Reference no: EM13975383
Smith Corp. has determined that its contribution margin, (P-MC)/P, is 40%. A recent market research study found the following relationship between adverting outlays and sales revenue.
Advertising Outlays Gross Revenues from Sales
$500,000 ........... $4,000,000
$600,000 ........... $4,500,000
$700,000 ........... $4,900,000
$800,000 ........... $5,200,000
$900,000 ........... $5,420,000
$1,000,000 .......... $5,600,000
a. What is the contribution to profits from increasing advertising sales by $1 if Smith Corp. is currently spending between $500,000 and $600,000 on advertising?
b. What is the profit maximizing level of advertising? Explain.
|
Storage warehouse and set off the alarm
: On average, a patrol car passes the warehouse every 20 minutes, and the time between patrol car arrivals is exponentially distributed. It's the middle of the night and a burglar has just broken into the storage warehouse and set off the alarm. Wha..
|
|
Redirection to a technical support
: Bonnie would like to have only the longest 10% of the calls redirected to a technical support manager. How long must a technical support call last before it qualifies for redirection to a technical support manager?
|
|
How fast are the waves traveling
: A fisherman notices that his boat is moving up and down periodically without any horizontal motion, owing to waves on the surface of the water. It takes a time of 2.90s for the boat to travel from its highest point to its lowest, a total distance ..
|
|
Company rental fleet experience punctures
: The U-Drive car rental corporation has found that the cars in the company's rental fleet experience punctures at the rate of 1.25 punctures per 10,000 miles, and the number of punctures per distance traveled is Poisson distributed.
|
|
What is the contribution to profits from increasing
: What is the contribution to profits from increasing advertising sales by $1 if Smith Corp. is currently spending between $500,000 and $600,000 on advertising?
|
|
Customer can request many trips on different dates and times
: Customer can request many trips on different dates and times. 44. Customer pays charges at flight completion. 45. Customer may have credit account with charter. 46. Customer may pay partial amount and charge the remainder to credit account.
|
|
Stated weight on the package
: If the consumer advocate plans to purchase 100 boxes of the product, then file suit against the company if more than 5 of the boxes have content weights below the 20-ounce stated weight on the package, what is the probability that she will end up ..
|
|
Configure the hostname to be _router
: When you are done with that, explain what else you might need to do when configuring a router and what could be done to make the process quicker.
|
|
Number of game minutes between ankle sprains
: The trainer for a professional football team has found that, on the average, his team experiences 2.3 sprained ankles per 1000 game minutes. If a game lasts 60 minutes, and the number of game minutes between ankle sprains is exponentially distribu..
|