Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. feather friends, inc., distributes a high-quality

Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $120 per unit. Variable...

50.1K

Verified Solution

Question

Accounting

Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $120 per unit. Variable expenses are $60.00 per unit, and fixed expenses total $160,000 per year. Its operating results for last year were as follows:

Sales $ 3,120,000
Variable expenses 1,560,000
Contribution margin 1,560,000
Fixed expenses 160,000
Net operating income $ 1,400,000

6. The president does not want to change the selling price. Instead, he wants to increase the sales commission by $2.30 per unit. He thinks that this move, combined with some increase in advertising, would increase this year's sales by 25%. How much could the president increase this year's advertising expense and still earn the same $1,400,000 net operating income as last year?

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: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

You titrate 10.0 mL of 0.30 M acetic acid with 0.10 M sodium hydroxide. a. What is...

Chemistry
Q

IN C LANGUAGE ONLY PLEASE! First Program: create branchloop.c file Content of the program Enter your name while running...

Programming
Q

Cellular respiration requires oxygen and glucose in order to create ATP By products of cel...

Biology
Q

For a purely inductive circuit having inductor of inductance 50 mH and an ac source...

Physics
Q

c Let f x 15x3 x 2 Find f 1

Basic Math
Q

Solve the following system{3x + 5y - 7z = 8 (mod 83)9y + 13z =...

Algebra
Q

Assume that Sunday is represented as day 0 Monday is 4 determine the day of...

Algebra
Q

Which of the following is a capital asset? A. Inventory held primarily for sale to...

Accounting
Q

on march 1, 2020, brandeis corporation paid $15,000 to reynolds insurance for 12 months property...

Accounting
Q

On July 1, 2014 Individual A acquires in the open market a bond of Corporation...

Accounting
Q

snackums, incorporated purchases wheat for use in its food manufacturing process. snackums, operates in a...

Accounting
Q

Data table - X period returns for he dividends and Jeriod, 2017-2019 id capital gains...

Finance