Which step is most important for a project to close

1. What is the revised net operating income if unit sales increase by 16%? 2. What is the revised net operating income if the se

weeeeeb [17]

Answer:

1) NOI = $90,240

2) NOI = 29,250

3) NOI = 133,260

4) NOI = 110,190

Explanation:

The question is incomplete.

Sales (38,000 units) $342,000 ($9.00 per unit)

Variable expenses $228,000 ($6.00 per unit)

Contribution margin $114,000 ($3.00 per unit)

Fixed expenses $42,000

Net operating income $72,000

1. What is the revised net operating income if unit sales increase by 16%

If unit sales increase, we can calculate this with a 16% increase in the contribution margin.

$NOI=CM*(1+0.16)-FE=114,000*1.16-42,000=132,240-42,000\\\\NOI=90,240$

2. What is the revised net operating income if the selling price decreases by $1.50 per unit and the number of units sold increases by 25%?

A reduction of $1.50 in price means a reduction of the same amount in the contribution margin per unit (CMu), as the variable expenses stay the same .

Also, the contribution margin increases by 25%, for the increase in units sold (q).

$NOI=CM_u*q-FE=(3.00-1.50)*(38,000*1.25)-42,000\\\\NOI=1.5*47,500-42,000=71,250-42,000\\\\NOI=29,250$

3. What is the revised net operating income if the selling price increases by $1.50 per unit, fixed expenses increase by $6,000, and the number of units sold decreases by 6%?

The selliing price will be added to the contribution margin per unit.

The units sold are increased 6%.

$NOI=CMu*q-FE=(3.00+1.50)*38,000*1.06-(42,000+6,000)\\\\NOI=4.5*40,280-48,000=181,260-48,000\\\\NOI=133,260$

4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 11%?

The contribution margin per unit, with a increase in price and an increase in variable cost, becomes:

$CM_u=P-VE_u=9.00*(1.20)-(6.00+0.30)=10.80-6.30=4.50$

The units sold is now:

$q'=(1-0.11)q=0.89q=0.89*38,000=33,820$

Then, the net operating income becomes:

$NOI=CM_u*q-FE=4.5*33,820-42,000=152,190-42,000\\\\NOI=110,190$

5 0

2 years ago

on december 1, bright company receives a 6% interest-bearing note from galvalume company to settle a $20,000 account receivable.

andreyandreev [35.5K]

At December 31, bright should record interest revenue of $100. Money gained by lending money or money acquired from depositing or investing can both be referred to as interest revenue.

Is interest revenue a liability or an asset?

If a company anticipates receiving the interest payment within the year, it typically records the interest receivable as a current asset on its balance sheet. Companies that collect interest from loans view this revenue as a significant source of income that belongs at the top of the income statement. It is the price of taking out a loan from a bank, financial institution, bond buyer, or another lender. In order to assist a business finance its operations, such as the acquisition of rival businesses or machinery, plant, and property, interest expense is incurred.

To learn more about interest revenue, refer to:

brainly.com/question/27992328

3 0

6 months ago

Discounters like target and walmart use a(n) ________ strategy that suggests they offer the best quality for that price level

V125BC [204]

Discounters like Target and Walmart use a price value strategy that suggests the offer the best quality for that particular price level. The price value strategy sets the primary price, but it is not an exclusive price, and is set according to the perceived value of products and services to the customers that shop there.

5 0

2 years ago

A stock's price fluctuations are approximately normally distributed with a mean of $104.50 and a standard deviation of $23.62. Y

denpristay [2]

Answer:

$ 74.23

Explanation:

We are given the following:

mean, μ = $ 104.50

standard deviation, σ = $ 23.62

Using the z-score table, we have

P(Z < z) = 10% (since we are evaluating lowest 10% of values)

hence P(Z < z) = 0.10

P(Z < -1.282 ) = 0.10

z = -1.282 (this evaluates to 0.1 on the z-score table)

Using z-score formula,

x = z *σ + μ

substituting the values,

x =- - 1.282 * 23.62 + 104.50

= 74.23

The most for the stock is $ 74.23

6 0

3 years ago

Two firms with identical capital intensity ratios are generating the same amount of sales. However, Firm A is operating at full

Gemiola [76]

Answer:

True

Explanation:

Firm A is operating at full capacity, if its sales keep increasing, then t will need to invest to expand its production capacity. Since firm B is operating below full capacity level, if its sales keep increasing it will have some spare production capacity it can use before operating at full capacity.

Therefore firm A will need to invest in an expansion of its production capacity while firm B can keep operating without new investments.

7 0

2 years ago