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Leona [35]
3 years ago
10

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

the West Division's monthly advertising by $25,000 based on the belief that it would increase that division's sales by 16%. Assuming these estimates are accurate, how much would the company's net operating income increase (decrease) if the proposal is implemented
Business
1 answer:
AURORKA [14]3 years ago
8 0

Answer: Hello your question is incomplete below is the complete question

answer :

1) attached below

2a) Increases by $25,176

Explanation:

1) Attached below is the contribution format income statement

<u>2a) Determine by how much the net operating income will change </u>

monthly advertising increment = $25,000

Assumed increase in division's sales = 16%

first step : determine increment in contribution margin of west division

  = 313,600 * 0.16  = 50,176

change in net operating income = 50176 - monthly advert increment

                                                     = 50176 - 25,000 = $25,176 ( increases )

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Describe the slope of the demand curve? How does the slope reflect the law of demand?
AnnZ [28]

Answer:

<u></u>

  • <u>1. The slope is negative</u>
  • <u>2. The demand decreases when the prices increase.</u>

Explanation:

<em>Describe the slope of the demand curve?</em>

<em>The slope of the demand curve</em> is negative.

The demand curve is graphed on a coordinate plane with the price in the horizontal axis (typically the x-axis) and the demand on the vertical axis (y-axis).

Thus, the slope will be the rate of change of the demand over the change on the price.

Mathematically:

           slope=\dfrac{\text{change in demand}}{\text{change in price}}

Since, as you move from left to right, on the x-axis, the prices increase, and the demand (on the y-axis) lowers, the change in demand is negative and the change in the prices is positive, resulting in a negative slope.

This is seen graphycally because the demand curve is decreasing (downward-sloping).

<em>How does the slope reflect the law of demand?</em>

The slope reflects perfectly <em>the law of demand</em> because the law of demand states that, since the resources are scarce, when the prices incrases the quantities demanded decrease.

8 0
3 years ago
A judge requires Harry to make a payment to Sally. The judge says that Harry can pay her either $10,000 today or $12,000 two yea
Stells [14]

Answer:

d. 9 percent

Explanation:

After 2 years the value of $10,000 at present time =

$10,000 * (1 + x / 100)^2 = $12,000

(1 + x / 100)^2 = 12,00 / 10,000

(1 + x / 100)^2 = 1.2

The square root of 1.2 is 1.0954

(1 + x / 100) = 1.0954

x = 9.54

9%( Approximately.)

7 0
3 years ago
Suppose this monopolist can price discriminate across its customers and sets 2 prices in the market. Let P M represent the stand
Orlov [11]

Answer:

hello your question is incomplete attached below is the missing part

answer: Pd = 1658 , Qd = 42

Explanation:

The monopolist will choose a discount price of ( Pd ) = 1658 and sell 42 units of the good in the discount market

since the standard price is at $1800 and the Qm ( standard monopoly quantity) is at 200 for the Monopoly to be profitable the amount of good to be sold to customers with reservation prices greater than or equal to standard price should be greater than the good offered at discount price and also the discount price after using a coupon should be lower than the standard price (Pm)

5 0
3 years ago
The assets of a company total $738,000; the liabilities, $219,000. what are the net assets?
ziro4ka [17]
739,000 - 219,000 = 520,000

The net assets are assets minus liabilities, so it is $520,000 in this case.
4 0
3 years ago
Washington Inc. issued $705,000 of 6%, 20-year bonds at 98 on January 1, 2009. Through January 1, 2017, Washington amortized $8,
Mashcka [7]

Answer:D.$14,100 gain

Explanation:

The par value of a bond is $100 when it's issued below the price it's issued at a discount which is a loss to the firm and when it's issued above the par value, it's issued at a premium which is a gain.

The issue of $705,000 means 7050 numbers were issued and retiring it $102 means at a premium of $2 per bond and a total of N14,100 gain.

7 0
3 years ago
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