Marketing manager recommendation

Assignment Help Accounting Basics
Reference no: EM13144987

Riven Corporation has a single product whose selling price is $10. At an expected sales level of $1,000,000, the company's variable expenses are $600,000 and its fixed expenses are $300,000. The marketing manager has recommended that the selling price be increased by 20%, with an expected decrease of only 10% in unit sales. What would be the company's net operating income if the marketing manager's recommendation is adopted?

Reference no: EM13144987

Questions Cloud

Value chain analysis to identify value-creating activities : Conduct a Value Chain analysis to identify value-creating activities. Determine if the company has a sustainable competitive advantage, supporting your claim(s) or recommending action(s).
Find probability that cloths grabs are the wrong size : Hanging on the rack are 4 medium, 10 large, and 6 extra-large blouses. Find the probability of each event described. The fi rst two blouses she grabs are the wrong size.
Why do not we swell when we swim : Cells placed in a hypotonic solution will have water movement into the cell and it will swell. Why don't we swell when we swim?
Transactions with related entities-some : It is common for an entity to have transactions with related entities-some of which are fully owned, some of which share common ownership but are not otherwise related, and others wher ownership is small but there is control.
Marketing manager recommendation : The marketing manager has recommended that the selling price be increased by 20%, with an expected decrease of only 10% in unit sales. What would be the company's net operating income if the marketing manager's recommendation is adopted?
Compute accrual-basis net income : Of the amount paid, $30,000 was for expenses incurred on account in 2010. In addition, Leno incurred $142,000 of expenses in 2011 which will not be paid until 2012.
Determine the present value of the lease : Determine the present value of the lease payments at June 30, 2009 (to the nearest $000) that Blue uses to record the leased asset and lease liability.
Find probability of meeting each individual specification : If each specification will have the same chance of being met, how large must we make the probability of meeting each individual specification?
Probability-teammate has two or fewer years of experience : What is the probability that this teammate has two or fewer years of experience? more than five years of experience? What is the probability that, considering both of Dave's two teammates.

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Problem related to divisions net assets

Books-R-Us, Inc. committed to sell its comic book division (a component of the business) on September 1, 2010. The book value of the division's net assets was $400,000 and the estimated selling price of the net assets was $350,000.

  Determining the correct amount of inventory

FOB destination, that will be received by Hastings on January 3. Determine the correct amount of inventory that Hastings should report.

  Accounting for bad debts

What amount of bad debts expense will Hamilton Company report if it uses the direct write-off method of accounting for bad debts?

  Adjustment to record bad debts

An aging of a company's accounts receivable indicates that $3,000 is estimated to be uncollectible. If Allowance for Doubtful Accounts has a $1,200 credit balance, the adjustment to record bad debts for the period will require a:

  Net operating income of short-run changes

The impact on net operating income of short-run changes in sales for a segment can be most clearly predicted by analyzing:

  How to indicate if any of their choices is work-related

Each Student is to individually complete and submit a research Paper as part of their Final Grade. The subject of this Paper is to be on a legal subject related to forensic accounting, such as money laundering, terrorist financing, tax fraud, inte..

  What scheme does it seek to prevent

What is the "kiddie tax" all about? What is its purpose? What "scheme" does it seek to prevent? Do you think it is really necessary? If so, why do you think it cuts off at 14?

  Government and institutional accounting

In your role as the financial manager, you routinely review your firm's financial statements and financial ratios to evaluate the financial health of your company.

  What is annes annual after-tax rate of return

Anne's marginal income tax rate is 30 percent. She purchases a corporate bond for $10,000 and the maturity, or face value, of the bond is $10,000. If the bond pays 5 percent per year before taxes, what is Anne's annual after-tax rate of return fro..

  Hamilton company of control policies

Identify the components of internal control to which each policy or procedure relates. For each item, identify one other policy or procedure for that internal control component that is not on the preceding list.

  Fixed asset turnover-returns-allowances

During 2011, Company X sells 500,000 units for $8 each. Sales discounts are $100,000 and sales returns and allowances are $300,000. The company reported a total of $710,000 in fixed assets on January 1, 2011 and $890,000 in fixed assets on Decembe..

  What is the effect of dixons proposed change

Is the proposed change in asset life unethical, or is it simply a good business practice by an astute president?

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