Jackson company reported the following for april 500

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Essentials of Marketing
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Chapter 2 / Exercise 023
Essentials of Marketing
Hair/Lamb
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13. Jackson Company reported the following for April: 500 Units of Product Sold Revenues $90,000 Variable costs $40,800 Contribution margin $49,200 Fixed costs $20,000 Operating income $29,200 Jackson’s sales manager believes that a $10,000 increase in advertising next month will result in a 10% increase in unit sales. Compute the operating income if Jackson Companyincreases spending on advertising.a.$24,120b.$34,120c.$32,120
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Essentials of Marketing
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Chapter 2 / Exercise 023
Essentials of Marketing
Hair/Lamb
Expert Verified
d.$28,200
14. The margin of safety is the difference between ________.
15. The managerial accountant reported the following: Fixed costs: $3,000 Target operating income: $1,500 Contribution margin percentage: 25% What will be the revenues neededto earn target operating income of $1,500?
16. The risk-return tradeoff across alternative cost structures can be measured as ________.
17. Which of the following statements is true of operating leverage?a.There is a higher possibility of net loss in a company with high operating leverage than a lower-leveraged firm.b.At any given level of sales, degree of operating leverage equals operating income divided by contribution margin.c.Operating leverage measures the risk-return tradeoff of variable costs across alternative cost structures.d.When the fixed costs increase, operating leverage will decrease.
18. Revenues – Cost of goods sold is the formula to compute ________.

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