09 May WHAT WOULD BE THE EFFECT OF THIS INCREASE IN ADVERTISING ON THE COMPANY’S MONTHLY INCOME?
The fixed costs of Giga Company are $386 000 and the total variable costs for its only product are 65% of the sales price which is $110. Giga currently sells 7 100 units per month and is looking to sell more. Consider each of the following independently:Part AThe product does not contain any gluten so management would like to start noting this fact on its product’s labeling but in order to do so needs to be sure there is no contamination anywhere in the process. Additional containment procedures would increase variable costs by $9 per unit and the expected monthly sales increase would be 500 units. What would be the effect of this change on the company’s monthly income? AnswerDecrease by $49 150Increase by $14 750Increase by $31 250Decrease by $49 922Part BThe marketing manager believes that a $9 000 increase in the monthly advertising budget would result in an increase in monthly sales of 170 units. What would be the effect of this increase in advertising on the company’s monthly income? AnswerDecrease by $2 455Increase by $268 624Decrease by $4 726Increase by $270 895Part CThe marketing manager believes that sales staff could sell as additional 180 units of product each month if properly motivated and is considering cutting their collective monthly salaries by $33 000 while giving them a $11 commission on each unit sold. What effect should this strategy have on monthly income? AnswerIncreaseDecrease of $
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.