1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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>

You might be interested in
Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the
Reika [66]

Answer:

Instructions are below.

Explanation:

<u>We were provided with the activity rates. To calculate the total cost, first, we need to allocate overhead to both product lines:</u>

<u></u>

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Product K425:

Allocated MOH= (6*80) + (4*100) + (50*1) + (90*1) + (14*1) + (9*80)

Allocated MOH= $1,754

Product M67:

Allocated MOH= (6*500) + (4*1,500) + (50*4) + (90*4) + (14*10) + (9*500)

Allocated MOH= $14,200

<u>Now, we can calculate the unitary cost:</u>

Product K425:

Unitary cost= 13 + 5.6 + (1,754/200)

Unitary cost= $27.37

Product M67:

Unitary cost= 56 + 3.5 + (14,200/2,000)

Unitary cost= $66.6

7 0
3 years ago
The government has set a price floor on bread. Manufacturers cannot sell loaves for less than $5.00, which is a dollar above the
insens350 [35]
The most likely result of this price control would be that the <span>demand for bread will fall, which could result in an excess supply. his excess supply in the market would ultimately force the hand of the manufacturers to stop the production of bread. I hope that this is the answer that has come to your help.</span>
3 0
3 years ago
Read 2 more answers
How much will you have if you wait 10 years before beginning to save and only make 35 payments into your retirement​ account?
Ivahew [28]
It all dependes on the money you make and how big the payments are. as you can say you waited tell the day you where going to retire but you but 10,000 dollars in your saving every hour by the end of the day youd have 240,000 dollars in your retirement account.
4 0
2 years ago
Suppose touchtech, a hand-held computing firm, is selling bonds to raise money for a new lab—a practice known as finance. buying
AysviL [449]
<span>Buying a bond does not constitute ownership in a company. In the event that Touchtech, or any firm that issues a bond, runs into financial difficulty, bondholders are the first to be paid. Sean, as a bondholder, would be among the first paid.</span>
8 0
2 years ago
Why does the risk of incorrect rejection result in an efficiency loss to the auditor?
Sever21 [200]
© 2017 Quizlet Inc.
8 0
3 years ago
Other questions:
  • The menu of substantive actions top managers can take to change a problem company culture does not include
    15·1 answer
  • Syngman Rhee was not successful doing which of the following? Rebuilding China after the wars Increasing production of China Dri
    12·2 answers
  • What is the name of the food production strategy, which is characterized by "slash and burn, swidden agricultural techniques use
    11·1 answer
  • "Under the California Insurance Code, there are no _______ for life or health insurance in California."
    15·1 answer
  • An organization most important resource is its _ resources
    9·1 answer
  • Mr. Torres has a small savings account. He would like to pay for his monthly Part D premiums with an automatic monthly withdrawa
    10·1 answer
  • Based on this income statement for Company ZYX for the year ending December 31, 2014, what adjustment would need to be made to N
    7·1 answer
  • Bronze Tint declares cash dividends of $ 28 comma 000 for 2018. How much of the dividends goes to preferred​ stockholders? How m
    11·1 answer
  • Choose, define, and restrict a topic based on a problem or issue you might deal with in one of the following divisions of a comp
    6·1 answer
  • Which of the following helps determine something's value?
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!