What the effect on operating income will be a

Assignment Help Financial Accounting
Reference no: EM132856461

Danson & Highsmith LLC expects the following results for the next accounting period:

Sales $372,000

Variable costs $189,720

Fixed costs $167,780

Expected production and sales in units 4,650

Problem 1: The sales manager believes sales could be increased by 800 units if advertising expenditures were increased by $13,000. If advertising expenditures are increased and sales increase by 800 units, the effect on operating income will be a(n)

A. Decrease of $18,360.

B. Decrease of $40,080.

C. Increase of $18,360.

D. Increase of $40,080.

Reference no: EM132856461

Questions Cloud

What would be the required amount of dollar sales : If the desired target profit is $146,050, what would be the required amount of dollar sales? Candyland has prepared the following budgeted data based on a sales
What are characteristics of liquid asset : Identify two ratios to use to analyze a firm's liquidly position and write out their equations. What are the characteristics of a liquid asset?
COIT 20268 Responsive Web Design Assignment : COIT 20268 Responsive Web Design Assignment Help and Solution, Central Queensland University - Assessment Writing Service
What is best estimate of the company net operating income : If the company's sales for a month are $723,000, what is the best estimate of the company's net operating income? Assume that the fixed monthly expenses
What the effect on operating income will be a : Danson & Highsmith LLC, If advertising expenditures are increased and sales increase by 800 units, the effect on operating income will be a(n)
How develop a disaster recovery plan for an organization : How Develop a disaster recovery plan for an organization. There are many different templates available online for you to use as reference and guidance.
Introduction to hypothesis testing : Determine the Conclusion: Assume that you obtained a p-value less than your selected value for alpha, provide a conclusion about your research hypothesis.
What is the expected percentage of discount : During a promotion, Christina's department store offers a mailing "scratch a winner - discount savings." after customers select the items they wish to purchase
Principal forms of business organization : What are the three principal forms of business organization? Identify and briefly compare the two leading stock exchange in the United States today?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Which is most preferable if an investor can only select

Which is most preferable if an investor can only select one pair of companies? It does not matter which two are selected-there is no preference order.

  What is the cost of goods sold for the year ending

During 2013, the company sold 10070 number of widgets. What is the cost of goods sold for the year ending on 12/31/2013

  Firm after-tax cost of debt on the? bond

Carraway Seed Company is issuing a ?$1,000 par value bond that pays 12 percent annual interest and matures in 9 years. Investors are willing to pay

  How much money you should save right now in the bank

If the college you enter is 4 years and the tuition for each year is $100,000 per year. How much money you should save right now in the bank

  Determine the cash proceeds from the discounted notes

Determine the cash proceeds from the discounted notes 10-month, 12% note for P6,400,00 dated May 1, 2018, discounted on August 1,2018

  Write up an updated cashbook for ackerman stores

Ackerman's Stores compared their cashbook for September 2013, Write up an updated cashbook for Ackerman's Stores and show the new balance on 1 May 2012.

  Calculate the new balances in the general ledger accounts

Calculate the new balances in the general ledger accounts. Create an adjusted trial balance from the balances in the general ledger accounts

  Determine the diluted earnings per share to be reported

In 2016, the company had issued 45,000 call options to purchase common shares at a price of $34 per share. Determine diluted earnings per share to be reported

  What is the tax treatment of the trading stock

Advise FVS what income is derived and when and what tax consequences follow on default - What is the tax treatment of the trading stock the subject of a lay-by

  Should take a tuition and fees deduction

Local university for a cost of $1,500. To maximize her taxes, should she take a tuition and fees deduction or an education credit? (Assume a 15 percent tax)

  What is company warranty expense for month of november

A company sells computers for $1,600 each. Each computer has a two-year warranty that covers replacement of defective parts. It is estimated that 2% of all computers sold will be returned under the warranty with an average cost of $186 each. During N..

  Abc inc just paid a dividend of $2.23 and the dividends

ABC INC just paid a dividend of $2.23 and the dividends are expected to indefinitely grow at a constant 2.6% rate. If investors require a return of 8.6% from this stock, what is the value of the ABC stock? Write in the value with two decimal points b..

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!

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