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yuradex [85]
2 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:
meriva2 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:

The journal entry which is to be reported on January 1 is shown below:

Explanation:

The journal entry which is to be reported on January 1 for the issuance is as:

On January 1

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Being the issuance as well as proceeds of the note is recorded

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2 years ago
Your annual salary is $100,000. You are offered two options for a severance package. Option 1 pays you 6 months' salary now. Opt
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Answer:

Option 1 is more convenient.

Explanation:

Giving the following information:

The annual salary is $100,000. You are offered two options for a severance package. Option 1 pays you 6 months' salary now. Option 2 pays you and your heirs $6,000 per year forever

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7 0
3 years ago
A textbook publisher produces a textbook for $25 per book and sells a lot of 160 to the Campus Bookstore for $50 per unit. The b
Dmitry_Shevchenko [17]

Answer:

$4,000

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8 0
2 years ago
2. Pure Water is considering buying new production equipment. The new equipment will increase fixed costs by $200,000 per year a
BARSIC [14]

Answer and Explanation:

The computation is shown below:

But before that we need to do the following calculations which are shown below:

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For pitcher filter, it is

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= 10,909.086 units

4 0
2 years ago
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