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NEW QUESTION: 1
The 88mpany has an opportunity to promote one of its product lines by making a one-time US $7,000 expenditure. The company can choose only one of the three product lines to promote. The incremental sales revenue that would be realized from this US $7,000 promotion expenditure in each of the product lines is estimated as follows:

In order to maximize profits, the promotion expenditure should be spent on <List A>, resulting in an increase in operating income of <List B>.

A. Option D
B. Option C
C. Option A
D. Option B
Answer: A
Explanation:
Fixed costs should be ignored. Thus, the increase in sales revenue should be multiplied by the contribution margin ratio for each product line. The incremental promotion cost US $7,000) is subtracted from this amount to determine the marginal benefit of promoting each product line. Hence, Product Line 3 has an increased profit of US$1,120.

The company buys the goods in the three product lines directly from manufacturers' representatives. Each product line is directed by a manager whose salary is included in the administrative expenses. Administrative expenses are allocated to the three product lines equally because the administration is spread evenly among the three product lines.
Salaries represent payments to the workers in each product line and therefore are traceable costs of each product line. Advertising promotes the entire company rather than the individual product lines. As a result, the advertising is allocated to the three product lines in proportion to the sales revenue. Commissions are paid to the salespersons in each product line based on 2% of gross sales. Rent represents the cost of the retail store and warehouse under a lease agreement with 5 years remaining. The product lines share the retail and warehouse space, and the rent is allocated to the three product lines based on the square footage occupied by each of the product lines.

NEW QUESTION: 2
You want to add audio that has been professionally recorded to your course. What should you do to add the audio to your slides?
A. Choose Audio > Record to > Object.
B. Choose Audio > Import to > Slide.
C. Choose Audio > Import to > Object.
D. Choose Audio > Record to > Slide.
Answer: B

NEW QUESTION: 3



A. Option C
B. Option A
C. Option B
D. Option D
Answer: A

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