Answer:
$18,000
Explanation:
The computation of overall effect on the company's monthly net operating income is shown below:-
Current Proposed
Sales $800,000 $837,000
(200 × 4000) (200 - 14) × (4,000 + 500)
Variable expenses $160,000 $180,000
(40 × 4000) (40 × (4,000 + 500))
Contribution margin $640,000 $657,000
Fixed expenses $531000 $566,000
($531,000 + $35,000)
Net operating
income $109,000 $91,000
Decrease in net operating income = Current - Proposed
= $109,000 - $91,000
= $18,000
So, for computing the overall effect on the company's monthly net operating income we simply applied the above formula.
Answer:Highlight celebrities who use Sumac e-readers.
Explanation:
According to the question, due to tough competition in market regarding the e-reading product , Sumac industries wants that they can have superior position in e-reader market than other e-reader business organizations.Thus,they want a secure position for their company.
A good strategy for maintaining their position can be done through putting spot-light on the celebrity users of Sumac e-reader.This will be highlighted among celebrity fans or followers and general customers. It will promote or inspire people to purchase Sumac e-reader more as celebrities are using their product.
Answer:
<u>THEORY X</u> managers subscribe to the traditional view of direction and control of subordinates, who they see as indolent and lazy, whereas <u>THEORY Y</u> managers naturally take the opposite view of workers, seeing them as willing and eager to be productive.
Explanation:
Douglas McGregor developed the theory X and Y management models in the late 1950s.
Theory X managers have a fairly negative view of their employees (and probably humanity as a whole), and they consider them lazy, with very little personal ambition and motivation, and that they work only for their paycheck. They believe that strict supervision and a system of rewards and payments is the best management model.
On the other hand, theory Y managers have a much more positive view of their employees (and humanity as a whole), they consider them responsible, capable of making good decisions, are internally motivated to work better, and not just because they want to earn a paycheck. They emphasis on job satisfaction and less supervision.
Based on the restaurant prices for pizza and the different quantities that they will offer the pizzas, the slope of demand curve is -0.025
<h3>What is the slope of the demand curve?</h3>
The slope can be found as:
= Change in price / Change in quantity
Solving gives:
= (5 - 10) / (300 - 100)
= -5 / 200
= -0.025
In conclusion, the slope of the demand curve is -0.025
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When the activity level increases by 15%, net operating income in the flexible budget will ordinarily increase by -more than 15% b/c fixed costs do not increase with changes in activity.
<h3>
What is Net operating income?</h3>
- Net income in business and accounting is an entity's revenue less costs, depreciation and amortization, interest, and taxes for a certain accounting period..
- Net Operating Income, or NOI for short, exists a formula those in real estate use to quickly calculate the profitability of a particular investment. After deducting essential operational costs, NOI calculates the revenue and profitability of investment real estate property.
- By deducting all annual expenses from income, the NOI formula determines how profitable a potential investment property is over the course of a single year.
- After all costs have been deducted, operating profit displays a company's earnings, excluding the cost of debt, taxes, and some one-time expenses.
- Net income, on the other hand, represents the profit remaining after all costs incurred in the period have been subtracted from revenue generated from sales.
Hence, When the activity level increases by 15%, net operating income in the flexible budget will ordinarily increase by -more than 15% b/c fixed costs do not increase with changes in activity.
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