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Rufina [12.5K]
3 years ago
8

Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Sell

ing price $ 150 100 % Variable expenses 60 40 % Contribution margin $ 90 60 % The company is currently selling 7,000 units per month. Fixed expenses are $214,000 per month. The marketing manager believes that a $7,500 increase in the monthly advertising budget would result in a 190 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change? rev: 03_09_2018_
Business
1 answer:
sladkih [1.3K]3 years ago
3 0

Answer:

Effect on income= $9,600 increase

Explanation:

Giving the following formula:

Unitary contribution margin= $90

The marketing manager believes that a $7,500 increase in the monthly advertising budget would result in a 190 unit increase in monthly sales.

<u>To calculate the effect on income, we need to use the following formula:</u>

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

Effect on income= 190*90 - 7,500

Effect on income= 17,100 - 7,500

Effect on income= $9,600 increase

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The short-run aggregate supply curve implies that real output exceeds its long-run level when the price level is:
Annette [7]

Answer:

greater than the expected price level

Explanation:

The short run aggregate supply curve shows graphically that the real output is more than its long run level when the price level is more than expected price level. When there is great expectation about inflation it shifts the short run Aggregate Supply curve outwards or to the right. Price level would then rise in the long run but real output would stay the same or unchanged.

4 0
3 years ago
Mannarelli Corporation uses the FIFO method in its process costing system. Operating data for the Casting Department for the mon
Serjik [45]

Answer:

$ 5.34

Explanation:

Calculation for cost per equivalent unit for conversion costs for September

First step is to find the Equivalent units of production

To complete beginning work-in-process:

Conversion 12,000

[15,000 units × (100%-20% )]

Units started and completed 65,000

(89,000-24,000)

Ending work-in-process

Conversion 21,600

(24,000 units × 90%)

Equivalent units of production 98,600

Second step is to calculate the Cost per equivalent unit using this formula

Cost per equivalent unit =Cost added during the period ÷Equivalent units of production

Let plug in the formula

Cost per equivalent unit = $526,524÷98,600

Cost per equivalent unit = $5.34

Therefore The cost per equivalent unit for conversion costs for September is closest to $ 5.34

7 0
3 years ago
Based on the following information, prepare the bank reconciliation for Cougar Corp. as of December 31. A. On December 31, Couga
True [87]

Answer and Explanation:

The Preparation of bank reconciliation for Cougar Corp. as of December 31 is shown below:-

                                         <u>Cougar Corp.</u>

                                    <u>Bank reconciliation</u>

                          <u>For the year ended December 31</u>

<u>Particulars                                                Amount</u>

Bank balance Dec 31                            $24,575

Add: Deposit in transit                            $2,500

Less:

Outstanding checks #302          ($180)

Outstanding checks #303          ($95)

Outstanding checks #304          ($25)     ($300)

Bank balance adjusted                             $26,775

Cash balance on 31 Dec                             $26,504

Add: EFT from customer             $1,700

Add: Interest income                   $21            $1,721

Less: Posting error

($5,400 - $4,500)                         $900

Less: NSF check                            $500     $1,400

Book balance adjusted                               $26,775

Hence, the bank balance and the book balance are matched

8 0
3 years ago
In a concentrated network configuration:
seraphim [82]

Answer:

B

Explanation:

Here, in this question, we are to select which of the options is best.

The correct answer to this question is that in a concentrated network configuration, firms allow each site on the network to operate with full autonomy.

What this means is that each site in the network operate independently of the other sites.

A site is thus an autonomous entity but still part of the concentrated network

7 0
3 years ago
~~~30 POINTS~~~
koban [17]
1. is credit card
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3. is card

hope this helped!!!
4 0
3 years ago
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