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- Let P(x) be the annual profit for a certain product, where x is the amount of money spent on advertising. (a) Interpret P(0) (b) Describe how the marginal profit changes as the amount of money spent on advertising increases. (c) Explain the economic significance of the inflection point.When selling price is constant and variable costs increases. What will be the effect to the net income? Net income increases Net income decreases Net income remains the same Net income becomes zero Group of answer choices 1 2 3 4Requirement 1. If SnowDreams cannot reduce its costs, what profit will it earn? State your answer in dollars and as a percent of assets. Will investors be happy with the profit level? Complete the following table to calculate SnowDreams' projected income. Revenue at market price Less: Total costs Operating income
- What is the unit volume increase ? What is the x contribution margin per unit ? what is the Increase in profitability?Which of the following is the indicator of the rate at which company is earning profit? Select one: a. Margin of safety b. All options are correct c. Contribution margin d. Profit volume ratio1. Which of the following is TRUE about contribution margin? Select one: A. The amount remaining after cost of goods sold has been deducted from sales revenues. B. The amount remaining fixed costs have been deducted from sales revenue. C. The amount remaining after fixed costs have been deducted from variable costs. D. The amount remaining after variable costs have been deducted from sales revenue. 2. Which of the following financial statements reports information as of a specific date? Select one: A. Statement of Changes in Equity. B. Statement of Profit or Loss and other Comprehensive Income. C. Statement of Cash Flows. D. Statement of Financial Position. 3. The following are objectives of budgeting EXCEPT: Select one: A. Compare organisational actual achievement with planned goals. B. Ensuring departments within an organisation operate as a team. C. Establishing and communicating organisational goals. D. Developing appropriate high technology information system for an…
- Which of the following option shows the rate at which company is earning profit? Select one: a. All options are correct b. Margin of safety c. Contribution margin d. Profit volume ratio1. Cost-volume-profit analysis is used for ________. analyzing the effects of changes in costs on profits analyzing the effects of changes in volume on profits determining selling price All of these choices are correct. 2. Contribution margin is the ________. difference between sales and fixed costs difference between sales and total costs difference between sales and variable costs None of these choices are correct.In the cost-volume- profit graph (above), what is represented by the point marked "B"? Question 2 options: Breakeven point Fixed expenses Operating income area Operating loss area
- In the cost-volume- profit graph (above), what is represented by the point marked "A"? Question 1 options: Breakeven point Fixed expenses Operating income area Operating loss areaWhat is PW?Calculate the sensitivity (in percent) on investment cost. No need to write the percent symbol.Calculate the sensitivity (in percent) on annual profit. No need to write the percent symbol.(a) What is the gross margin now? (b) What is the net operating income now? (c) What is the contribution margin now?
