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2 years ago

If Local Co. had an increase in selling expenses of $300,000, how would that affect each of its margins?

Business

1 answer:

wariber [46]2 years ago

6 0

Answer:

D. Selling expenses do not affect the gross margin, but the increase in such expenses will decrease the other margins.

Explanation:

As Selling expenses are charged after gross Income or profit. So, it will not effect the gross income / profit. Other margin are calculated after adjusting the selling expenses, so that will be effected. Operating Margin and Net profit margin are both effected by change in the selling expenses.

Following is the Format of income statement

Sales

Less: Cost of Sales

Gross income / Profit

Less: Operating expenses

Admin Expenses

Selling Expenses

Other Expense

Operating Income / Profit

Less: Interest expense

Less: Tax

Net Income / Profit

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Answer:

$126

Explanation:

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Less

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2 years ago

Burrito King (a new fast-food franchise opening up nationwide) has successfully automated burrito production for its drive-up fa

bezimeni [28]

Answer:

(A)0.6600 (B) 1.325 (C) 0.997 or 1 minute

Explanation:

Solution

Given that:

The constant rate = 30 seconds

The arrival rate according to Poisson distribution is = 45 seconds

Now,

(A) We solve for the average length line of cars

The formula is given below:

Lq = λ²/ 2μ ( μ -λ)

Here,

λ = this is the mean time of arrival rate

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Thus we compute for the mean time arrival rate which is given below:

The mean arrival rate λ = arrival rate/ 60 seconds

= 60/45

= 1.33 customer per minute

Then we solve for the means service rate which is given below

The mean service rate μ = 60 seconds/ mean rate

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We will now solve for the average line length in cars which is shown below:

Lq = λ²/ 2μ ( μ -λ)

Lq = 1.33²/2*2 (2-1.33)

Lq = 1.7689/4 (0.67)

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Therefore the average length in line for cars is 0.6600 cars

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2 years ago

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snow_tiger [21]

Answer:

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Explanation:

The principle of Unity of Command stipulates all staff or employee, for sakes of clarity and avoidance of confusion, an abiguity, should take instructions from only one boss or line manager.

On the other hand, the principle of management that is being followed in the above case is that of Taylors Functional Foremanship.

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2 years ago

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Answer:

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2 years ago

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strojnjashka [21]

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2 years ago

If Local Co. had an increase in selling expenses of $300,000​, how would that affect each of its​ margins? ​

If Local Co. had an increase in selling expenses of $300,000, how would that affect each of its margins?