Answer:
The opearing income will increase by 71,200
Explanation:
ΔSales for 600
↓CM by 10 (38 Variable - 48 variable) = -10
<u>First: </u>
We have 600 more of sale at this new CM
ΔSales for 600 x Contribution Margin per unit 142 = Δ85,200
<u>Second : </u>
Our other units will have a decrease in their contribution
1,400 x ↓CM (-10) = ↓-14,000
Net 71,200
The opearing income will increase by 71,200
Gross value added (GVA) is defined as output (at basic prices) minus intermediate consumption (at purchaser prices); it is the balancing item of the national accounts' production account. GVA can be broken down by industry and institutional sector.
hope this helped, good luck <3
Answer:
a. increase the price of the software
Explanation:
If I were the sales manager for a software company and have been informed that the price elasticity of demand for your most popular software is less than 1. In order to increase total revenues from that product, I will increase the price of the software.
The reason for such decision is based on the fact that when the price elasticity of demand of a product is lower than 1, an increase in the price of that product results in an increase in revenue for the seller.
Answer:
d. decrease by $200.000.
Explanation:
The computation of the segment profit is shown below:
Segment profit = Segment revenues - Segment cost
= $1.2 million - $1.0 million
= $0.2 million or $200,000
Since the management want to drop the segment which results to decrease in the overall corporate profits that means the segment profit will also got decreased by $200,000
The overhead cost is not relevant. Hence, ignored it
Answer:
very confused but okayyyy
