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vodka [1.7K]
3 years ago
7

Carla Vista Company reports the following operating results for the month of August: sales $385,000 (units 5,500), variable cost

s $250,000, and fixed costs $94,000. Management is considering the following independent courses of action to increase net income. 1. Increase selling price by 10% with no change in total variable costs or units sold. 2. Reduce variable costs to 56% of sales. Compute the net income to be earned under each alternative. 1. Net Income $ 2. Net Income $ Which course of action will produce the higher net income
Business
1 answer:
Neko [114]3 years ago
3 0

Answer and Explanation:

The computation is shown below:

1.  

Selling Price = Sales ÷  Units Sold

Current Selling Price = $385,000 ÷  5500

= $70

Now

Expected Selling Price per unit = $70 + ($70× 10%)

= $77

Now

Expected Sales = 5500 × $77

= $423,500

Now

Net Income = Sales - Variable Cost - Fixed Cost

= $423,500 - $250,000 - $94,000  

2.  

Sales = $385000

Variable cost = $385,000 × 56% = $215,600

Sales                     $385,000

Less: variable cost -$215,600

Contribution Margin $169,400

Les: fixed cost          -$94,000

Net Income               $75,400

As we can see that if there is an increase in Selling Price by 10% so it would produce highest Net Income.

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3 years ago
___________are funds that the bank keeps on hand that are not loaned out or invested in bonds. group of answer choices
Nadusha1986 [10]

Certificates of deposit exist as funds that the bank keeps on hand that exists not loaned out or invested in bonds.

<h3>What are certificates of deposits?</h3>

Unsecured negotiable promissory notes, or certificates of deposit (CDs), are frequently issued by commercial banks and other financial organizations.

A certificate of deposit (CD) is a type of savings account where the issuing bank pays interest in exchange for holding a specified sum of money for a predetermined length of time, such as six months, a year, or five years. You will receive the amount you initially invested plus any interest when you cash in or redeem your CD.

Bonds and certificates of deposit (CDs) are comparable but not the same. Both of these securities are fixed-income investments that the holder keeps until the due dates. Investors invest money in bonds or CDs for a predetermined amount of time, and when that time expires, they receive their money back.

To learn more about certificate of deposit refer to:

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5 0
1 year ago
Managers are trying to decide on which variables to use in segmenting and selecting a target audience for marketing communicatio
katovenus [111]

Answer:

c. Senior citizens (65 years and older) - psychographic

Explanation:

This is the sentence that is not correct. Demographic information usually focuses on the external factors of a person. These include age, ethnicity, gender, or location. On the other hand, psychographic information tends to focus on more personal and unique characteristics, such as a person's motivations, beliefs or values. Both of these approaches are useful when approaching the process of segmenting.

3 0
3 years ago
A company had inventory of 5 units at a cost of $20 each on November 1. On November 2, they purchased 10 units at $22 each. On N
VashaNatasha [74]

Answer:

Cost of goods sold=  $410

Explanation:

Giving the following information:

November 1: 5 units for $20 each.

On November 2, they purchased 10 units at $22 each.

On November 6, they purchased 6 units at $25 each.

On November 8, they sold 18 units for $54 each.

The company uses LIFO (last in, first out) as an inventory method.

Cost of goods sold= 6units*25 + 10units* 22 + 2units* 20= $410

5 0
3 years ago
1) Monopolies and monopolistically competitive firms differ in that monopolies:
miv72 [106K]

Answer:

1. b) different their products,

2.a) face competition from many other firms ,

3. c) participate in markets where barriers to entry are present,

4. b) Within walking distance from your home, there are a plethora of fast-food restaurants including Koala Express, Cabo Bob's Burritos, Oodles of Noodles, and Hanzo's Hearty Hamburgers

Explanation:

  • The monopolies and the monopolistically competitive firms differ in terms of the monopolies as on the process of the differentiation.
  • The firm n the monopolistic competition differs from the perfect competition based on they are price takers and the monopoly is price makers.
  • An oligopoly market is a small number of relatively larger firms. where significant barriers to entry exist.
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6 0
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