Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $ 150 100 % Variable expenses 90 60 % Contribution margin $ 60 40 % The company is currently selling 6,500 units per month. Fixed expenses are $193,000 per month. The marketing manager believes that a $5,400 increase in the monthly advertising budget would result in a 120 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?

Overall effect of the change is an increase in net operating income of $1800

Explanation:

The net operating income  with additional advertising spend is shown below:

Sales (6620*$150)                                     $993,000

Variable expenses(60%*993000)           ($595,800)

contribution margin                                   $397,200.

Fixed expenses($193000+$5400)          ($198,400)

Net operating income                               $198,800

The net operating income  without additional advertising spend is shown below:

Sales (6500*$150)                                     $975,000

Variable expenses(60%*975,000)           ($585,000)

contribution margin                                   $390,000

Fixed expenses                                        ($193,000)

Net operating income                               $197,000

The overall effect of the change is an increase in net operating income of $1800($198800-$197000)

the first successful, urban blues recording, selling more than 75,000 copies, was made in year 1920.

mamie smith recorded the first commercially successful example of the urban blues,   with the recording of “crazy blues”."crazy blues" was recorded on august 10, 1920, in new york city. within a month of the release of “crazy blues” it had sold 75,000 copies.

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi