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prisoha [69]
3 years ago
9

How much will a company's net operating income change if it undertakes an advertising campaign given the following data: Cost of

advertising campaign $ 25,000 Variable expense as a percentage of sales 42 % Increase in sales $ 60,000 A) $200 increase B) $25,200 increase C) $15,000 increase D) $9,800 increase
Business
1 answer:
Olegator [25]3 years ago
5 0

Answer:

Increase in net operating is $9,800

Explanation:

<u>Computation table</u>

Increase in sales                         $60,000

<u>Less:Variable expense (42%)    $25,200</u>

<u>Increase in contribution             $34,800</u>

<u>Less:Cost of advertising            $ 25,000 </u>

<u>Increase in net operating          $9,800</u>

<u />

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Joe was tired of working for other people. He had an idea to start his own ice cream business and wanted to set it up where he a
d1i1m1o1n [39]

Answer:

Authority - Responsibility Balance & Incentive Development.

Explanation:

Authority refers to the power to command, give orders to somebody. And enjoying the position of having right to get it obeyed.

Responsibility refers to being in a position of accountability, answerability for an allocated task or job & its performance.

For Eg : A manager  given responsibility to complete a task of production targets achievement, is also given authority to command the entire staff at the production site.

Joe had problem while working for someone else that :- he had responsibility to complete employers allocated task, but may be not given enough authority to do so, thats why he felt he is being 'commanded by, working for' someone else. Also, he doesn't owe the rewards of his acts, so lacks incentive.

Being an entrepreneur will entitle him with managerial responsibilities, but at the same time will also give him higher authority to take his own independent decisions. And, he is himself responsible for his acts, will bear losses or enjoy profits for himself. So, it also incentivises him to work for himself.

8 0
3 years ago
Journalize the following transactions into the general journal in accordance with the rules of Journalizing, and the Double-entr
Ludmilka [50]

Answer:

May 24

Dr Retained earnings $1,500

Cr Cash $1,500

Being cash dividend paid to shareholders.

October 11

Dr Advertising Expense $1,000

Cr Cash $1,000

Being cash payment for monthly advertising expenses.

Explanation:

Rules:

Debit side:

Increase in asset

Increase in expense

Decrease in liability

Decrease in equity

Decrease in income or sales

Credit side:

Decrease in asset

Decrease in expense

Increase in liability

Increase in equity

Increase in income or sales

May 24

Dr Retained earnings $1,500

Cr Cash $1,500

Being cash dividend paid to shareholders.

October 11

Dr Advertising Expense $1,000

Cr Cash $1,000

Being cash payment for monthly advertising expenses.

8 0
3 years ago
____ materials are materials that are no longer serviceable, have been discarded, or are a by-product of the production process.
alexgriva [62]

Answer:

Scrap

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The scrap material is that material that is not usable for the or the services are no longer available and these products are not used so far for the production process. It is totally and completely discarded and used as a by product production process

Hence, the correct option is scrap

And all other options are wrong and incorrect

4 0
3 years ago
Hutter Corporation declared a $0.50 per share cash dividend on its common shares. The company has 27,000 shares authorized, 13,2
Ilia_Sergeevich [38]

Dr Retained Earnings  $5400

Cr Common Dividends Payable $5400

is the journal entry.

<h3>What is outstanding share?</h3>

Share outstanding concerns to the company's current stock, which is occurred by the all of its shareholder. including fund managers' share blocks and restrictive investments made by the company's officials and personnel.

On a any company's balance sheet, Capital Stock is the main heading in which outstanding shares are listed.

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7 0
2 years ago
(6 points) Life rating in Greece. Greece faced a severe economic crisis since the end of 2009. Suppose a Gallup poll surveyed 1,
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Answer:

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2. This is the proportion of Greeks in the sample considered, i.e p = 0.25

3. n = 250 phat - 25% — 0.25 z score - 5%/2 —  2.5 on each end — z = 1.9 se - use formula - .0470.25 +/- 1.9 x .027+: .3675 -: .1325.

4. A. wider

5. B. narrower

Explanation:

In this question, it is essential to estimate the actual population of Greeks that believe they are extremely poor and also suffering. This will be used for proper sampling. Furthermore, in the sample considered, it was discovered that the parameter point estimate is approximately 25% and a change in the sample size or confidence level will alter the interval.

3 0
3 years ago
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