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Papessa [141]
3 years ago
5

The sea wharf restaurant would like to determine the best way to allocate a monthly advertising budget of $1000 between newspape

r advertising and radio advertising. management decided that at least 25 percent of the budget must be spent on each type of media and that the amount of money spent on local newspaper advertising must be
Business
1 answer:
Andreas93 [3]3 years ago
5 0
From what I understood in the problem, the total budget that covers all types of media is only $1,000 per month. For the allocation, each type of media would get at least 25% of the budget. If we infer on this information, there should only be 4 types of media, at least. This is because four 25% portions would equal to 100%. If it exceeds 25% for each of the four types, it would be over the $1000 budget. With that being said, it is also possible that there will be 3 or 2 types of media. Nevertheless, let's just stick to the least assumption of 25% for each of the 4 types.

If local newspaper advertising is one of the four types, then:

$1000(25%) = $250

It would get $250 from the overall budget.
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Answer:

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The effect of recognition of $400 of estimated manufacturing overheads would be reduction in net income since their recognition raises the cost of production which reduces gross profit. Consequently this would reduce the net income.

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anygoal [31]

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