Hobby cat toy company has estimated the following amounts for its next fiscal year: if the company spends an additional $34,000 on advertising, sales volume would increase by 2,900 units. what effect will this decision have on the operating income?

total fixed expenses $833,500

sales price per unit 40

variable expenses per unit 25

a) operating income will decrease by $72,500 (b) operaing income will increase by 9,500 (c) operating income will increase by 116,000 (d) operating income will increase by $43,500

An outside manufacturer has offered to produce 60,000 daks and ship them directly to andretti's customers. if andretti company accepts this offer, the facilities that it uses to produce daks would be idle; however, fixed manufacturing overhead costs would be reduced by 75%. because the outside manufacturer would pay for all shipping costs, the variable selling expenses would be only two-thirds of their present amount. what is andretti's avoidable cost per unit that it should compare to the price quoted by the outside manufacturer?

Which of the following statements about cash basis accounting is true? a. it is more complicated than accrual basis accounting. b. the irs allows all types of corporations to use it. c. it follows gaap standards. d. it ensures the company always knows how much cash flow it has.

After successfully completing your corporate finance class, you feel the next challenge ahead is to serve on the board of directors of schenkel enterprises. unfortunately, you will be the only person voting for you. the company has 375,000 shares outstanding, and the stock currently sells for $40, if there are four seats in the current election, how much will it cost you to buy a seat?