User Account

All Pages

Company net operating income should

Assignment Help Financial Management
Reference no: EM131092653

O'Neill, Incorporated's segmented income statement for the most recent month is given below.

 

  Total

    Store A

   Store B

  Sales

$161,000

$69,300

$91,700

  Variable expenses

61,467

33,957

27,510
       

  Contribution margin

99,533

35,343

64,190

  Traceable fixed expenses

71,300

19,500

51,800
       

  Segment margin

28,233

$15,843

$12,390

  Common fixed expenses

24,000

    
       

  Net operating income

$ 4,233

    
       

 

The marketing department believes that a promotional campaign at Store A costing $9,300 will increase sales by $21,300. If its plan is adopted, overall company net operating income should:

increae/decrease by how much?

Reference no: EM131092653

Questions Cloud

Chosen topic fits into the field of psychology : Prompt: Analyze the scholarly debate on the theory and research related to your research questions or intervention. The literature review should not be a collection of summaries.
Write down lagrangian for consumer optimization problem : Write down the Lagrangian for the consumer's optimization problem, and find the first order conditions for the choice of consumption at arbitrary dates t and t + 1
What is probability that at most two phones will malfunction : GB513 - What is the probability that no phone will malfunction and What is the probability that at most two phones will malfunction?
National income of a country : Discuss why and how the three approaches used in measuring the national income of a country give the same estimates.
Company net operating income should : The marketing department believes that a promotional campaign at Store A costing $9,300 will increase sales by $21,300. If its plan is adopted, overall company net operating income should:
Countries start with equal gdp : Two countries start with equal GDPs. The economy of Country A grows at an annual rate of 3 percent, whereas the economy of Country B grows at an annual rate of 4 percent.
Linked list : Let A and B be two structures of type linked list. Write a function for creating new linked list C that contains elements alternately from A and B beginning with first element of A. If you run out of the elements in one of the lists then append the r..
Consider perfectly competitive market for product : Consider a perfectly competitive market for a product X that is in its long run equilibrium. Suppose that this is an inferior good, and that consumer's income increases and the increase is expected to be permanent. Assuming that the prices of the inp..
How would this change if the good is an inferior good : For most normal goods the income effect and the substitution effect work in the same direction; so when the price of a good falls,both the income and substitute effects lead to a higher quantity demanded. how would this change if the good is an infer..

Reviews

Write a Review

Financial Management Questions & Answers

  What is the discounted payback period for cash flows

An investment project has annual cash inflows of $4,500, $3,800, $5,000, and $4,200, for the next four years, respectively. The discount rate is 15 percent. What is the discounted payback period for these cash flows if the initial cost is $5,600?

  Fully depreciated on a straight-line basis

Sanders Enterprises, Inc., has been considering the purchase of a new manufacturing facility for $276,000. The facility is to be fully depreciated on a straight-line basis over seven years. It is expected to have no resale value after the seven years..

  Dividends are expected to grow at rate

Synovec Co. is growing quickly. Dividends are expected to grow at a rate of 22 percent for the next three years, with the growth rate falling off to a constant 7 percent thereafter. If the required return is 12 percent, and the company just paid a di..

  What is the incremental savings of buying the valves

Howell Corporation produces an executive jet for which it currently manufactures a fuel valve; the cost of the valve is indicated below: Cost per Unit Variable costs Direct material $900 Direct labor 600 Variable overhead 300 Fixed costs. the space o..

  What is the rate of return on investment

Calculating the Rate of Return of Investment Using Financial Leverage. Suppose Shaan invested just $10,000 of his own money and had a $90,000 mortgage with an interest rate of 8.5 percent. If after three years he sold the property for $120,000. What ..

  What do you think the ex-dividend price will be

Miller, Inc., has declared a $6.30 per share dividend. Suppose capital gains are not taxed, but dividends are taxed at 10 percent. New IRS regulations require that taxes be withheld at the time the dividend is paid. Miller sells for $114 per share, a..

  Based on the constant-growth dividend discount model

A firm pays a current dividend of $1, which is expected to grow at a rate of 6% indefinitely. If the current value of the firm’s shares is $106, what is the required return applicable to the investment based on the constant-growth dividend discount m..

  Net profit and cash flow from given sale

Johnson, Inc. has just ended the calendar year making a sale in the amount of $10,000 of merchandise purchased during the year at a total cost of $7,000. Al- though the firm paid in full for the merchandise during the year, it has yet to collect a..

  What is the value of the annuity in year

Suppose that you will receive annual payments of $21,400 for a period of 22 years. The first payment will be made 7 years from now. If the interest rate is 7.50%, What is the value of the annuity in year 6, What is the current value of this stream of..

  Advantages of using simulation include

Advantages of using simulation include: A. a range of possible outcomes presented. B. is good only for single period investments since discounting is not possible. OR C. adjustment for risk in the resulting distribution of net present values. OR D. g..

  About the retirement account

Carla Lopez deposits $7980 a year into her retirement account. If these funds have an average earning of 3 percent over the 19 years until her retirement, what will be the value of her retirement account?

  Present value of annuity

Assume payments are done at the begining of each year. Calculate the present value of annuity for:

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd