Answered

Looking for reliable answers? Westonci.ca is the ultimate Q&A platform where experts share their knowledge on various topics. Discover reliable solutions to your questions from a wide network of experts on our comprehensive Q&A platform. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.

A company currently has sales of $700,000 and a contribution margin ratio of 45%. As a result of increasing advertising expense by $8,000, the company expects to increase sales to $735,000. If this is done and these results occur, net operating income will

Sagot :

abiolataiwo2015

If this is done and these results occur, net operating income will increase by $7750.

Net operating income

Using this formula

Net operating income=(Expected Increase in sales-Current sales× Ratio-Advertising expenses)

Let plug in the formula

Net operating income = $735,000 - ($700,000 x 45%) - $8,000

Net operating income= $7,750 increase

Therefore  net operating income will increase by $7750.

Learn more about net operating income here:https://brainly.com/question/26206936

#SPJ1

Thanks for stopping by. We are committed to providing the best answers for all your questions. See you again soon. Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Find reliable answers at Westonci.ca. Visit us again for the latest updates and expert advice.