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beks73 [17]
4 years ago
14

g Dybala Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales S

elling price $ 110 100 % Variable expenses 66 60 % Contribution margin 44 40 % The company is currently selling 5,120 units per month. Fixed expenses are $210,000 per month. The marketing manager believes that a $6,600 increase in the monthly advertising budget would result in a 230 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change
Business
1 answer:
d1i1m1o1n [39]4 years ago
3 0

Answer:

Effect on income= $3,520 increase

Explanation:

Giving the following information:

Contribution margin= 44

The marketing manager believes that a $6,600 increase in the monthly advertising budget would result in a 230 unit increase in monthly sales.

To calculate the effect on income, we need to use the following formula:

Effect on income= increase in contribution margin - increase in costs

Effect on income= 230*44 - 6,600

Effect on income= $3,520 increase

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Value-based marketing requires that firms charge a price that customers perceive as giving them a good value for the product the
PilotLPTM [1.2K]

Answer:

True

Explanation:

Value-based marketing is a shift from product centered to customer centered approach. Customer values and ethics are the primary drivers of this strategy.

When value- based pricing is done, the customer's perception of the value of goods and services is taken into consideration.

This is different from basing price on product cost or historical price.

3 0
3 years ago
Gordon Company reports the following information at the current fiscal year end of December 31: Common Stock, $0.10 par value pe
telo118 [61]

Answer:

$0.71

Explanation:

Calculation to determine What was the average selling price for the common stock issued

Using this formula

Common stock issued avarage selling price=

Paid-in Capital in Excess of Par-Common÷Common Stock par value per share

Let plug in the formula

Common stock issued avarage selling price=($600,000+$98,000)/($98,000÷$0.10)

Common stock issued avarage selling price=$698,000/$980,000

Common stock issued avarage selling price=$0.71

Therefore the average selling price for the common stock issued is $0.71

3 0
3 years ago
The Blue Corporation started and completed 4,800 units during February. Blue started the month with 700 units in process (40% co
mezya [45]
El gobierno de estados a estados de las dos o los otros países de la zona del sur del norte y el pueblo de la capital
5 0
3 years ago
Find the present value of the following stream of cash flows assuming that the firms opportuiny costs is 9 percent. 1-5 years 10
Yanka [14]

Answer:

   ∑( Cash flow × PVF) = 79,347

Explanation:

Given:

Opportunity cost = 9%

Cash flow for 1-5 years = 10,000

Cash flow for 6-10 years = 16,000

Now,

Present value factor (PVF) = \frac{\textup{1}}{\textup{(1 + 0.09)^n}}

here, n is the year

For year 1 to  5

Year             Cash flow             PVF             Cash flow × PVF

1                     10000             0.9174             9174

2                     10000             0.8417             8417

3                      10000             0.7722             7722

4                      10000             0.7084             7084

5                      10000             0.6499             6499

for years 6 to 10

Year             Cash flow             PVF             Cash flow × PVF

6                      16000              0.5963             9540.8

7                      16000              0.547             8752

8                      16000              0.5019             8030.4

9                      16000             0.4604             7366.4

10                      16000             0.4224             6758.4

========================================================

                                          ∑( Cash flow × PVF) = 79,347

========================================================

taking the PVF to 5 decimal places will make 79,347 ≈ 79,348

8 0
3 years ago
Decison support systems help managers use __ to identify problems a d find solitions to business related problems. the __ system
Ber [7]

Answer:

raw data; Financial planning

Explanation:

"Decision support systems"<em> (DSS)</em> is an information system or a computerized program that helps assist an individual or a business in terms of making decisions.  So, this means that it helps the decision-makers in addressing their problems through raw data or data that is available. These data can be<em> partially structured or not structured at all.</em>

One example of DSS is the "Financial Planning system." This kind of system allows the manager to thoroughly examine the different alternatives or choices before it comes up with a final decision.

So, this explains the answer.

7 0
4 years ago
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