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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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The initial equilibrium price in the market for Web pages is $200 per page and 1 created in a month. Many new Web design firms n
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Answer:

B) the supply of Web pages increases and the price falls.

Explanation:

The equillibrum price is where demand intersects supply, that is the price at which consumer is willing to buy is the same as the price seller is willing to sell.

If there was only 1 web page created per month at $200, and now more web design firms enter the market. The supply of web pages will increase from 1, as all the companies will want to present their product.

This results in excess supply and will cause price to fall as is illustrated in the attached diagram. As seen the equillibrum price reduces from P1 to P2.

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4 years ago
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Why aren‘t magazine photos a good representation ofwhat a healthy person looks like?
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Magazine photos are not a good representation of what a healthy person looks like because they often show pictures of people who has a skinny and or people who only has built or toned body without having to discuss other factors that should be considered such as mentally or psychologically. They are mostly focused on the physical appearance.
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4 years ago
The ____ agenda contains the Welcome and introductions to provide opportunity for team members to get to know each other and the
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Answer:

The <em>Meeting Agenda</em>

5 0
3 years ago
Tryon Corp. and Sandoval, Inc. were joint owners of the former Sandy Glass manufacturing facility. An environmental assessment f
kotegsom [21]

Answer:

One company pays 100%, the other re-reimburses 50%  

Explanation:

If an environmental assessment found that the two companies share joint and several liability for a hazardous materials cleanup.

What could happen if the two of them don't agree to cooperate in the cleanup is that one of the companies will eventually settle the costs fully while the other party will have to reimburse the party that pays, 50%.

The paying company could make claims because the environmental impact assessment has already found both companies jointly liable. hence each company ought to jointly share the costs

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3 years ago
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The cavo company has an roa of 9.8 percent, a profit margin of 12.25 percent, and an roe of 18.25 percent. What is the company's
victus00 [196]

(a)As per Du-Pont equation:

Return on Assets (ROA) = Net profit margin * Total assets turnover

9.8% = 12.25% * total asset turnover

Total asset turnover = 0.098/0.1225  =0.8

Total asset turnover = 0.80

(b) As per Du-Pont equation:

ROE = Net profit margin * total asset turnover 8 * Equity Multiplier

18.25% = 12.25%*0.8* Equity Multiplier

Equity multiplier = 0.1825/(0.1225*0.8) = 1.86

Equity multiplier = 1.86 times

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3 years ago
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