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miv72 [106K]
3 years ago
15

Management is considering using a new component that would increase the unit variable cost by $50. Since the new component would

improve the company's product, the marketing manager predicts that monthly sales would increase by 500 units. What should be the overall effect on the company's monthly net operating income of this change if fixed expenses are unaffected
Business
1 answer:
katrin [286]3 years ago
7 0

Answer:

Because fixed costs will not change, the overall effect on the company's monthly net operating income will be equal to the contribution margin of the product once the new component is added.

Explanation:

The contribution margin is equal to: Revenue - Variable Costs.

We already know that the variable cost will be increased by $50 once new component is added, and that monthly sales are expected to increase by 500 units after that.

Depending on the price of the product, the amount sold, and the variable costs, we get the contribution margin, and this contribution margin will be exactly the same as the overall effect on the net operating income.

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If 99 million people are working and 1 million are unemployed but actively seeking work, then the unemployment rate is ________.
miss Akunina [59]
I believe it's 1% because the formula to find unemployment rate is number of unemployed, divided by labor force which is both employed and unemployed, so 1 million divided by 100 million = 0.01
3 0
4 years ago
Wellington Corp. has outstanding accounts receivable at year end totaling $6,500,000 and had sales on credit during the year of
LuckyWell [14K]

Answer: $520,000

Explanation:

A bad debt expense occurs when an economic entity which could be an individual or firm cannot collect a receivable because the said customer can't meet their obligations anymore.

The amount of bad debt expense recognized for the year will be the outstanding accounts receivable at year end multiplied by the percentage of uncollectible outstanding receivables. This will be:

= 8% × $6,500,000

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8 0
2 years ago
What are the necessary capital investments for starting a free-range poultry farm?
enot [183]

Answer:

chicks, chickens feed, roosting perches

Explanation:

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3 0
3 years ago
It is necessary to balance your checking account each month<br><br> true<br> false
yuradex [85]

Answer:

true so that you know what you have spent

8 0
3 years ago
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The historical cost principle requires that when assets are acquired, they be recorded ata. appraisal value.b. cost.c. market pr
Hitman42 [59]

Answer:

b. cost

Explanation:

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The historical cost principle requires that assets on initial recognition be recorded at cost. This cost is maintained even as depreciation is charged for the use of the asset.

The cost is then netted off the accumulated depreciation to get the net book value of the asset or the carrying amount.

6 0
3 years ago
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