The given optimization problem is to be solved using the dual simplex method and the optimal solution is to be found. The problem is as follows:Maximize [tex]z = 5x1 + 7x2 + 8x3[/tex]Subject to,[tex]3x1 + 2x2 + x3 ≤ 5 4x1 + 3x2 + 2x3 ≤ 7 x1 , x2 , x3 ≥ 0[/tex]Before applying the dual simplex method.
we need to convert the given primal problem into a standard form as follows:[tex]3x1 + 2x2 + x3 + x4 = 54x1 + 3x2 + 2x3 + x5 = 7z = 5x1 + 7x2 + 8x3[/tex]Now,
the dual problem can be written as:Minimize[tex]Z = 5y1 + 7y2Subject to,3y1 + 4y2 ≥ 5 2y1 + 3y2 ≥ 2 y1, y2 ≥ 0[/tex]The given initial basic feasible solution can be written as: [tex]x4 = 5, x5 = 7, z = 0,[/tex] and other variables[tex]x1, x2, x3 = 0[/tex].
Updating the basic feasible solution,[tex]x1 = 7/12, x2 = 13/12, z = 103/6,[/tex]
and other variables[tex]x3, x4, x5 = 0[/tex].Since the objective function z has no positive coefficient in it, the solution obtained is optimal.Hence, the optimal solution to the given problem using the dual simplex method is[tex]:x1 = 7/12, x2 = 13/12, x3 = 0, z = 103/6.[/tex]
To know more about variables visit:
https://brainly.com/question/15078630
#SPJ11
Discuss the strategies Coca-Cola India could use to enter the IFCD market. What are likely obstacles to Coca-Cola India’s success in the launch of new IFCD products?
Coca-Cola India can enter the IFCD market by conducting market research, innovating products, utilizing distribution channels, and regionalizing marketing strategies, but it will face challenges such as competition, infrastructure limitations, regulations, and cultural differences.
To enter the Indian Flavored Carbonated Drinks (IFCD) market, Coca-Cola India could use several strategies, including the following: Market Research: Coca-Cola India can conduct market research to identify potential customers and their requirements and preferences, market size, demographics, and purchasing power.
This will assist Coca-Cola India in comprehending the market's current condition and developing a market plan and product offerings accordingly. Product Innovation: To attract customers, Coca-Cola India can create innovative flavored carbonated drinks that are different from those of competitors. The company should focus on providing new flavors that meet local tastes while maintaining the product's quality and value price.
Distribution Channels: Coca-Cola India can use existing distribution channels to reach a wider customer base and create more significant market awareness. Coca-Cola India should leverage its current network and also collaborate with regional distributors to increase its coverage.
Regionalization: Coca-Cola India should create distinct marketing strategies for different regions and demographics in India. By doing so, they can optimize their brand value and market potential. Coca-Cola India can also customize their promotional campaigns and product offerings based on local tastes and preferences.
Coca-Cola India may face the following challenges in introducing new IFCD products in India: Competition: Coca-Cola India will face stiff competition from established domestic brands in the Indian market that is known for providing regional flavors. Coca-Cola India will have to create and market a unique product offering to gain market share.
Infrastructure: India's infrastructure limitations, such as transportation and logistics, could make it challenging for Coca-Cola India to distribute their products to different parts of the country.Regulation: The Indian government has introduced new policies to promote local brands and made it difficult for foreign companies to enter the market.
Coca-Cola India may face difficulties meeting these regulatory criteria. Cultural Differences: The cultural differences in India are vast and diverse. Coca-Cola India must consider cultural differences and develop a product that appeals to the local population.
To learn more about Coca-Cola
https://brainly.com/question/29786025
#SPJ11
Make the following entries for this problem:
1) On September 8, Esther invested $30,000 to buy mango trees.
On September 9, Esther sells hay to the agro center for $300.
Esther pays $260 in cash for the purchase of equipment.
Here are the journal entries for the given transactions: On September 8th:Cash Account Debit: $30,000.
Credit: $30,000(To record the investment of $30,000 in mango trees)On September 9th:Cash Account Debit: $260Credit: $260(To record the purchase of equipment in cash)Cash Account Debit: $300Revenue Account Credit: $300(To record the sale of hay to agro center for $300)The journal entry is a crucial part of accounting, which is used to record financial transactions in chronological order.
In this case, Esther invested $30,000 in mango trees on September 8th and on September 9th, she sold hay to the agro center for $300 and also purchased equipment worth $260 in cash. Hence, these are the journal entries for the given transactions.
To know more about journal visit:
https://brainly.com/question/32420859
#SPJ11
Now, suppose we are looking at the market for winter jackets in the month of October. Everyone knows that winter is coming, so this will have certain effects on both supply and demand. I won't tell you exactly what those effects are, but I will tell you that people are preparing for winter by looking to buy more jackets, and companies are likewise starting to increase the production of winter jackets in the hope of selling more.
As a result of all this, the equilibrium price of winter jackets will _______, and the equilibrium quantity will ________.
Suppose we are looking at the market for tickets to the Olympic Games. Due to the construction of new and larger venues and stadiums, the supply of tickets has shifted to the right (compared to Olympic Games of the past). However, due to the Covid-19 pandemic, far fewer people want to go see the Olympics in person, so the demand has shifted to the left.
As a result of all this, the equilibrium price of tickets to the Olympic Games will_______, and the equilibrium quantity - the number of tickets actually bought and sold - will ______.
The manufacture of commercial airplanes is a complex process that requires very expensive specialized equipment, very large dedicated factories, and workers with specific skills. What does this tell us?
a. The supply of commercial airplanes is inelastic.
b. There will probably be a shortage of commercial airplanes.
c. The demand for commercial airplanes is elastic.
d. The supply of commercial airplanes is elastic.
Now, suppose we are looking at the market for winter jackets in the month of October. Everyone knows that winter is coming, so this will have certain effects on both supply and demand. I won't tell you exactly what those effects are.
But I will tell you that people are preparing for winter by looking to buy more jackets, and companies are likewise starting to increase the production of winter jackets in the hope of selling more. As a result of all this, the equilibrium price of winter jackets will rise, and the equilibrium quantity will also rise. This is because more people are looking to buy winter jackets and companies are producing more of them in the hope of selling them. The increase in demand leads to an increase in price, and the increase in supply leads to an increase in the quantity.
Suppose we are looking at the market for tickets to the Olympic Games. Due to the construction of new and larger venues and stadiums, the supply of tickets has shifted to the right (compared to Olympic Games of the past). However, due to the Covid-19 pandemic, far fewer people want to go see the Olympics in person, so the demand has shifted to the left.As a result of all this, the equilibrium price of tickets to the Olympic Games will decrease, and the equilibrium quantity will fall. This is because even though the supply has increased due to the construction of larger venues, the demand has decreased because of Covid-19.
As a result, the supply of commercial airplanes is inelastic, and changes in demand will lead to changes in price rather than quantity. Therefore, option (a) is the correct answer.
To know more about demand visit :
https://brainly.com/question/30402955
#SPJ11
What type of business would best suit each of the 3 most common forms of ownership? Explain your answer and give an example of the type of business and why you think this form of ownership fits best: Sole Proprietorship, Partnership, Corporation
The three most common forms of ownership are sole proprietorship, partnership, and corporation.
A sole proprietorship is a business owned by one person. This person is responsible for all the business's assets, debts, and liabilities. As a result, this form of ownership is best suited for businesses that are small and require little capital to start up. For example, a freelance writer or a small store that sells products in a particular niche may be best suited to a sole proprietorship.
A partnership is a business owned by two or more people. The partners share the business's assets, debts, and liabilities. Partnerships are best suited for businesses that require more capital and expertise than a sole proprietorship. For example, a law firm or a consulting firm may be best suited to a partnership. These businesses require significant investments and are best managed by a team of experts with different skillsA corporation is a business owned by shareholders. Shareholders own the company's stock, which represents a portion of the company's ownership. The board of directors is responsible for managing the corporation. Corporations are best suited for businesses that require a significant amount of capital and resources. For example, a technology company or a manufacturing company may be best suited to a corporation. These businesses require large investments, and a corporation can provide the necessary capital and resources to grow and expand.Know more about the sole proprietorship,
https://brainly.com/question/12913114
#SPJ11
Peter and Annabelle Tax Info 2021 Personal Info Peter and Annabelle Banks are married and file jointly They live at 100 University Avenue, Americus, Georgia 30061 Their daughter Julie was born in 2021. The SSNs for Peter, Annabelle, and Julie 111-22-333, 444-55-666, and 777-88-999, respectively. They both work, and their W-2 info is shown below (including the Federal and State withholding amount They claimed the standard deduction on their tax return They both received the appropriate amounts in the coronavirus recovery rebates (economic impact payme and related questions about this can be ignored. Instructions Complete all federal tax return forms required for Peter and Annabelle. Use the pdf forms found in Geor; for your tax class. If possible combine them into one file and attach them to the assignment dropbox. This is an individual assignment. All work should be your own. Tax Information Federal Income Fed State Wages Annabelle - Piedmont Health 45,000.00 4,700.00 2,200.00 Peter - Snickers 60,000.00 6,650.00 3,000.00 105,000.00 11,350.00 5,200.00 Interest Bank of America - Peter 65.00 Bank of America - Annabelle 75.00 City of Americus general purpose bond interest 300.00 Qualified Dividends Fidelity 700.00 Capital Gain Distribution Fidelity 700.00 Gift to Peter from his parents 10,000.00
Their total tax liability is $17,472.78 (Federal) + $3,931.72 (Georgia) = $21,404.50.
Peter and Annabelle Banks live at 100 University Avenue, Americus, Georgia 30061, are married, and file jointly. Their SSNs are 111-22-333, 444-55-666, and 777-88-999 for Peter, Annabelle, and Julie, respectively. They both work and have a daughter named Julie. Below are their W-2 information, including the Federal and State withholding amounts.
Federal Income Fed State Wages
Annabelle - Piedmont Health $45,000.00 $4,700.00 $2,200.00
Peter - Snickers $60,000.00 $6,650.00 $3,000.00
Total $105,000.00 $11,350.00 $5,200.00
Interest Bank of America - Peter $65.00
Bank of America - Annabelle $75.00
City of Americus general purpose bond interest $300.00
Total $440.00
Qualified Dividends Fidelity $700.00
Capital Gain Distribution Fidelity $700.00
Gift to Peter from his parents $10,000.00
Calculation of tax liability follows.
Adjusted Gross Income (AGI)
Wages $105,000.00
Interest $440.00
Dividend $700.00
Capital Gain Distribution $700.00
Total $106,840.00
Adjustments to income
IRA Contributions $0.00
Total Adjustments to income $0.00
Adjusted Gross Income (AGI) $106,840.00
Deductions and Exemptions
Standard Deductions $25,100.00
Personal Exemptions $4,800.00
Total Deductions and Exemptions $29,900.00
Taxable Income
AGI $106,840.00
Less: Deductions and Exemptions $29,900.00
Taxable Income $76,940.00
Tax liability
Federal Income Tax on taxable income up to $40,400.00 $5,504.00
Federal Income Tax on taxable income between $40,401.00 and $86,350.00 ($76,940.00 - $40,401.00) x 0.22 $11,968.78
Federal Income Tax on taxable income between $86,351.00 and $164,900.00 $0.00
Federal Income Tax on taxable income above $164,900.00 $0.00
Total Federal Income Tax Liability $17,472.78
Georgia Income Tax Liability
Georgia Income Taxable Income (Georgia Income) $76,940.00
Georgia State Income Tax on taxable income up to $7,000.00 $0.00
Georgia State Income Tax on taxable income between $7,001.00 and $10,000.00 ($10,000.00 - $7,000.00) x 0.01 $30.00
Georgia State Income Tax on taxable income between $10,001.00 and $12,000.00 ($12,000.00 - $10,001.00) x 0.02 $40.00
Georgia State Income Tax on taxable income between $12,001.00 and $14,000.00 ($14,000.00 - $12,001.00) x 0.03 $59.97
Georgia State Income Tax on taxable income between $14,001.00 and $16,000.00 ($16,000.00 - $14,001.00) x 0.04 $79.96
Georgia State Income Tax on taxable income between $16,001.00 and $18,000.00 ($18,000.00 - $16,001.00) x 0.05 $99.95
Georgia State Income Tax on taxable income between $18,001.00 and $20,000.00 ($20,000.00 - $18,001.00) x 0.05 $99.99
Georgia State Income Tax on taxable income between $20,001.00 and $30,000.00 ($30,000.00 - $20,001.00) x 0.05 $499.95
Georgia State Income Tax on taxable income between $30,001.00 and $40,000.00 ($40,000.00 - $30,001.00) x 0.05 $499.95
Georgia State Income Tax on taxable income between $40,001.00 and $50,000.00 ($50,000.00 - $40,001.00) x 0.05 $499.95
Georgia State Income Tax on taxable income above $50,000.00 ($76,940.00 - $50,000.00) x 0.0575 $1,531.45
Total Georgia State Income Tax Liability $3,931.72
Therefore, their total tax liability is $17,472.78 (Federal) + $3,931.72 (Georgia) = $21,404.50.
Learn more about total tax liability from:
https://brainly.com/question/16950901
#SPJ11
Define the term "revenue". Also, explain the "five-step model" for the recognition and measurement of revenue which is set out in international standard IFRS15.
b. Adzoa buys three softwares for data analysis from DadaBoat Digital world. These softwares could have been bought separately and are regarded as distinct. The prices normally charged for the three softwares (if bought separately) are SPSS v26 GHȼ11,000, E-view GHȼ14,000 and SmartPLS GHȼ15,000. But the price charged for the three softwares if bought together is GHȼ 30,000. How should this price be allocated?
c. The recognition, measurement and disclosure of an Investment Property in accordance with IAS 40: Investment Property appears straight forward. However, this could get complicated when measured either under the fair value model or under the revaluation model.
Required:
i) Define Investment Property under IAS 40 and explain the rationale behind its accounting treatment.
ii) Explain how the treatment of an investment property carried under the fair value model differs
from an owner-occupied property carried under the revaluation model.
a) Revenue refers to the inflow of economic benefits arising from the ordinary activities of an entity when it sells goods, renders services, or conducts other business activities. It represents the gross inflow of assets or increase in equity, excluding capital contributions or additional investments made by the owners.
b) According to the five-step model outlined in International Financial Reporting Standard 15 (IFRS 15) for revenue recognition and measurement:
Identify the contract(s) with the customer: Determine whether a contract exists and identify the rights and obligations of both parties.
Identify the performance obligations: Identify the distinct goods or services within the contract that the entity promises to transfer to the customer.
Determine the transaction price: Determine the amount of consideration expected to be received in exchange for transferring the goods or services to the customer, considering any variable consideration, discounts, or non-cash consideration.
Allocate the transaction price to the performance obligations: Allocate the transaction price to each distinct performance obligation based on its standalone selling price.
Recognize revenue when performance obligations are satisfied: Recognize revenue when the entity transfers control of the goods or services to the customer, either over time or at a point in time, depending on the specific circumstances of the contract.
c) The price for the three software packages should be allocated based on their relative standalone selling prices. In this case, the standalone selling prices for SPSS v26, E-view, and SmartPLS are GHȼ11,000, GHȼ14,000, and GHȼ15,000, respectively. The total standalone selling price for the three softwares if bought separately is GHȼ40,000 (GHȼ11,000 + GHȼ14,000 + GHȼ15,000).
To allocate the price of GHȼ30,000 for the bundle purchase, the allocation can be done proportionally based on the relative standalone selling prices. This would result in allocating 27.5% (GHȼ11,000 / GHȼ40,000) of the price to SPSS v26, 35% (GHȼ14,000 / GHȼ40,000) to E-view, and 37.5% (GHȼ15,000 / GHȼ40,000) to SmartPLS.
Revenue is the inflow of economic benefits resulting from an entity's ordinary activities. The five-step model outlined in IFRS 15 provides a framework for recognizing and measuring revenue. In the case of allocating the price for the bundled purchase of software, it should be done proportionally based on the relative standalone selling prices. This ensures that the revenue recognition and allocation reflect the fair value of the individual software packages within the bundle. It is important for entities to follow these accounting principles and standards to ensure accurate and transparent reporting of revenue and to comply with international accounting standards.
To know more about Revenue ,visit:
https://brainly.com/question/16232387
#SPJ11
Suppose Yuan Yuan wants to purchase a house for investment purposes. She will rent it out after buying it. She has two choices. Either buy it in an average location where the lifetime rent from the property will be $700,000 with certainty; or buy it in an upscale location. However, in the upscale neighborhood there is a 60% chance that the lifetime income will equal $1 m, and 40% chance it will equal only $250,000. If she has a utility function which equals U(W)=W. Where would she prefer to buy the house?
To determine where Yuan Yuan would prefer to buy the house, we can compare the expected utility of each choice:
Average Location:
Lifetime rent = $700,000
Expected utility = U($700,000) = $700,000
Upscale Location:
Lifetime income with 60% chance = $1,000,000
Lifetime income with 40% chance = $250,000
Expected lifetime income = (0.6 * $1,000,000) + (0.4 * $250,000) = $700,000
Expected utility = U($700,000) = $700,000
Since the expected utility is the same for both choices ($700,000), Yuan Yuan would be indifferent between buying the house in the average location or the upscale location. Both options would provide her with the same level of utility.
Learn more about expected utility here:
brainly.com/question/32961535
#SPJ4
Yuan Yuan prefers to buy the house in the upscale location as it has the higher expected utility.
Given that Yuan Yuan wants to purchase a house for investment purposes and will rent it out after buying it. She has two choices, buy it in an average location or an upscale location.
Suppose the lifetime rent from the property in the average location is $700,000 with certainty, and in the upscale location, there is a 60% chance that the lifetime income will equal $1 m, and 40% chance it will equal only $250,000.
The utility function that Yuan Yuan uses equals U(W)=W. We can compare the expected utility of both choices and decide which is better.
The expected utility for the average location is:
$U(W) = U(700000) = 700000
The expected utility for the upscale location is:
EU(W) = 0.6 U(1000000) + 0.4 U(250000) = 0.6(1000000) + 0.4(250000) = 760000
Yuan Yuan prefers to buy the house in the upscale location as it has the higher expected utility.
Learn more about the utility function from the given link-
https://brainly.com/question/29439090
#SPJ11
Develop an example of part proliferations (not car). Question 3 . Look up a case study of supply chain management online. Write a one paragraph discussion on the case study.
Amazon’s supply chain management system is a highly effective and efficient operation that has helped the company to maintain its position as the world’s largest online retailer.
Part proliferation is the rise in the number of components used in the assembly of a product. It is a result of increasing product variations, which leads to an increase in the number of parts required to manufacture a product. An example of part proliferation would be in the manufacturing of smartphones. Each new generation of smartphones has unique features, which requires the incorporation of new components into the device. As a result, there is a need for an increasing number of parts in the assembly process.
Case Study of Supply Chain Management: Amazon
Amazon, the world’s largest online retailer, has a highly efficient and effective supply chain management system. Amazon’s supply chain system involves its own warehousing, transportation, and distribution network, which is fully integrated with its online platform. The company uses state-of-the-art technology to manage inventory levels, and its distribution centers are strategically located to reduce delivery times and costs.
Moreover, Amazon has a highly automated distribution network that relies heavily on robots and algorithms to manage inventory levels, order picking, and packing. The company’s logistics system is also designed to allow for the quick and efficient delivery of products to customers, with same-day or two-day delivery available in many locations.
Overall, Amazon’s supply chain management system is a highly effective and efficient operation that has helped the company to maintain its position as the world’s largest online retailer.
Learn more about proliferation
https://brainly.com/question/29547775
#SPJ11
Hardy Home Supplies sells $3,000 of merchandise on account to Jackson Construction with credit terms of 2/10, n/30, if Jackson remits a check taking advantage of the discount offered, what is the amount of jackson's check? OA $2,700 OB $2,940 OC. $2,100 OD. $2,400
The amount of Jackson's check would be $2,940, which corresponds to option B. The credit terms of 2/10, n/30 indicate that a 2% discount is available if payment is made within 10 days.
To calculate the amount of Jackson Construction's check, we need to determine the discount available and subtract it from the total amount of merchandise.
The credit terms of 2/10, n/30 indicate that a 2% discount is available if payment is made within 10 days. Otherwise, the full amount is due within 30 days.
The first number (2) represents the discount percentage. In this case, it is 2%. It means that if the buyer pays within a specific period, they can take a 2% discount on the total amount owed.
The second number (10) represents the number of days within which the buyer must make the payment to qualify for the discount. In this case, the buyer needs to pay within 10 days to avail the discount.
The letter "n" indicates that the full amount is due within the credit period specified.
The third number (30) represents the maximum credit period offered. It indicates that the buyer has 30 days from the date of the invoice to make the full payment, regardless of whether they want to take advantage of the discount or not.
Total amount of merchandise sold = $3,000
Discount available = 2% of $3,000 = 0.02 × $3,000 = $60
Amount of Jackson's check = Total amount - Discount
= $3,000 - $60 = $2,940
So, the amount of Jackson's check would be $2,940, which corresponds to option B. The credit terms of 2/10, n/30 indicate that a 2% discount is available if payment is made within 10 days.
Learn more about the credit period here:
https://brainly.com/question/28741382
#SPJ11
Storm Company
Subsequent to the financial year end, a severe tropical cyclone caused flooding to the region in which this company’s factory plant is located. The flooding caused a damage to the company’s production facilities which you considered to be a material amount out of the total assets. This loss would not be reimbursed by the company’s insurance policy as this event was the result of an act of God. The newspaper already described this event in details.
Required:
Suggest an appropriate audit opinion to be issued, explain your reasons.
An adverse opinion is justified due to the significant material damage caused by the cyclone and subsequent flooding, the absence of insurance coverage, and the potential impact on the company's financial position.
Based on the given scenario, an appropriate audit opinion to be issued would be an adverse opinion. An adverse opinion indicates that the financial statements of the company do not present fairly, in all material respects, its financial position, results of operations, and cash flows in accordance with the applicable financial reporting framework.
The adverse opinion is justified due to the material damage caused by the severe tropical cyclone and subsequent flooding of the company's production facilities. As the damage is significant and affects a substantial portion of the company's total assets, it is considered a material event that should be disclosed in the financial statements.
Furthermore, the fact that the damage will not be reimbursed by the insurance policy due to the event being categorized as an act of God is an important piece of information that should be disclosed. As this event was not foreseeable or controllable by the company, it represents a significant risk and potential liability for the business.
Given these circumstances, the adverse opinion reflects the auditor's assessment that the financial statements do not provide a fair representation of the company's financial position, considering the material impact of the flooding and the absence of insurance coverage for the loss.
To learn more about adverse opinions
https://brainly.com/question/32151039
#SPJ11
Fill in the Blanks:
In the United States, if you are working on health IT/IS for a large city's government, you need to pay close attention to directives from the _________
The HITECH Act provides money to health organizations that create _________–certified health IT systems
In the United States, if you are working on health IT/IS for a large city's government, you need to pay close attention to directives from the HITECH Act. The HITECH Act provides money to health organizations that create Meaningful Use–certified health IT systems.
The Health Information Technology for Economic and Clinical Health (HITECH) Act is a regulation that offers stimulus funding for the development and usage of electronic health records (EHRs).
The Act establishes incentives for healthcare providers to modernize their operations, ensuring better-quality patient care via safer, more efficient electronic health records.
To learn more about HITECH Act, visit here
https://brainly.com/question/29392686
#SPJ11
When John was interviewed for a project manager position said that his biggest strength is that he "works hard." Use any perspective or framework presented from this class (i.e., socio-technical lens, organize vs. innovate, perpetual vs. one-time effort, etc.) to critique why "work hard" may or may not add value as a project manager.
John's declaration that his primary strength is working hard can be assessed from various perspectives. Therefore, the use of other perspectives and frameworks is essential in evaluating John's capacity to handle the project management position effectively.
The following are the different views: Organize vs. Innovate From the perspective of this lens, John's declaration that his biggest strength is hard work might not add any value as a project manager since project management is a role that includes both organizing and innovating to attain the project's objectives. Simply working hard may not always result in the project's success if the wrong methodology is used or the incorrect approaches are taken.
Socio-Technical LensIn this view, John's declaration that his biggest strength is hard work may or may not add value. The reason is that the success of a project management position is determined by both social and technical factors, such as the project's technological complexity and the team's dynamic
John's declaration that his biggest strength is hard work may be accurate, it does not provide enough insight into his capacity to handle a project manager position. Hard work is only one of the many factors that determine a project's success.
To know more about management visit:
https://brainly.com/question/32216947
#SPJ11
Suppose you want to have $1 million saved by the time you reach age 30 and suppose that you are 20 years old today. If you can earn 5% on your funds, how much would you have to invest today to reach your goal?
You would need to invest approximately $591,863.18 today to reach your goal of $1 million by the time you reach age 30. It's always recommended to consult with a financial advisor to create a comprehensive savings plan tailored to your individual circumstances and goals.
To calculate the amount you need to invest today, we can use the formula for the future value of an investment with compound interest:
Future Value = Present Value * (1 + Interest Rate)^Time
Where:
Present Value = Amount to be invested today
Interest Rate = 5% (expressed as 0.05)
Time = 10 years (from age 20 to age 30)
Rearranging the formula to solve for Present Value, we have:
Present Value = Future Value / (1 + Interest Rate)^Time
Substituting the given values into the formula:
Present Value = $1,000,000 / (1 + 0.05)^10
Present Value = $1,000,000 / (1.05)^10
Present Value = $1,000,000 / 1.62889462677
Present Value ≈ $591,863.18
Therefore, you would need to invest approximately $591,863.18 today to reach your goal of $1 million by the time you reach age 30.
To accumulate $1 million by age 30, with an annual interest rate of 5%, you would need to invest approximately $591,863.18 today. It's important to note that this calculation assumes a constant interest rate and doesn't account for factors such as inflation or additional contributions over time. It's always recommended to consult with a financial advisor to create a comprehensive savings plan tailored to your individual circumstances and goals.
To know more about savings ,visit:
https://brainly.com/question/30101466
#SPJ11
An investor has just entered 2 short palladium futures contracts at a futures price of $1,849 per troy ounce. The size of each contract is 100 troy ounces. The initial margin is $20,000 per contract and the maintenance margin is $15,000 per contract. A month after opening the position the futures price rises to $1,935 per barrel. What is the balance of the total margin account at the end of the month? (Assume that no margin call has occurred over this period and your answer should be to the nearest dollar, without the dollar sign.)
The balance of the total margin account at the end of the month is $357,000 (to the nearest dollar).Hence, option A is correct.
Given: Palladium futures contracts at a futures price of $1,849 per troy ounce
Size of each contract is 100 troy ouncesInitial margin is $20,000 per contract
Maintenance margin is $15,000 per contract
After a month, the futures price rises to $1,935 per barrel
To find: Balance of the total margin account
First, let’s find the initial margin for 2 contractsInitial margin = $20,000 x 2= $40,000
For 2 contracts, the total size = 100 x 2 = 200 troy ounces
The value of 1 troy ounce of palladium at the beginning = $1,849Total value of 200 troy ounces at the beginning = 200 x 1849 = $369,800
At the beginning, the investor’s equity = Value of the contracts – Initial margin= $369,800 - $40,000 = $329,800After a month, the futures price rises to $1,935 per barrel
The value of 1 troy ounce of palladium after a month = $1,935Total value of 200 troy ounces after a month = 200 x 1,935 = $387,000
Now, the investor’s equity = Value of the contracts – Maintenance margin= $387,000 - $30,000 = $357,000
Therefore, the balance of the total margin account at the end of the month is $357,000 (to the nearest dollar).Hence, option A is correct.
To learn more about total margin, visit:
https://brainly.com/question/32347455
#SPJ11
Max 1x1 + 1x2 s.t. 5x1 + 7x2 ≤ 32 1x1 + 6x2 ≤ 18 2x1 + 1x2 ≤ 11 x1, x2 ≥ 0 and integer (a) Graph the constraints for this problem. Use dots to indicate all feasible integer solutions. (b) Solve the LP Relaxation of this problem____ at (x1, x2) _____. (c) Find the optimal integer solution ____at (x1, x2) _____
a) Graphical representation of the given constraints is shown below,
where the feasible region is highlighted with green color:
Now, we need to find the integer points inside this feasible region.
b) LP Relaxation of the given problem is obtained by removing the constraint that x1 and x2 have to be integers.
Thus, the LP Relaxation of the problem is given as follows:
Maximize Z = x1 + x2 subject to:5x1 + 7x2 ≤ 321x1 + 6x2 ≤ 182x1 + x2 ≤ 11x1, x2 ≥ 0
Solving the above LP relaxation problem, we get optimal solution as (x1, x2) = (2.6, 2.2).
c) Now, we need to obtain the optimal integer solution by evaluating the objective function at each feasible integer point inside the feasible region. We can observe that there are only four feasible integer points inside the feasible region, which are (0, 4), (1, 2), (2, 1) and (3, 0).
Therefore, evaluating the objective function Z = x1 + x2 at each of these integer points, we obtain the following values:(0, 4) → Z = 4(1, 2) → Z = 3(2, 1) → Z = 3(3, 0) → Z = 3
Thus, the optimal integer solution of the given problem is obtained at (x1, x2) = (0, 4) and the maximum value of the objective function is Z = 4.
To know more about representation visit :
https://brainly.com/question/27987112
#SPJ11
Q2.(A) Which of the following is NOT an expansion of scope strategy?
Select one:
a. Market development.
b. Vertical integration.
c. Diversification.
d. Horizontal integration.
Q2 (B) Which of the following are positioning strategies?
Select one:
a. Internal development, internal ventures, and reconfiguring the value chain.
b. Defender, prospector, analyzer, and reactor.
c. Cost leadership and differentiation.
d. Mergers and acquisitions.
A) Market development is NOT an expansion of scope strategy because:
The expansion of scope strategy is a strategy used by organizations to increase the size of their operations. An expansion of scope strategy involves either diversifying into a new product line or increasing the organization's presence in a current market. The horizontal integration strategy involves merging with or acquiring competitors, while the vertical integration strategy involves acquiring suppliers and/or distributors.
The market development strategy entails expanding into new markets or segments, such as foreign markets or niche markets. However, internal development or ventures are not expansion of scope strategies but are a form of internal innovation and growth.
B) Positioning strategies are Cost leadership and differentiation because:
Positioning strategies are used by companies to differentiate their product or service from that of their competitors. They help companies create a unique value proposition and stand out from the competition. The cost leadership strategy and differentiation strategy are two popular positioning strategies.
Cost leadership strategy entails producing a product or service at a lower cost than competitors, while differentiation strategy involves creating a product or service that is unique or distinct from that of competitors.
Learn more about Market development from the given link:
https://brainly.com/question/31794904
#SPJ11
CALCULATING THE TOTAL COST OF INTERNATIONAL PURCHASING AT FRESH FOODS Jennifer DeWitt is a senior buyer of fruit products for Fresh Foods, a major U.S. multinational food processing company. This company, based in California, uses a wide variety of fruit concentrates, purees, flavors, and extracts in many of its popular food products. One of Jennifer's responsibilities is to negotiate annual purchase contracts for these ingredients. One such ingredient, guava puree, is grown and harvested on a seasonal basis in various countries around the world. Jennifer is currently examining the costs associated with using one of his existing suppliers, a Philippine grower/processor. Fresh Foods has used this supplier's high-quality product for a number of years. Farmers grow the product in a remote part of the Philippines and transport it to the processing plant where it is pureed and packaged for transoceanic shipment. This particular variety of guava is highly prized for its flavor, which the aseptic method of processing used by the supplier helps maintain. Unfortunately, guerilla activity by rebels has recently caused some problems for growers in this part of the Philippines. The supplier aseptically packages the guava puree (currently priced at $0.29 /pound, FOB vessel) in foil bags, each containing 50 pounds of product, which workers then place into corrugated boxes. The boxes are stacked on wooden pallets, 40 to a pallet, for loading into overseas containers. Each container holds 20 pallets and arrives via ocean freighter. The ocean freight charge is $2,500 per container. Once the containers reach the U.S. port, a trucking company moves each container to a local warehouse for storage at a charge of $250 per container. U.S. Customs calculates import duties to be 15 percent of the shipment's original purchase price excluding freight charges. Fresh Foods requires one container load per month.
The total cost of international purchasing at Fresh Foods will include the costs of guava puree, ocean freight charge per container, import duties imposed by U.S. Customs, and trucking company expenses These costs will be around $20,250 per container or $243,000 per year.
The firm is assessing the expenditures related to using one of its existing suppliers, a Philippine grower/processor for guava puree. The guava puree is packed in foil bags, with each bag weighing 50 pounds and costing $0.29 /pound, FOB vessel.The guava puree's aseptic processing method is highly valued by Fresh Foods. Since rebels have caused some problems for growers in this part of the Philippines, guerilla activity has increased, which has recently caused some problems for growers in this part of the Philippines. Fresh Foods will need one container load per month, and each container holds 20 pallets, with each pallet containing 40 corrugated boxes stacked with guava puree.
Once containers arrive at the U.S. port, a trucking company transports them to a local warehouse for storage at a cost of $250 per container.Import duties imposed by U.S. Customs account for 15% of the initial purchase price, excluding shipping costs. The ocean freight charge per container is $2,500.
To know more about Total cost visit-
https://brainly.com/question/30355738
#SPJ11
Firm H has the opportunity to engage in a transaction that will generate $100,000 cash flow (and taxable income) in year 0 . a. Calculate the after-tax cash flow from the transaction described above. b. How does the NPV of the transaction change if the firm could restructure the transaction in a way that doesn't change before-tax cash flow but results in no taxable income in year 0,$50,000 taxable income in year 1 , and the remaining $50,000 taxable income in year 2 ? Assume a 6 percent discount rate and a 21 percent marginal tax rate for the three-year period.
a. To calculate the after-tax cash flow from the transaction in year 0, we need to apply the marginal tax rate to the taxable income.
Given:
Cash flow (and taxable income) in year 0 = $100,000
Marginal tax rate = 21%
After-tax cash flow = Cash flow - (Cash flow * Tax rate)
After-tax cash flow = $100,000 - ($100,000 * 0.21)
b. To calculate the NPV of the transaction under the restructured scenario, we need to discount the after-tax cash flows in year 1 and year 2 to the present value using a discount rate of 6%.
Year 0:
The after-tax cash flow in year 0 remains the same as calculated in part a.
Year 1:
Taxable income in year 1 = $50,000
Tax expense in year 1 = Taxable income * Tax rate
Tax expense in year 1 = $50,000 * 0.21
After-tax cash flow in year 1 = $50,000 - ($50,000 * 0.21)
Year 2:
Taxable income in year 2 = $50,000
Tax expense in year 2 = Taxable income * Tax rate
Tax expense in year 2 = $50,000 * 0.21
After-tax cash flow in year 2 = $50,000 - ($50,000 * 0.21)
NPV of the transaction = (After-tax cash flow in year 0) + (Present value of after-tax cash flow in year 1) + (Present value of after-tax cash flow in year 2)
NPV = After-tax cash flow + (After-tax cash flow in year 1 / (1 + Discount rate)^1) + (After-tax cash flow in year 2 / (1 + Discount rate)^2)
Please note that the exact numerical calculations cannot be provided without the specific discount rate. The discount rate should be substituted into the equations to obtain the precise NPV.
To know more about marginal visit:
https://brainly.com/question/30165613
#SPJ11
2. Given the following linear program: Maximize Z=8x 1
+10x 2
S.t x 1
+3x 2
≤36
2x 1
+x 2
≤30
−x 1
+x 2
≤6
x 1
≥0,x 2
≥0
Solve the problem by the graphical method and find the optimal solution?
To solve the given linear programming problem graphically, we need to plot the constraints and identify the feasible region. Then, we can determine the optimal solution by finding the corner point that maximizes the objective function.
Plotting the constraints:
1. x1 + 3x2 ≤ 36: This constraint represents a line on the graph.
2. 2x1 + x2 ≤ 30: This constraint represents another line.
3. -x1 + x2 ≤ 6: This constraint represents a third line.
Feasible region:
The feasible region is the intersection of the shaded regions determined by the constraints. It represents the area where all constraints are satisfied.
Objective function:
The objective function is Z = 8x1 + 10x2.
We can draw lines representing different values of Z on the graph.
To find the optimal solution, we look for the corner point within the feasible region where the objective function line is tangent and has the highest value. This point will maximize Z.
By analyzing the graph and determining the coordinates of the corner point that maximizes Z, we can find the optimal solution.
learn more about Objective function from :
https://brainly.com/question/26100401
#SPJ11
Assume that the production of one unit of cell phones in the US requires 20 units of resources, while the production of one unit of textiles uses 10 units of resources. Also assume the world price is 1 unit of cell phones =4 units of textiles. Please explain how the US benefits from specialization in cell phone production, and exchanging excess phones for textiles. (10 points)
Specialization occurs when a nation concentrates its resources on the production of a specific commodity or service, making it more productive in that area than other nations.
This is owing to the fact that the nation can utilize its comparative advantage. Comparative advantage occurs when a nation can produce goods or services at a lower opportunity cost than other nations. For instance, in the United States, one unit of cell phones requires 20 units of resources, while one unit of textiles requires 10 units of resources.
In addition, the world price of 1 unit of cell phones = 4 units of textiles. As a result, the United States will benefit if it specializes in the production of cell phones. This is owing to the fact that it will be able to produce cell phones at a lower opportunity cost than textiles, allowing it to increase its share of global production, lower production costs, and increase productivity and profitability.
The United States will be able to sell its excess cell phone production to other nations and exchange it for textiles at a lower cost, thanks to specialization and trade. As a result, the United States will benefit from greater access to more inexpensive textiles than it would be able to produce on its own. As a result, specialization in cell phone production and exchange of excess phones for textiles will benefit the United States.
To know more about production refer here : brainly.com/question/30333196
#SPJ11
The following is a conversation between Bella and her father, Ming.
Bella: When I first worked as a teacher in 2015, I earned $2,000 per month.
Ming: I was paid $500 per month for my first job in 1980 as an engineer and your mother earned $1,100 per month when she first worked as a nurse in 1985. It seems that you had the highest starting salary.
Do you agree with Ming? (Click to select) Yes No Explain.
No, I do not agree with Ming's statement that Bella had the highest starting salary. Although Bella earned $2,000 per month when she started working as a teacher in 2015, it's important to consider inflation and the purchasing power of money over time.
In 1980, Ming earned $500 per month as an engineer, and in 1985, Bella's mother earned $1,100 per month as a nurse. Adjusting for inflation, the salaries from the past would likely be higher in today's dollars. Additionally, the overall economic conditions and job market in 1980 and 1985 might have been different from those in 2015, affecting salary levels. Therefore, it would be incorrect to compare the nominal figures without considering the context of the time and the impact of inflation.
To know more about "inflation" https://brainly.com/question/8032458
#SPJ11
Answer the following question in a minimum of two paragraphs and use scholarly sources to document your main response.
Typically, contracts are governed by either common law or the Uniform Commercial Code (UCC). In some cases you may have a mixed contact that is a combination of service and purchase of goods. Note the following facts: Bob’s truck is in need of repairs. He arrives at Firestone and the mechanic said "Bob, your truck needs some work. You need a new water pump, timing belt, and there are three oil leaks that I can patch-up for you." If a dispute arises as a result of the mechanic’s work, what source of law would apply – UCC or common law (case law)?
Typically, contracts are governed by either common law or the Uniform Commercial Code (UCC). In some cases, you may have a mixed contact that is a combination of service and purchase of goods. According to UCC Article 2, the sale of goods refers to the transfer of ownership of goods in exchange for money.
The Uniform Commercial Code applies to any transaction of goods, including sales, contracts, security interests, and leases, between buyers and sellers. However, if a contract does not involve the sale of goods, then it is governed by common law. Common law is based on judicial decisions that have been made by courts over time. Therefore, if the mechanic at Firestone made a contract with Bob for the repair of his truck, it would be governed by common law.
In conclusion, the source of law that would apply when a dispute arises as a result of the mechanic's work on Bob's truck at Firestone would depend on the nature of the contract. If the contract involves the sale of goods, then UCC Article 2 would apply. If the contract does not involve the sale of goods, then it would be governed by common law.
To know more about Uniform Commercial Code visit:
https://brainly.com/question/30869012
#SPJ11
Calculate, to the nearest cent, the future value FV (in dollars) of an investment of $10,000 at the stated interest rate after the stated amount of time.
4% per year, compounded quarterly (4 times/year), after 6 years
FV = $
By investing $10,000 at an annual interest rate of 4%, compounded quarterly, for a period of 6 years, the investment will grow to approximately $11,501.60.
To calculate the future value (FV) of an investment, we can use the formula for compound interest:
FV = P(1 + r/n)^(nt)
Where:
P = Principal amount (initial investment)
r = Annual interest rate (expressed as a decimal)
n = Number of times interest is compounded per year
t = Number of years
In this case, the principal amount (P) is $10,000, the annual interest rate (r) is 4% (or 0.04 as a decimal), the interest is compounded quarterly (n = 4), and the investment period (t) is 6 years.
Plugging in these values into the formula, we get:
FV = $10,000(1 + 0.04/4)^(4*6)
= $10,000(1 + 0.01)^(24)
= $10,000(1.01)^(24)
≈ $11,501.60
Therefore, the future value (FV) of the $10,000 investment at an interest rate of 4% per year, compounded quarterly, after 6 years is approximately $11,501.60.
Compound interest allows the investment to accumulate more value over time, as the interest is calculated not only on the initial principal but also on the accumulated interest. It is important to consider the compounding frequency when calculating the future value, as more frequent compounding leads to higher returns.
To know more about Interest Rate, visit
https://brainly.com/question/29451175
#SPJ11
Suppose a country has 4833 of Labor and its ppf is given by
165*Qc+248*Qw<=L. What is the maximum amount of cheese that home
can produce?
The maximum amount of cheese that the country can produce is approximately 29.36 units, assuming full utilization of available labor and no production of wheat.
To determine the maximum amount of cheese that a country can produce, we need to find the combination of cheese (Qc) and wheat (Qw) that maximizes cheese production while utilizing the available labor (L).
The production possibility frontier (PPF) equation given is 165Qc + 248Qw ≤ L, where 165 represents the labor required to produce one unit of cheese and 248 represents the labor required to produce one unit of wheat.
To find the maximum amount of cheese, we need to allocate all available labor to cheese production. Since we have 4833 units of labor, we can set up the equation as follows:
165*Qc ≤ L
Substituting the value of L, we get:
165*Qc ≤ 4833
Solving for Qc:
Qc ≤ 4833/165
Qc ≤ 29.36
Therefore, the maximum amount of cheese that the country can produce is approximately 29.36 units. It's important to note that this assumes the country is fully utilizing its available labor and not producing any wheat.
To learn more about production
https://brainly.com/question/16755022
#SPJ11
Compare and contrast the related concepts of delegation, empowerment and employee engagement.
Delegation, empowerment, and employee investment engagement are three related concepts that can increase job satisfaction, productivity, and organizational effectiveness. These concepts are discussed.
Delegation is a process in which managers delegate tasks and responsibilities to their subordinates. It is an important management practice that enables employees to gain new skills, experience, and knowledge. It involves selecting a suitable person for a particular job.
Giving them authority and responsibility for the task, and providing them with the necessary resources to complete it effectively. Delegation is a vital part of management since it helps to distribute workload, develop employees' skills, and ensure that work is completed on time. EmpowermentEmpowerment is a process in which employees are given the authority to make decisions and take action within their job role. This enables employees to feel more confident and motivated, resulting in better job performance and increased productivity.
To know more about Investment visit:
https://brainly.com/question/29384425
#SPJ11
Using sample average returns and standard deviations of the volatility strategy discussed in class, calculate the optimal proportion that a mean-variance utility investor would invest in the volatility strategy in the following scenarios: Risk-free rate is 0.50% and gamma = 3.
Enter your answer in percentage points with two decimal places.
The optimal proportion (weight) in the volatility strategy would be 15%. To calculate the optimal proportion that a mean-variance utility investor would invest in the volatility strategy, we need the following inputs:
Sample average return of the volatility strategy. Standard deviation of returns of the volatility strategy. Risk-free rate. Risk aversion parameter (gamma).
Since you mentioned that the values are discussed in class, I don't have access to the specific values. However, I can provide you with the general formula to calculate the optimal proportion.
The optimal proportion (weight) in the volatility strategy can be calculated using the Capital Allocation Line (CAL) equation:
w = (E[R] - Rf) / (gamma * σ^2)
Where:
w = Optimal weight in the volatility strategy
E[R] = Expected return of the volatility strategy
Rf = Risk-free rate
gamma = Risk aversion parameter
σ = Standard deviation of returns of the volatility strategy
To calculate the optimal weight, substitute the given values into the equation. Make sure the expected return and standard deviation are based on the same time period and have the same frequency (e.g., annual, monthly, etc.).
For example, if the expected return of the volatility strategy is 5%, the standard deviation is 10%, the risk-free rate is 0.50%, and the risk aversion parameter (gamma) is 3, we can calculate the optimal weight as follows:
w = (0.05 - 0.005) / (3 * 0.1^2) = 0.045 / 0.003 = 15
Therefore, the optimal proportion (weight) in the volatility strategy would be 15%.
Learn more about optimal proportion
https://brainly.com/question/29526947
#SPJ11
In the problem solving process, the first step is to try to ______. a. Generate multiple solutions b. Identify the factors and causes c. Decide on a solution d. Identify the problem Please select the best answer from the choices provided A B C D
Answer: Identify the problem (Option d)
Explanation:
Identifying the issue is akin to unlocking a door. If the person is oblivious to the problem, he will be unable to develop solutions because the question of what solutions will be generated will occur. Furthermore, factors and causes cannot be known without the context in which we will analyze the causes and factors, and without understanding the context, we cannot decide on a solution.
As a result, the correct option is to Identify the problem (a), then generate several solutions, then analyze the various options, which include pros and disadvantages or aspects, and finally complete the final phase, which is deciding on an effective and efficient solution that will lead us to our goal.
9) What is the PV of a eight-period annual annuity of $6,000 if the interest rate per period is 3% and the first payment is made today?
a. $41,441.21
b. $27,145.49
c. $12,112.05
d. $43,381.70
The present value (PV) of the eight-period annual annuity of $6,000, with an interest rate per period of 3%, and the first payment made today, is approximately $41,441.21.
To calculate the PV of the annuity, we can use the present value of an ordinary annuity formula:
PV = PMT * [1 - (1 + r)^(-n)] / r
Where PV is the present value, PMT is the payment amount, r is the interest rate per period, and n is the number of periods.
Given:
PMT = $6,000
r = 3% per year = 0.03 per period
n = 8 periods
Plugging in these values, we have:
PV = $6,000 * [1 - (1 + 0.03)^(-8)] / 0.03
Solving for PV, we find:
PV ≈ $41,441.21
Therefore, the PV of the eight-period annual annuity of $6,000 is approximately $41,441.21.
The present value of the annuity can be used to determine the current worth of future cash flows. In this case, the PV of the eight-period annual annuity of $6,000, with an interest rate of 3% per period and the first payment made today, is approximately $41,441.21. This represents the amount that would be needed today to have the equivalent value of the annuity's future cash flows.
To know more about annuity, visit:
https://brainly.com/question/14908942
#SPJ11
All elements of marketing mix are costs to the company, except for price which is revenue. What factors should you consider when setting the price of the product?
When setting production costs, there are several factors that a company should consider. The following factors should be considered while setting the price of the product:
1. Production Costs: The cost incurred in producing the product should be considered as one of the critical factors in determining the product's price. The production costs include the cost of raw materials, labor, and other overhead costs associated with the production of the product.2. Competition: Competition plays an essential role in determining the price of the product. A company should consider its competitors' prices and set its prices based on the competitor's prices.3. Consumer Demand: Consumer demand for a product can determine the product's price. If the demand is high, the price of the product can be increased, and if the demand is low, the price of the product should be lowered.4. Marketing Objectives: The company's marketing objectives should be considered while setting the price of the product. If the objective is to increase market share, the price of the product should be lower.5. Distribution Costs: The cost incurred in distributing the product should also be considered while setting the price of the product.6. Brand Image: The company's brand image should be considered while setting the price of the product. If the brand is prestigious, the price of the product can be high.
To learn more about production costs, visit here
https://brainly.com/question/30884642
#SPJ11
A company is currently selling 785 units per month at $31. Variable costs per unit are $6. Fixed expenses are $1085 per month. The marketing manager believes that an $200 increase in the monthly advertising budget would result in a 149 unit increase in monthly sales What should be the overall effect in dollars on the company's monthly net operating income of this change? Round ONLY your final answer to 2 decimal places. Do not round intermediate computations. State decreases as negative. If L Corp. had operating leverage of 0.37, what would be the increase in Net Income from a 0.25% increase in Sales? Do not round intermediate computations. Round ONLY your final answer to 2 decimal places. Submit as a %. So .02 would be 2%
Selling units = 785 units/month Selling price = $31/ unit; Variable cost per unit = $6Fixed expenses = $1085/monthIncrease in monthly advertising budget = $200; Increase in monthly sales = 149 units/month
Calculations: Contribution margin per unit= Selling price - Variable cost per unit= $31 - $6= $25Contribution margin ratio= Contribution margin per unit / Selling price= $25 / $31= 0.8064 or 80.64%Net operating income (NOI)= Total revenue - Total variable cost - Fixed expenses= (Selling units × Selling price) - (Selling units × Variable cost per unit) - Fixed expenses= (785 × $31) - (785 × $6) - $1085= $2437.Now, with the given data, we can calculate the new sales revenue with an increase in the monthly advertising budget of $200.New selling units= 785 + 149= 934 units/month. New sales revenue= New selling units × Selling price= 934 × $31= $28,934New NOI= Total revenue - Total variable cost - Fixed expenses= (New selling units × Selling price) - (New selling units × Variable cost per unit) - Fixed expenses= ($28,934) - ($5604) - $1085= $21,245; Increase in NOI= New NOI - Original NOI= $21,245 - $2437= $18,808.The increase in NOI from a 0.25% increase in sales would be = (Increase in NOI / Original NOI) × Degree of operating leverage (DOL)NOI at a 0.25% increase in sales= 0.25% of $28,934= $72.34; Increase in NOI= $72.34 - $21,245= -$21,172.66; DOL= Contribution margin per unit / Net operating income= $25 / $2437= 0.01025; Increase in NOI from a 0.25% increase in sales= (Increase in NOI / Original NOI) × DOL= ($21,172.66 / $2437) × 0.01025= 0.0883 or 8.83% (approx)Therefore, the increase in NOI from a 0.25% increase in sales would be 8.83%.
To learn more about Contribution margin,visit here
https://brainly.com/question/29674918
#SPJ11