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Advocard [28]
4 years ago
7

Data for Hermann Corporation are shown below:Per unit Percent of SalesSelling price $90 100%Variable expenses 63 70%Contribution

margin $27 30%Fixed expenses are $30,000 per month and the company is selling 2,000 units per month.Requirement 1:(a) Calculate the increase or decrease in net operating income if a $5,000 increase in the monthly advertising budget would increase monthly sales by $9,000.(b) Should the advertising budget be increased as suggested in requirement 1(a) above?Requirement 2:Refer to the original data. Management is considering using higher-quality components that would increase the variable cost by $2 per unit. The marketing manager believes the higher-quality product would increase sales by 10% per month. Should the higher-quality components be used?
Business
1 answer:
Tems11 [23]4 years ago
3 0

Answer:

Answers are given below.

Explanation:

1-a : current net operating income: = (Sales  x cm) - Fixed Expenses

= (2000 x 27 )-30000 =24000

New Sales:

(90x 2000)+ 9000=189000

Contribution Margin: =18700

189000 * 30% = 56700

New net operating income: 56700-(30000+5000)

= 21700

Decrease in net operating income= 2300

1-b = No.

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A company has budgeted direct materials purchases of $210000 in July and $390000 in August. Past experience indicates that the c
Alja [10]

Answer:

$486,000

Explanation:

According to the scenario, computation of the given data are as follow:-

                          Budgeted Cash Disbursements for August

Particular                                                           Amount ($)

Direct material purchase for July ($210,000 × 30%) 63,000

Direct material purchase for August ($390,000 × 70%) 273,000

Add-wages paid 50,000

Add: Office equipment purchase 62,000

Add: Selling and administrative expenses 38,000

Total                                                           486,000

The depreciation is a non cash expense and the same is not relevant. Hence, ignored it

7 0
4 years ago
The combination of advertising, personal selling, public relations, and sales promotion activities traditionally used by an orga
Aleonysh [2.5K]

Answer:

promotion mix

Explanation:

Promotion mix -

In the marketing area , it refers to the method for marketing a particular goods and services with promotional variables , is referred to as promotion mix .

It is referred to as the subset of the marketing mix .

It helps to promote the product in the best manner , in order to achieve the best marketing result.

Hence, from the given information of the question,

The correct term is promotion mix .

3 0
3 years ago
The ___________ is a flexible market that allows you to work short-term
dem82 [27]

Answer:

The <u>gig economy</u> is a flexible market that allows you to work short-term.

Explanation:

The gig economy is a market in which temporary jobs are offered for a specific period of time. This refers to working as a freelancer taking specific activities without a job contract or working exclusively for that organization. According to this, the answer is that the gig economy is a flexible market that allows you to work short-term.

7 0
4 years ago
Mary never liked math and did poorly. when she decided to think ofit as a fun challenge, her performance improved. this is an ex
d1i1m1o1n [39]
This is an example of a change in perception.
Once she changed the way she looks at the problem, the problem instantly changed, or rather, disappeared, in Mary's case. She doesn't view math as a terrible chore anymore, but rather as a fun challenge, which means that her perception of math changed.
7 0
3 years ago
The Laramie factory runs two departments: the Preparation Department and the Processing Department. The departmental overhead co
Westkost [7]

Answer:

The answer are:

  • $62.50 per direct labor hour - for preparation department
  • $33.33 per direct labor hour - for processing department

Explanation:

To calculate the departmental overhead cost per direct labor hour we must divide the total overhead cost over the total amount of direct labor hours.

Preparation department: $25,000 / 400 DLH = $62.50 per DLH

Processing department: $20,000 / 600 DLH = $33.33 per DLH

6 0
3 years ago
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