "during its first year of business, xyz inc. purchased $1,600 of supplies. by the end of the year, only $500 of supplies remain
    11·1 answer
  • Shirley received $500 monthly sick pay under a welfare fund and $6,500 monthly under a disability insurance policy offered by he
    6·1 answer
  • Say a pill existed that made people selfless. After taking it they were only interested in others, not themselves. Under the coo
    15·1 answer
  • A registered rep is in the process of being hired with a new firm. The registered rep isn't sure whether it is required that he
    5·1 answer
  • Asset management ratios are used to measure how effectively a firm manages its assets, by relating the amount a firm has investe
    14·1 answer
  • Laura Cervantes is a currency speculator and she sells eight June futures contracts for 500,000 pesos at the futures price of 0.
    7·1 answer
  • Assume the following data: total current assets = $852; total current liabilities = $406; long-term debt = $442. calculate net w
    8·1 answer
  • Determine the interval(s) on which the function is increasing and decreasing. (enter your answers using interval notation. if an
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!