Answer:
a. Income before advertising budget increase:
= Contribution margin - Fixed costs
= (38 * 3,600) - 79,000
= $57,800
Income after advertising budget increases:
= Sales - Variable expenses - Fixed expenses
Sales = (3,600 + 100 units) * 95 per unit
= $351,500
Variable expenses = 60% * 351,500
= $210,900
Fixed expenses = 79,000 + 8,400 advertising
= $87,400
Income = 351,500 - 210,900 - 87,400
= $53,200
b. Income decreased with the increase in advertising so<u> Advertising budget should not be increased. </u>
Answer:
B,C, D, E
Explanation:
B. Rising prices (inflation) makes comparism of financial data less reliable. This is one of the major drawbacks of historic financial information because such information does not take into account the impact of inflation.
C. Money loses its attributes as a store of value in inflationary period. This is because the nominal value of money increase through an increase in Consumer Price Index (CPI) while the real value of money drops as the unit amount of purchasing power decrease from increase in prices.
D. The demand for money increases in inflationary period as more money chases few goods. This reduces purchasing power of individuals and leads to rise in prices.
E. This has the potential of reducing purchasing power as money loses its value in periods of inflation.
Judiciary is the judicial authorities of a country; judges collectively.
Executive is the person or branch of a government responsible for putting policies or laws into effect.
Answer:
Global and international
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Explanation:
Global marketing views the whole world as one, and creates products that will only require weeks to fit into any regional marketplace.
International marketing means that marketing decisions are made in the individual countries, with staff who is the most knowledgeable about the target markets.
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Inflation is undesirable because it redistributes income from those who can raise prices to those who cannot.
<h3>What is inflation?</h3>
- In the field of economics, inflation refers to an overall rise in the cost of goods and services throughout a nation.
- Each unit of currency may purchase fewer products and services as the general price level rises, hence inflation is associated with a decline in the purchasing power of money.
- A general increase in prices over time diminishes customers' purchasing power because a constant quantity of money will eventually allow for less consumption.
- Whether inflation is running at 2% or 4%, consumers still lose purchasing power; the higher inflation rate only doubles that loss.
- Those interest rates that are fixed for the duration of the loan, won't fluctuate in line with inflation.
To learn more about Inflation refer to:
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