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Zinaida [17]
2 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]2 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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Answer:

The answer is: You need to identify your market.- Who are your potential customers and what unsatisfied need do they have in common?

Explanation:

A marketing concept can be defined as:                                                          The idea/concept/philosophy that your business is going to follow in order to satisfy their customers' needs while reaching their business's goals.

The first thing you need to do is identify your target market, i.e. Who are your potential customers and what unsatisfied need do they have in common?

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3 years ago
A certain production possibilities frontier shows production possibilities for two goods, jewelry and clothing. Which of the fol
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Answer:

A certain production possibilities frontier shows production possibilities for two goods, jewelry and clothing. The following concepts can not be illustrated by this concept:

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Explanation:

  • A Production Possibilities Frontier also known as the Production Possibility Curve or Transformation Curve. This curve illustrates a country or a business is utilizing its resources effectively by showing the point at which that country or business is producing its products efficiently.
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7 0
3 years ago
Read 2 more answers
The following statement(s) regarding Utility Functions is/are true: Utility Functions are usually a function of wages. Utility i
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Answer:

Utility increases at a decreasing rate.

Explanation:

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The utility function measures the total satisfaction derived from consumptjon.

Utility increases at a decreasing rate.

This can be illustrated with an example.

Imagine I am coming from a desert with no access to drinking water. I am very thirsty. The satisfaction I would derive from the first cup of water would be the highest. After my first cup, the utility I would derive from other cups would be diminishing.

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2 years ago
Miami Solar manufactures solar panels for industrial use. The company budgets production of 4,800 units (solar panels) in July a
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Answer and Explanation:

The preparation of the factory overhead budget for August month is shown below:

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(5,500 × 4 hours × $13)  

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Add: Fixed overhead $179,000

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3 years ago
Sarbanes-Oxley does not require:
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Answer:

B) companies to turn over responsibility for establishing and maintaining internal controls for financial reporting to auditors.

Explanation:

Sarbanes- Oxley is popularly called SOX and  which is also know as the ''Public Accounting Reform and Investor Protection Act'' in the United States' Senate and ''Corporate and Auditing Accountability, Responsibility and Transparency Act'' is a USA federal law the sets out new regulations for all U.S public company boards, management and public accounting firms. Some part of the Act makes provisions that apply to privately owned companies.

The Sarbanes-Oxley is named after the bill sponsors that is Senator Sarbanes and a U.S Representative known as Micheal G. Oxley and this bill makes sure that the top management of a company must each individually determine and certify the accuracy of all financial information provided or stated. This bill was enacted in 2002 to curb a number of major corporate accounting scandals, especially those affecting big accounting firms like ;  Enron, Tyco International, Adelphia, Peregrine Systems, and WorldCom that cost investors to loose a lot of money when the their shares collapsed.

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