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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:

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Suppose that a lumberyard has a supply of 10-ft boards, which are cut into 3-ft, 4-ft, and 5-ft boards according to customer dem
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Answer :

Some answers are attached below

Explanation:

a) Based on the information provided, below are the all possible sensible patterns the lumberyard may use to cut the 10-ft boards -

Pattern Number 3-ft boards 4-ft boards 5-ft boards Waste (<3-ft)

1                      3                   0                     0                       1                                                                        

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3                             1                    0                           1                       2            

4                                 0                     1                          1                        1

5                           0                      2                           0                       2                  

6                      0                     0                            2                     0      

b) ILP Formulation

Objective Function

Minimize Number of 10 ft-boards to be cut

Z = x1+x2+x3+x4+x5+x6 where xi is the number of boards for pattern i

subject to constraints -

3x1+2x2+x3>=90 ----> 3-ft boards

x2+x4+2x5>=60 ----->4-ft boards

x3+x4+2x6>=60 ----->5-ft boards

Xi>=0 ---->Non-negativity constraint

Below is the excel solver formulation and solution -

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The minimum number of 10 ft-boards to be cut = 90

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