Consider the non-linear model:    sales = a + b * exp (c * advertising_spend).    Where a represents baseline sales, b is a scaling factor, and c is the growth rate of sales in response to advertising spend. If c = 0.03, by how much would sales increase on average for a $10,000 increase in advertising spend from an initial spend of $50,000? Additionally, consider if diminishing returns begin to take effect.     What is the percentage increase in sales for the $10,000 increase from $50,000 to $60,000?

Return on investment (ROI) could be calculated using which of the following formulas? W Multiple Choice O O X Margin * (Net operating income + Sales) O X O Margin x (Average operating assets + Sales) X Margin * (Sales - Net operating income) Type here to search X Margin × (Sales - Average operating assets) < Prev 2 of 10

Which of the following is a TRUE statement about sales mix? Select one: O A. Profits will remain constant with an increase in total monetary sales if the total sales in units remains constant. OB. Profits may decline with an increase in total monetary sales if the sales mix shifts to sell more of the high contribution margin product. O C. Profits will remain constant with a decrease in total monetary sales if the sales mix also remains constant. O D. Profits may decline with an increase in total monetary sales if the sales mix shifts to sell more of the lower contribution margin product.

Which one of the following factors would cause the gross profit % to rise? A. Increasing sales B. Increasing costs C. Increased competition D. Increased supplier discounts

A company’s comparative statements are given below. Please conduct the following analyses: a.     Horizontal analysis (trend analysis) on the income statement         b.     Vertical analysis (common size financial statement analysis) on the income statement                         Note:                   When the dollar change is positive, it indicates that the value increased and therefore the % change should be positive. Therefore, when calculating % change involving a negative baseline value, use the absolute value of the baseline number in the denominator: % change = (new value - original baseline value)/|baseline value|. Otherwise the % change will be inconsistent with the real change. For example:Let's say item A changed from -10 to +10. Item A increased by 20 and thus should give rise to a positive % change. However, % change based on formula using the original value of -10 is -200% = [10-(-10)]/(-10).Let’s look at another example. Assume item B changed from -10…

Match each term with the best definition or descriptor. NPV is __________ ( a unitless ratio, a unit of time, a dollar vallue, or a rate of return).   IRR is ___________ ( a unitless ratio, a unit of time, a dollar vallue, or a rate of return).   Profitability index is __________( a unitless ratio, a unit of time, a dollar vallue, or a rate of return).

Which of the following will not result in an increase in return on investment (ROI), assuming other factors remain the same? Multiple Choice A reduction in expenses. An increase in net operating income. An increase in operating assets. An increase in sales.

A corporation that is a single product firm is predicting that a price increase next year will cause unit sales to decrease. What effect would this price increase have on the following items for next year? A) B) C) D) Contribution Margin Ratio Increase Decrease Increase Decrease Multiple Choice Break-even Point Decrease Decrease No effect No effect

Fill in the blanks with the number that corresponds to the correct word or phrse below: 1. Deflation 2. GDP deflator 3. Consumer price index (CPI) 4. base 5. Labor statistics 6. Employment cost index 7. dollar 8. Producer price index 9. International price index 10. Consumer expenditure survey 11. Percentage change 12. indices Price are created to calculate an overall average change in relative prices over time. To convert the money spent on the market basket of goods, to an index number, economists arbitrarily choose one year to be the year, or starting point from which we measure changes in prices. The year, by definition, has an index number equal to 100. The inflation rate is not derived by subtracting the index numbers, but rather through the calculation. Index numbers have no signs or other units attached to them. The most commonly cited measure of inflation in the United States is the The Bureau of is responsible for the computation of the Consumer Price Index. is a national…

Need help