Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. a construction mpany prepared its attainable budge

A construction mpany prepared its attainable budget for 2020. COST STRUCTURE ATTAINABLE BUDGET EARNINGS 8,000,000...

70.2K

Verified Solution

Question

Accounting

image

A construction mpany prepared its attainable budget for 2020. COST STRUCTURE ATTAINABLE BUDGET EARNINGS 8,000,000 7,253,600 VARIABLE COSTS 90.67 FIXED COSTS 538,000 NET PROFIT (BEFORE TAXES) | 208,400 MARGINAL RATIO 9.33 1. If the company increases the advertisement cost of the fixed cost portion by $40,000, what earnings are required to generate the profit goal of $256,667? What is the percentage change in work quantity? (2 points) 2. The company decides to increase price by 1%, decrease the variable cost ratio by 2%, and cut $8,000 from the fixed cost portion of the budget. What earnings are required to generate the profit goal of $256,667? What is the percentage change in work quantity? (4 points)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students