For internal planning and decision-making purposes, the owner of five macaws would like to translate the company's income statement into the contribution margin format. since five macaws is online only, all of its cost of goods sold is variable. a large portion of the selling and marketing expenses consists of freight-out charges ($ 19 comma 400), which were also variable. only 20% of the remaining selling and marketing expenses and 25% of the website expenses were variable. of the other operating expenses, 90% were fixed. based on this information, prepare five macaws' contribution margin income statement for last year.

Recently, verizon wireless ran a pricing trial in order to estimate the elasticity of demand for its services. the manager selected three states that were representative of its entire service area and increased prices by 5 percent to customers in those areas. one week later, the number of customers enrolled in verizon's cellular plans declined 4 percent in those states, while enrollments in states where prices were not increased remained flat. the manager used this information to estimate the own-price elasticity of demand and, based on her findings, immediately increased prices in all market areas by 5 percent in an attempt to boost the company's 2016 annual revenues. one year later, the manager was perplexed because verizon's 2016 annual revenues were 10 percent lower than those in 2015"the price increase apparently led to a reduction in the company's revenues. did the manager make an error? yes - the one-week measures show demand is inelastic, so a price increase will decrease revenues. yes - the one-week measures show demand is elastic, so a price increase will reduce revenues. yes - cell phone elasticity is likely much larger in the long-run than the short-run. no - the cell phone market must have changed between 2011 and 2012 for this price increase to lower revenues.

The research of robert siegler and eric jenkins on the development of the counting-on strategy is an example of design.

Afamily wishes to save for future college expenses. which financial tool should the family invest in?