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Alexxx [7]
3 years ago
7

Thornbrough Corporation produces and sells a single product with the following characteristics: Per Unit Percent of Sales Sellin

g price $ 220 100 % Variable expenses 44 20 % Contribution margin $ 176 80 % The company is currently selling 7,000 units per month. Fixed expenses are $901,000 per month. Management is considering using a new component that would increase the unit variable cost by $11. Since the new component would increase the features of the company's product, the marketing manager predicts that monthly sales would increase by 500 units. What should be the overall effect on the company's monthly net operating income of this change
Business
1 answer:
DaniilM [7]3 years ago
6 0

Answer:

-$5,500

Explanation:

The computation of the overall effect on the company net operating income is as follows:

New Variable cost per unit is

= $44 + $11

= $55

Now the new contribution margin per unit is

= $220 - $55

= $165

New unit Monthly sales is

= 7,000 units + 500 units

= 7,500

Now

New total contribution margin :

= 7,500 units × $165

= $1,237,500

And, the Current total contribution margin is

= 7,000 units × $176

= $1,232,000

So, the change would be

= $1,232,000 - $1,237,500

= -$5,500

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Waupaca Company establishes a $400 petty cash fund on September 9. On September 30, the fund shows $122 in cash along with recei
Lemur [1.5K]

Answer and Explanation:

The Journal entry is shown below:-

September 9

Petty cash fund Dr, $400

     To Cash $400

(Being establishment of petty cash fund is recorded)

Here we debited the petty cash fund as assets is increasing while we credited the cash is decreasing.

September 30

Merchandise Inventory Dr, $51

Postage expense Dr, $73

Cash Short and over Dr, $13

Miscellaneous Dr, $141

      To Petty Cash $278

(Being reimburse of petty cash find is recorded)

Here we debited the merchandise Inventory, postage expense, cash short and over and miscellaneous as it is expenses while we credited the petty cash as is reimbursed.

October 1

Petty cash fund Dr, $60

($460 - $400)

     To Cash $60

(Being increase in petty cash fund is recorded)

Here we debited the petty cash fund as assets is increasing while we credited the cash is decreasing.

6 0
4 years ago
Which of the following is the best example of direct-response print advertising?a. An advertorial A mailing from a travel agency
Svetach [21]

Answer:

c. A magazine ad that asks you to call a toll-free number for more information

Explanation:

The direct response print advertising is the advertising in which the customer get the immediate response from the advertiser about the advertisement in which the customer has an interest

Since in the given situation, the third options reflects the direct response print advertising in which the customer called the toll free information and immediately he or she get the response from the advertiser

3 0
3 years ago
Baldwin's Traditional product Basket finished 2019 with an awareness of 72%. One-third of Basket's existing awareness is lost ev
Katyanochek1 [597]

Answer:

they should spend $2 in promotions

Explanation:

Baldwin's Traditional product Basket will lose 1/3 of its 2019 awareness (72%), which will result in only a 48% during 2020. If the product manager wishes to end 2020 with a 92% awareness, they must spend in promotion enough money to raise awareness by 44%.

  • The first $1 million spent in promotions will increase awareness by 26%, to a total of 74% (= 48% + 26%).
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3 years ago
If you were a manager who made sure that rewards were distributed to your employees fairly based on their performance and that e
Naily [24]

Full question:

If you were a manager who made sure that rewards were distributed to your employees fairly based on their performance and that each employee clearly understood the basis for his or her own pay, you would be using: Group of answer choices

a.equity theory.

b.Theory X.

c.motivation-hygiene theory.

d. Theory Y.

e. scientific management.

<u>Option A:</u>

If you were a manager who made sure that rewards were distributed to your employees fairly based on their performance and that each employee clearly understood the basis for his or her own pay, you would be using: equity theory.

<u>Explanation:</u>

Equity theory intends to hit an equivalence within an employee’s input and output in the workplace. If the worker can observe his or her reasonable balance it would drive to a more rich association with the administration.

Equity theory affirms that if a self recognizes an inequity among themselves and a companion, they will adjust the work they do to address the circumstances fairly in their sights.  So obtaining this fair balance assists to guarantee a stable and fruitful relationship is reached with the employee, with the overall outcome being contented, excited employees.

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3 years ago
When a company buys out all of its competitors to be a monopoly, that company is practicing ______________________________ integ
steposvetlana [31]
Horizontal integration
8 0
3 years ago
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