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Olin [163]
3 years ago
15

Consider the following scenario:

Business
1 answer:
nalin [4]3 years ago
6 0

Answer:

Explanation:

See attached file .

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Marian Corporation has two separate divisions that operate as profit centers.Black Division Navy DivisionSales (net) $700,000 $3
Lyrx [107]

Answer:

The correct option is c. $482,000; $87,000

Explanation:

For computing the departmental income, the following formula is shown below:

= Sales - cost of good sold - salary expense - rent expense

For Black division,

The department income would be

=  Sales - cost of good sold - salary expense - rent expense

where,

rent expense = black division × (total rent expense ÷ sum of total square feet)

where,

sum of total square feet = black division square feet + navy division square feet

= 28,000 + 42,000

= 70,000 square feet

So, the rent expense for black division would be equal to

= 28,000 × (70,000 ÷ 70,000)

= 28,000

So, the departmental income for black division equal to

= $700,000 - 170,000 - 20,000 - 28,000

= $482,000

For Navy division,

The department income would be

=  Sales - cost of good sold - salary expense - rent expense

where,

rent expense = navy division × (total rent expense ÷ sum of total square feet)

where,

sum of total square feet = navy division square feet + navy division square feet

= 28,000 + 42,000

= 70,000 square feet

So, the rent expense for black division would be equal to

= 42,000 × (70,000 ÷ 70,000)

= 42,000

So, the departmental income for black division equal to

= $320,000 - 151,000 - 40,000 - 42,000

= $87,000

Hence, the departmental income for the Black and Navy Divisions is $482,000 and $87,000 respectively.

Therefore, the correct option is c. $482,000; $87,000

4 0
3 years ago
Describe a real or made up example of word of mouth promotion. Why do you think people were motivated to spread this message to
finlep [7]
If people like the message they want everyone to know. an example is referring someone to paint a friends house when they complain about not finding anyone.
3 0
3 years ago
Read 2 more answers
Half of the income for magazine publishers comes from
mixer [17]

Answer:

B. advertising.

Explanation:

A magazine can be defined as a written document published periodically to provide informations about a particular subject or field. An example is the Marketing News magazine.

Marketing News is a magazine from the American Marketing Association and it covers all aspects of the marketing industry, which is mainly read by academics and people working directly in marketing.

Magazine publishers are mainly dependent on adverts posted on their pages to generate revenues for the smooth running of their business.

Hence, half of the income for magazine publishers comes from advertising.

Basically, organizations and business firms submit their products or services to a magazine company for the purpose of promoting their business through advertising.

4 0
3 years ago
Read 2 more answers
Suppose that you are opening a new music store in your town. How would the government affect your business?
raketka [301]

The government sets a minimum wage for employees, and will collect various taxes from the business (sales tax, unemployment insurance tax, etc).

4 0
3 years ago
A third-degree price discriminating monopolist can sell its output either in the local market or on an internet auction site (or
Natasha2012 [34]

Answer:

the firm should have sold less output in the local market, and more output on the internet auction site.

Explanation:

Based on the scenario being described within the question it can be said that in order to maximize profits the firm should have sold less output in the local market, and more output on the internet auction site. This is because marginal revenue indicates the additional revenue that will be generated by increasing product sales by one unit. Therefore since the internet auction site's marginal revenue is higher than the local store, it means that selling more units in the internet site will lead to more profit than the local market.

7 0
3 years ago
Read 2 more answers
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