Feather friends, inc., distributes a high-quality wooden birdhouse that sells for $80 per unit. variable expenses are $40.00 per unit, and fixed expenses total $200,000 per year.
refer to the above mentioned data. assume again that the company sold 28,500 units last year. the president does not want to change the selling price. instead, he wants to increase the sales commission by $1.70 per unit. he thinks that this move, combined with some increase in advertising, would double annual unit sales. by how much could advertising be increased with profits remaining unchanged? do not prepare an income statement; use the incremental analysis approach.

Sarah salesrep is brand new to her job selling "lifetime" printers that never need replacement ink cartridges. the problem is that these printers cost ten times more than a regular printer, so it is difficult to get prospective buyers to understand the cost savings of buying it. to break through the barrier and begin making sales, sarah should use a analysis that highlights her printer's lower cost.

Abank has $132,000 in excess reserves and the required reserve ratio is 11 percent. this means the bank could have in checkable deposit liabilities and in (total) reserves.

Aproduction line has three machines a, b, and c, with reliabilities of .96, .86, and .85, respectively. the machines are arranged so that if one breaks down, the others must shut down. engineers are weighing two alternative designs for increasing the line’s reliability. plan 1 involves adding an identical backup line, and plan 2 involves providing a backup for each machine. in either case, three machines (a, b, and c) would be used with reliabilities equal to the original three. a. compute overall system reliability under plan 1. (round your intermediate calculations and final answer to 4 decimal places.) reliability b. compute overall system reliability under plan 2. (round your intermediate calculations and final answer to 4 decimal places.) reliability c. which plan will provide the higher reliability? plan2plan1