Marketing managers recommendation

Assignment Help Accounting Basics
Reference no: EM13155562

Riven Corporation has a single product whose selling price is $18. At an expected sales level of $2,106,000, the company's variable expenses are $585,000 and its fixed expenses are $300,000. The marketing manager has recommended that the selling price be increased by 25%, with an expected decrease of only 11% in unit sales. What would be the company's net operating income if the marketing manager's recommendation is adopted?

Reference no: EM13155562

Questions Cloud

Income tax consequences to the parties : Amy is the sole shareholder of Garnet Corporation. During the year, Amy leases a building to Garnet for a monthly rental of $40,000. If the fair rental value of the building is $30,000, what are the income tax consequences to the parties involved?
Find standard error of estimate if large sample is chosen : Determine the standard error of estimate. Suppose a large sample is selected (instead of just five). About 68 percent of the predictions would be between what two values?
The temperature dependence of the reaction rate constant : The temperature dependence of the reaction rate constant is given by the equation: ... ln k = ln A - Ea/RT ... ... Where: k = rate constant T = temperature A
What''s the volume of pure hydrogen present in a sample : What's the volume of pure hydrogen present in a sample of 55.0 mL of gas saturated with water vapour at 27 °C, if the total pressure is 104.8 kPa?
Marketing managers recommendation : The marketing manager has recommended that the selling price be increased by 25%, with an expected decrease of only 11% in unit sales. What would be the company's net operating income if the marketing manager's recommendation is adopted?
Top five mergers and acquisitions : Determine the top five mergers and acquisitions (M&A) for the current year up to the date of this assignment. Provide a list including the name of the acquirer, the target, the value of the deal, and the type of reorganization involved.
What are the chemical journey of a carbon atom : what are the chemical journey's of a carbon atom from carbon dioxide in the air and a hydrogen atom from a water molecule that have entered a plant cell and what are their chemical journeys as they are involved in in the process of photosynthesis ..
What type of returns to scale is consistent : If the number of trucks (K) decreases by 10% next year, how much will output (Q) decrease? What type of returns to scale is consistent with the above production function?
To carry out a validation study : To carry out a validation study, an I/O psychologist is developing a regression equation from data collected from those hired two years ago

Reviews

Write a Review

Accounting Basics Questions & Answers

  Which of the following conditions will not normally cause

An IT system is designed to ensure that management possesses the information it needs to carry out its functions through the integrated actions of.

  Performance evaluation-residual income

Williamson Group operates a chain of bookstores. A recent business expansion plan resulted in the opening of more than 25 new stores. The Upland store has one more feature that the Stowe store does not have-a small coffe shop.

  What is the amount of yap co owner equity

The total assets of Yap Co. are $600,000 and its liabilities are equal to two-thirds of its total assets. What is the amount of Yap Co.'s owner's equity?

  Prepare the partnership income statement for the year

Revenues for the year ended 31 January 20X1 were $507,000 and expenses were $330,000. Under plan (b) above prepare the partnership income statement for the year.

  Provide accurate descriptions of andersen''s involvement

Assume that the excerpts from the Powers Report shown in Exhibit 3 provide accurate descriptions of Andersen's involvement in Enron's accounting and financial reporting decisions. Given this assumption, do you believe that Andersen's involvement in t..

  Considering a new capital investment

Upper Darby Park Department is considering a new capital investment. The following information is available on the investment. The cost of the machine will be $200,000.

  Concept of sustainable income

Understand the concept of sustainable income. Indicate how irregular items are presented. Explain the concept of comprehensive income.

  Dividends received by the preferred stockholders

The board of directors declared and paid a $6,000 dividend in 2009. In 2010, $24,000 of dividends are declared and paid. What are the dividends received by the preferred stockholders in 2010?

  What is the direct labor efficiency variance

Fluff expected to use 1,000 direct labor hours. Fluff actually paid a wage rate of $12 per hour. The static budget variance equals the flexible budget variance for direct labor.

  Tax consequences of transfer to all parties

Lyle performed legal and accounting work during the incorporation process in return for six shares of stock. Determine the tax consequences of the transfer to all parties

  Determining affect pre-tax profits

If Primrose could lower its inventories and receivables by 10 percent each and increase its payables by 10 percent, all without affecting either sales or cost of goods sold, what would the new CCC be, how much cash would be freed up, and how would..

  What limits are placed on the selection of a tax year

What limits are placed on the selection of a tax year of an S corporation? How do these limits differ from those applicable to C corporations and partnerships?

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