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Marianna [84]
1 year ago
11

The Marketing Control Statement is a valuable statement for marketers because it only utilizes costs that the marketer can contr

ol. True False
Business
1 answer:
pishuonlain [190]1 year ago
3 0

Answer: True

Explanation:

The Marketing Control Statement is quite beneficial to marketers as it avoids fixed costs and shows them the variable and programmed costs both of which can be controlled. This enables them to know what they need to and can change in a way that they can come up with an optimal marketing mix to ensure profitability.

It is also a very uncomplicated statement to prepare which further ingratiates it to marketers who would like to avoid all the jargon of income statements.

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A firm is experiencing a loss of $5,000 per year. The firm has fixed costs of $8,000 per year.a. Should the firm operate in the
kramer

Answer:

(a) Continue to operate.

(b) Shut down

(c) Continue to operate.

Explanation:

(a) It is given that the firm will experiencing a loss of $5000. Therefore, it means that a loss of $5,000 is borne by the producer of the fixed cost. It is a portion of fixed cost but the firm will continue to operate in the short run if it covers all of the variable cost in the short run.

(b) The firms in the long run try to cover all of its variable and fixed cost. If this situation persists then this firm unable to cover its all costs. Therefore, the firm will shut down its operation and go out of the business.

(c) Now, if the firm’s fixed costs are $2,000.

There is a reduction in the fixed cost by $6,000

Previously firm able to cover = $8,000 - $5,000

                                                = $3,000

It means that it cover its fixed cost and hence, the firm will operate in both short run and long run.

4 0
2 years ago
For the past year, Momsen, Ltd., had sales of $46,967, interest expense of $4,088, cost of goods sold of $17,184, selling and ad
Tatiana [17]

Answer:

The Net Income is $4416.1

Explanation:

The net income is calculated as follows,

Sales                            $46967

Less:Cost of sales       <u> (17184)</u>

Gross Profit                   29783

<u>Less:Expenses</u>

Selling & Admin exp     (12051)

Depreciation exp           (6850)

Interest exp                  <u> (4088)  </u>

Net income before ta     6794

tax expense                 <u>(2377.9)</u>

Net Income                   <u>4416.1</u>

4 0
2 years ago
A manager in your organization just received a special order at a price that is "below cost." The manager points to the document
Alex777 [14]

Answer:

So, from a short-run perspective, so long as the sale does not affect other output prices or normal sales volume, a "below cost" sale may result in a net increase in income so long as the revenues cover the differential costs.

However, in the long run all costs must be covered or management would not reinvest in the same type of assets.

If the company must continually sell below the full cost of production then it will most likely get out of that particular business when it comes time to replace those facilities.

5 0
2 years ago
PortaCom manufactures notebook computers and related equipment. PortaCom's product design group developed a prototype for a new
Alchen [17]

Answer:

Instructions are below.

Explanation:

Giving the following information:

Selling Price $284 per unit

Administrative Cost $500,000

Advertising Cost $700,000

(a) Units= 18,500

Direct labor= $50

Direct material= $88

Sales= 18,500*284= 5,254,000

Variable costs= (50 + 88)*18,500= (2,553,000)

Contribution margin= 2,701,000

Administrative Cost= (500,000)

Advertising Cost= (700,000)

Net operating income= 1,501,000

B)Units= 9,500

Direct labor= $51

Direct material= $101

Sales= 9,500*284= 2,698,000

Variable costs= (51 + 101)*9,500= (1,444,000)

Contribution margin= 1,254,000

Administrative Cost= (500,000)

Advertising Cost= (700,000)

Net operating income= 54,000

7 0
2 years ago
Holthausen Corporation issued $400,000 of 11%, 20-year bonds at 108 on January 1, 2013. Interest is payable semiannually on June
lora16 [44]

Answer:

Journal Entries

Explanation:

The journal entries are as follows

1. Cash $432,000

        To Bonds payable $400,000

        To Premium on bond payable $32,000

(Being the issuance of the bond is recorded)

The premium on bond payable is computed below:

= $400,000 ÷ $100 × $8

= $32,000

The $8 comes from $108 - $100

2. Bond payable     $400,000

  Premium on bond payable $27,809

             To Cash    $412,000         ($400,000 × 103%)

             To Gain on bond redemption  $15,809       ($432,000 - $4,191 - $412,000)

(Being the retirement of the bond is recorded)

3 0
2 years ago
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