Answer:
The effect on net operating income would be an increase of $137,900
Explanation:
Giving the following information:
Selling price $85
Variable expenses per unit $ 35
If Price Paper spends an additional $12,100 on advertising, sales volume should increase by 3,000 units.
To calculate the effect on income, we need to determine the incremental total contribution, and deduct the incremental fixed costs:
Effect on income= 3,000*(85 - 35) - 12,100= $137,900
The $16 is not enforceable because of a preexisting duty.
Answer:
The company's plantwide overhead rate on a per machine hour basis is $5 per hour.
Explanation:
Acording to the data, we have the following:
Direct Labour Cost=$200,000
Direct Labour Hours= 16,000
Total Overhead Cost= $25,000
Machine Hours= 5,000
Therefore, to calcuate the company's plantwide overhead rate on a per machine hour basis, we use the following formula:
Company's plantwide overhead rate= Total Overhead/ Machine hours
= $ 25,000 / 5000 hours
=$5 per hour
Answer:
Option C is the correct answer - the adoption curve shows that some groups accept a new idea before others.
Explanation:
The innovation adoption curve matches the entry of users into various categories. It is used to separate customers based on their readiness to accept new technology or an idea.
Normally, the first set of people to adopt the new idea or the technology are the innovators.
Therefore, option C is the correct answer - the adoption curve shows that some groups accept a new idea before others.
Answer:
Extract as low as possible at present and as high as much possible in the future.
Explanation:
The company must sell fewer natural gas units because the sales price is at present and this will constitute to fewer income coming by the sale of natural gas, the company must only earn from natural gas as much as required to finance its needs at present. So to earn a higher revenue proportion in future due to increase in the selling price of the product, the company must extract as much as possible in future to earn more.
