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PolarNik [594]
3 years ago
5

A company is currently selling 10,000 units of product monthly for $40 per unit. The unit contribution margin is $27. The compan

y believes that spending $50,000 per month on advertising will allow them to increase the selling price to $45 and that sales will increase by 750 units per month. Which of the following statements is true? The company should accept the idea because profit will increase by $74,000. The company should accept the idea because profit will increase by $3,750. The company should reject the idea because profit will decrease by $29,750. The company should accept the idea because profit will increase by $24,000.
Business
1 answer:
Ludmilka [50]3 years ago
3 0

Answer:

The company should accept the idea because profit will increase by $24,000.

Explanation:

A company is currently selling 10,000 units of product monthly for $40 per unit.

The unit contribution margin is $27.

The company believes that spending $50,000 per month on advertising will allow them to increase the selling price to $45 and that sales will increase by 750 units per month.

The unit contribution margin is the difference between selling price and variable cost per unit.

An increase in the selling price of $5 will cause the contribution margin to increase by $5, from $27 to $32.

Profits is the product of contribution margin and number of output.

At initial price, the profit was

= 10,000\ \times\ \$ 27

= $270,000

At the new price the profit will be

= 10,750\ \times\ \$ 32  - $50,000

= $344,000 - $50,000

= $294,000

The increase in profit

= $294,000 - $270,000

= $24,000

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Answer:

Common stock

Explanation:

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5 0
3 years ago
A bank service charge of $10 would be included on the bank reconciliation as a(n):_____.
iris [78.8K]

A bank service fee of $10 would be included on the bank reconciliation as on the last day of the bank statement

<h2>What exactly does a bank reconciliation include?</h2>

Starting with the bank's ending cash balance, adding any deposits that are currently being made up of the company to the bank, subtracting any checks that haven't yet been cleared by the bank, then either adding or subtracting any other items completes the basic process flow for a bank reconciliation.

<h3>A bank reconciliation is what?</h3>

At the conclusion of every month, a business should perform a bank reconciliation, which is that the process of confirming the correctness of both the bank statement and the cash accounts.

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7 0
1 year ago
Production estimates for July are as follows:
LenKa [72]

Answer:

d. 234,000 lbs. of A; e. 39,000 lbs. of B

Explanation:

For computing the number of pounds first we have to find out the production units which is shown below:

Production units = Sales units + ending inventory units - beginning inventory units

= 76,000 units + 10,500 units - 8,500 units

= 78,000 units

Now number of material pounds required is

Direct material            A          B  

One unit requires           3 lbs 1 ÷ 2 lbs

Multiply 78000 unit requires   234,000 39,000

We simply multiplied the production units with the required unit of each material i.e A and B so that the accurate number of pounds could arrive

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3 years ago
A difference between operations and projects is that operations end when their objectives have been reached, whereas projects do
maxonik [38]

Answer:

FALSE

Explanation:

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The reverse is true because projects are time-bound and they come to an end when their objectives have been achieved, but company operations are expected to continue as a going concern.

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3 years ago
Help help buddies pelsss I’ll give points I need straightforward answer ASAP
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Answer:

1

Explanation:

1 divided by 1 is 1

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2 years ago
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