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2 years ago

Shelhorse Corporation produces and sells a single product. Data concerning that product appear below:

Business

1 answer:

zloy xaker [14]2 years ago

5 0

Answer:

See explanation section.

Explanation:

Requirement 1

At first we have to find the original net income.

Shelhorse Corporation

Contribution format income statement

For the year ended, December 31, 20YY

Sales Revenue (6,100 × $260) = $1,586,000

Less: Variable expense (6,100 × $91) = $555,100

Contribution Margin = $1,030,900

Less: Fixed Expense $366,000

Net Operating Income = $664,900

Requirement 2

As the marketing manager believes that a $23,000 increase in the monthly advertising budget would result in a 150 unit increase in monthly sales, the new sales volume = 6,100 + 150 = 6,250 and new fixed expense = $366,000 + $23,000 = $389,000

Shelhorse Corporation

Contribution format income statement

For the year ended, December 31, 20YY

Sales Revenue (6,250 × $260) = $1,625,000

Less: Variable expense (6,250 × $91) = $568,750

Contribution Margin = $1,056,250

Less: Fixed Expense = $389,000

Net Operating Income = $667,250

The effect on the company's monthly net operating income of this change = $667,250 - $664,900 = $2,350

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Fashion, Inc. had a Retained Earnings balance of $16,000 at December 31, 2021. The company had an average income of $6,500 over

avanturin [10]

Answer:

Total amount of dividends paid over the last three years is $20500

Explanation:

The net income of the company is either retained in the company or paid out as dividends. To calculate the value of the ending retained earnings, we use the following formula,

Ending balance = Beginning balance + Net Income - Dividends

We first need to calculate the total net income for the 3 year period. The total net income for the 3 year period is, 3 * 6500 = $19500

Plugging in the available values for the ending and beginning balance of retained earnings and net income, we can calculate the value of total dividends paid for the three year period.

15000 = 16000 + 19500 - Dividends

Dividends = 35500 - 15000

Dividends = $20500

4 0

2 years ago

A competitive car wash currently hires 4 workers, who together can wash 80 cars per day. The market price of car washes is $5 pe

DENIUS [597]

Answer:

Number of car washed is 92

So option (a) is correct answer

Explanation:

It is given that 4 workers can wash 80 cars per day

Means initially 80 cars are washed per day

And it is given that rate of car wash is $5 per car

Now price of workers is $60 per day

As per car wash is $5

So number of extra car washed $=\frac{60}{5}=12$

So total number of car washed = 80 + 12 = 92 cars per day

So option (a) is correct answer

7 0

2 years ago

Elena has been absent without excuse twice during the past month. Her manager calls her into his office and issues a written wa

Leona [35]

Answer:

Basic corrective action

Explanation:

Basic corrective action is undertaken by management to its staff or employees in order to eliminate further recurrence of non-conformity with organization procedures, rules and policies. The written warning to Elena is an example of basic corrective action in order for her to stop absenteeism from work.

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2 years ago

A marketing consultant, Sofia, has been studying the effect of increasing advertising spending on product sales. Sofia conducts

UkoKoshka [18]

No, because 100,000 is much greater than the values used in the experiment

Explanation:

The advertisement budget is an estimation of the company's commercial spending for a specified amount of time. More specifically, it is the capital that a organisation is able to put aside to accomplish its marketing goals.

In developing an advertisement budget, a corporation must balance the importance of the promotional dollar against the value of the dollar as known revenue.

Better promotional budgets — and campaigns — focus on consumers' desires and address their challenges, not on business concerns such as overstock elimination.

5 0

2 years ago

Which expense might you pay when you rent? A. property taxes B. utilities C. maintenance D. PMI

IrinaK [193]

Utilities. Since you don't own the property, you are not responsible for paying property taxes. Your landlord should be responsible for any maintenance. PMI is insurance paid on a mortgage - which you wouldn't have as a renter.

8 0

2 years ago