1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Allushta [10]
2 years ago
13

A company is currently selling 10,000 units of product monthly for $40 per unit. The unit contribution margin is $27. The compan

y believes that spending $50,000 per month on advertising will allow them to increase the selling price to $45 and that sales will increase by 750 units per month. The company should ______.
Business
1 answer:
CaHeK987 [17]2 years ago
8 0

Answer:

The company should accept the idea reason been that the profit will increase by $24,000

Explanation:

Calculation to determine What should the company do

First step

Increased CM = [10,750 x (27+(40-45))]- (10,000 x 27)

Increased CM = [10,750 x(27+5)]- (10,000 x 27)

Increased CM = (10,750 x 32) - (10,000 x 27)

Increased CM = $344,000-$270,000

Increased CM = $74,000

Now let calculate the profit

Profit =$74,000-$50,000

Profit=$24,000 Increase

Therefore based on the above calculation The company should accept the idea reason been that the profit will increase by the amount of $24,000

You might be interested in
A factory has added a new incentive program to encourage employees to use payroll deductions to contribute to their 401K retirem
ddd [48]

Answer:

Explanation:

Mean is given as $ 100.602

every observation in the dataset is multiplied by 1.578

= 100.602 × 1.578

= 158.75

4 0
2 years ago
Compared to a short-term investment, what is the general return of a long-term investment? A) A long-term investment has a simil
slavikrds [6]

Let understand that "short-term investment" are investments that can be easily converted to cash and has a maturity period of less than a year. Example of this investment are Money Market.

"Long term investment" are investment that runs over a long period of time and yield higher return than the short-term investment". Example of these investment are stocks, bonds, real estate

  • People invest in "Long term investment" because its offers more risk for higher rewards.

In conclusion, long-term investment has a greater return because it has greater risk.

Learn more about this here

<em>brainly.com/question/17681451</em>

8 0
3 years ago
Vanvalkenburg, Inc., manufactures and sells two products: Product Q5 and Product J0. The company has an activity-based costing s
Nata [24]

Answer:

c.  $88.17 per order

Explanation:

The computation of the activity rate for the production order is shown below:

Activity rate = Production orders ÷ order size

where,

The Production order is $70,536

And, the order size is 800

Now placing these values to the above formula

So, the activity rate is

= $70,536 ÷ 800 order size

= $88.17 per order

We simply applied the above formula so that the activity rate could come

4 0
3 years ago
Suppose economic conditions call for a tax increase but Congress does not implement this measure because an election is approach
Daniel [21]

Answer:

Implementation lag

Explanation:

there are four types of lags associated with fiscal policy

Administrative lag is the time it takes to enact the needed policies. Operational lag is the time it takes for the policy to be enacted to the time the effects are felt in the economy

Recognition lag is the amount of time it takes for authorities to recognise a problem in the economy that needs fiscal policy intervention.

Implementation lag is the amount of time it takes for fiscal policy decisions to be implemented.

3 0
3 years ago
Samtech Manufacturing purchased land and building for $4 million. In addition to the purchase price, Samtech made the following
kumpel [21]

Answer: LAND                                 3.227,680

              BUILDING                              806,920

              LAND IMPROVEM                 134,000

Explanation:

Land 4 0.8 $       3.227,680  

Building 1  0.2 $          806,920  

               5  $       4.034,600

Land Improvement    

Parking Lot $         88,000    

Lanscaping $         46,000    

Total  $        134,000

Computation Of Cost Of Land And Building  

Purchase Price  $       4.000,000  

Add:      

Title Insurance Cost  $             22,000  

Legal Fees                  $                8,000  

State Transfer Fees  $                4,600  

Demolition of old building $            310,000  

Land Clearing Expenses $             85,000  

Less: Salvage Material  $              -9,000  

Total Cost Of Land  $      4.420,600    

6 0
2 years ago
Other questions:
  • Bianca's discount home furnishings store is in a strip mall. She wants to know what other businesses in the strip mall her custo
    6·2 answers
  • Below are the 2014 and 2015 year-end balance sheets for Tran Enterprises:
    9·1 answer
  • What is the present value on January 1, 2019, of $30,000 due on January 1, 2023, and discounted at 10% compounded annually? $ 95
    9·1 answer
  • On February IN , Marshak's investment account has a balance Of $19,800. He deposited ,200 on April I and $2,600 on May l . He wi
    10·1 answer
  • Skidmore Music Company had the following transactions in March: Sold instruments to customers for $16,300; received $11,200 in c
    9·1 answer
  • A company leases trucks and properly classifies the leases as finance leases. The leases have a 10-year term, and the lease calc
    6·1 answer
  • If the labor force averaged 237 million in 2008–2011, by how much in percentage terms did the state and local layoffs described
    6·1 answer
  • In markets where the government imposes an excise tax on unit sales, it also has a tendency to dabble with restrictions on adver
    5·1 answer
  • Among the major channels of management communications, _____ is the predominant method of communicating
    8·1 answer
  • When might a generic message be appropriate to use? Question 20 options: (ANSWER ASAP PLS)
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!