Business, 04.03.2020 05:29 twistedhyperboles

Data concerning Lemelin Corporation's single product appear below: Per Unit Percent of Sales Selling price $ 230 100 % Variable expenses 115 50 % Contribution margin $ 115 50 % The company is currently selling 7,000 units per month. Fixed expenses are $581,000 per month. The marketing manager would like to cut the selling price by $18 and increase the advertising budget by $37,000 per month. The marketing manager predicts that these two changes would increase monthly sales by 1,600 units. What should be the overall effect on the company's monthly net operating income of this change

Answers: 1

Show answers

Answers

Answer from: JeroMii

Overall Net Income=-$7,800

Overall Net income decreases by $7,800

Explanation:

Current New (After changes)

Units Selling 7,000 7,000+1,600=8600

Sales (7000*$230) Drop of $18, so S.P=$212

=$1,610,000 (8,600*212)=$1,823,200

Variable Exp (7000*$115)=$805,000 (8,600*115)=$989,000

(AT $115)

Contribution $1,610,000 -$805,000 $1,823,200-$989,000

Margin =$805,000 =$834,200

Fixed Expense $581,000 ($581,000+$37,000)

=$618,000

Net Operating $805,000-$581,000 $834,200-$618,000

Income =$224,000 =$216,200

Overall Net Income=New Income-Current Income

Overall Net Income=$216,200-$224,000

Overall Net Income=-$7,800

Overall Net income decreases by $7,800

Answer from: Quest

(i know i'm late but the answer's "things about yourself" because you want to list things you're capable of, why you want to open up the business, the amount of money you're putting into it,etc.) i'm guessing you take online school small business, the answers to the quizzes are all over quizlet. just look up your question and type quizlet after it and it'll pop up.

Answer from: Quest

Acompany's market information will go best with the sentence

Another question on Business

Business, 22.06.2019 13:30

On january 2, well co. purchased 10% of rea, inc.’s outstanding common shares for $400,000, which equaled the carrying amount and the fair value of the interest purchased in rea’s net assets. well did not elect the fair value option. because well is the largest single shareholder in rea, and well’s officers are a majority on rea’s board of directors, well exercises significant influence over rea. rea reported net income of $500,000 for the year and paid dividends of $150,000. in its december 31 balance sheet, what amount should well report as investment in rea?

Answers: 3

Answer

Business, 23.06.2019 02:40

Exercise 6-2 variable costing income statement; explanation of difference in net operating income [lo6-2] ida sidha karya company is a family-owned company located on the island of bali in indonesia. the company produces a handcrafted balinese musical instrument called a gamelan that is similar to a xylophone. the gamelans are sold for $970. selected data for the company’s operations last year follow: units in beginning inventory 0 units produced 200 units sold 180 units in ending inventory 20 variable costs per unit: direct materials $ 130 direct labor $ 300 variable manufacturing overhead $ 30 variable selling and administrative $ 15 fixed costs: fixed manufacturing overhead $ 63,000 fixed selling and administrative $ 25,000 the absorption costing income statement prepared by the company’s accountant for last year appears below: sales $ 174,600 cost of goods sold 139,500 gross margin 35,100 selling and administrative expense 27,700 net operating income $ 7,400 required: 1. under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of last year? 2. prepare an income statement for last year using variable costing.

Answers: 2

Answer

Business, 23.06.2019 04:50

According to fiedler, in situations that are very unfavorable for the leader, it would be wise to choose someone who: a. is task oriented. b. is likely to engage in behaviors that are classified as consideration behaviors. c. has a low lpc score. d. has a high lpc score.

Answers: 1

Answer

Business, 23.06.2019 16:00

Yolo windows, a manufacturer of windows for commercial buildings, reports the following account information for last year (all costs are in thousands of dollars): information on january 1 (beginning): direct materials inventory $ 89 work-in-process inventory 111 finished goods inventory 1,620 information for the year: administrative costs $ 3,610 direct labor 12,900 direct materials purchases 8,210 factory and machine depreciation 11,720 factory supervision 774 factory utilities 940 indirect factory labor 2,880 indirect materials and supplies 688 marketing costs 1,480 property taxes on factory 282 sales revenue 45,800 information on december 31 (ending): direct materials inventory $ 94 work-in-process inventory 138 finished goods inventory 1,430 required: prepare an income statement with a supporting cost of goods sold statement. (enter your answers in thousands of dollars (i.e., 234,000 should be entered as

Answers: 1

Answer

You know the right answer?

Data concerning Lemelin Corporation's single product appear below: Per Unit Percent of Sales Selling...

Questions