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yuradex [85]
3 years ago
14

Prepare a contribution format income statement segmented by divisions. 2-a. The Marketing Department has proposed increasing the

West Division's monthly advertising by $22,000 based on the belief that it would increase that division's sales by 13%. Assuming these estimates are accurate, how much would the company's net operating income increase (decrease) if the proposal is implemented
Business
1 answer:
meriva3 years ago
3 0

Answer:

hello your question is incomplete attached below is the complete question

1) attached below

2a)  $19340

2b) yes

Explanation:

1) Prepare The contribution format income statement

variable cost :

east = 446,000 * 50% = 223,000

west = 600,000 * 47% = 282,000

central = 660,000 * 39% = 257400

 attached below is the table ( screenshot from my excel )

2a) Determine how much the net operating income would increase

= ( Increase in contribution margin )- ( Increase in fixed cost )

 = $41340 - $22,000 = $19340

where :

 Increase in contribution margin = 318,000 * 13% = $41340

 Increase in fixed cost = $22,000

2b) I will recommend the increased advertising because the increase in net operating income

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Answer:

See below

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a commercial bank has $1,000,000 of customer checking deposits and actual reserves of $300,000. if the reserve ratio is 20 perce
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The maximum amount of new loans the bank can extend is $800,000.

<h3>What is the maximum amount of new loans the bank can extend?</h3>

The reserve ratio is the amount of deposits that must be kept as reserves with the central bank. The money that is not kept as reserves can be used to create loans.

Maximum loan amount = deposit - (reserve ratio x deposits)

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2 years ago
Suppose that two firms, A and B, are considering the same project. The project is in the same risk class as firm A's overall ope
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Answer:

Firm A should accept the project beacause it has high required rate of return which means low risk involved.

Explanation:

Rate of return = risk free return + Beta ( market risk premium)

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Answer:

3%

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