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valkas [14]
2 years ago
12

How can gross interest income rise while the net interest margin remains somewhat stable for a particular bank?

Business
1 answer:
Alecsey [184]2 years ago
4 0

Answer:

A bank acts like an intermediary between depositors and creditors. If the market interest rates increase, gross interest income will rise, but all gross interest expense. They will charge higher rates to borrowers, but also must pay higher rates to depositors. The spread probably remains unchanged because both sides increased.

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In pursing its own interest, an oligopoly firm will decide to increase production by 1 unit as long as
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3 years ago
The marketing manager believes that increasing advertising costs by $74,000 in 2020 will increase the company’s sales volume to
serious [3.7K]

Answer:

Instructions are below.

Explanation:

Giving the following information:

The marketing manager believes that increasing advertising costs by $74,000 in 2020 will increase the company’s sales volume to 12,700 units.

<u>We weren't provided with enough information to solve the requirement. But, I will provide the general structure:</u>

<u></u>

Sales= (number of units*selling price per unit)=

Total variable cost= (total variable cost per unit*number of units)=

Contribution margin=

Fixed costs= (fixed costs + incremental fixed costs)=

Net operating income

<u>If we want to determine the effect on income without an income statement:</u>

Effect of income= incremental units*contribution margin - incremental fixed costs

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