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Zinaida [17]
3 years ago
14

1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,400, the

monthly sales volume increases by 100 units, and the total monthly sales increase by $9,500? 1-b. Should the advertising budget be increased?
Business
1 answer:
elena-14-01-66 [18.8K]3 years ago
5 0

Answer:

a. Income before advertising budget increase:

= Contribution margin - Fixed costs

= (38 * 3,600) - 79,000

= $57,800

Income after advertising budget increases:

= Sales - Variable expenses - Fixed expenses

Sales = (3,600 + 100 units) * 95 per unit

= $351,500

Variable expenses = 60% * 351,500

= $210,900

Fixed expenses = 79,000 + 8,400 advertising

= $87,400

Income = 351,500 - 210,900 - 87,400

= $53,200

b. Income decreased with the increase in advertising so<u> Advertising budget should not be increased. </u>

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why is mutual fund investing a good idea for retirement, but not for your emergency fund or short-term savings?
Phoenix [80]

Investing your emergency fund into a mutual fund is not a good idea because mutual funds are unpredictable, and you can lose your emergency fund.

<h3>What are mutual-funds?</h3>

Mutual funds are the investment pool, where money is invested by many people ad than in profit, all people gain the profit and in loss people lose their money.

Investors buy shares in the mutual funds and combined called as portfolio.

Thus, Investing your emergency fund into a mutual fund is not a good idea because mutual funds are unpredictable, and you can lose your emergency fund.

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7 0
2 years ago
As an IAR, you have gotten to know one of your customers and have prepared a financial/investment plan for her retirement based
serg [7]

Answer:

D) Moving to a new home

Explanation:

When you move to a new home that usually should not change your investment plans, unless you are purchasing some extremely expensive home that will alter your finances completely.

If you move to another state, you will need to change your legal domicile which might require some changes, but it should not affect your financial position.

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3 0
3 years ago
Jamal is about to start a new job. Given that he wants to make lots of new friends, he should choose the office that is located
adell [148]

Answer:

he should join a job in the public expence or in a busy society

Explanation:

its like if he join a job in the public expence or in a busy society so he'll be able to make friends

4 0
2 years ago
Gilberto Company currently manufactures 84,000 units per year of one of its crucial parts. Variable costs are $2.90 per unit, fi
RoseWind [281]

Answer:

Cost to make $337,600

Cost to make $344,400

The company should make the product

Explanation:

Calculation to determine the total incremental cost of making 84,000 and buying 84,000 units

COST TO MAKE

Relevant per unit Relevant fixed cost Total relevant cost

Variable cost per unit $2.90 - $243,600(84000*$2.90)

Fixed manufacturing costs - $94,000 $94,000

Cost to make $337,600

($243,600+$94,000)

COST TO BUY

Relevant per unit Relevant fixed cost Total relevant cost

purchase per unit $4.10 - $344,400[$4.10*84000]

Cost to make $344,400

Based on the above calculation the cost of buying is higher than the cost of making therefore the company should MAKE the product.

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3 years ago
Form 8889, Part 1 is used to report HSA contributions made by _______________. A. Carol B. Carol’s employer C. Carol’s cousin D.
goldenfox [79]
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