You are the plant accountant for a company that makes a popular brand of basketball shoes. Currently, your company sells 1,000 pairs of shoes each month for $100 apiece. The variable costs are 40% of sales, and the fixed costs are $35,000/month. The company’s advertising director is asking for an increase in her marketing budget of $1,500 per month. She plans to enhance her marketing campaign in a targeted area of the West Coast. She estimates that the additional advertising will result in a 50% increase in demand. For this situation, the additional advertising costs are considered a fixed cost. What is the impact of this request on the company’s operating income? On the other hand, the production manager believes that this increase in sales could put pressure on the production line. He estimates that there will need to be a $2.00 increase in labor costs per unit.
Consider the following:
Using the projected monthly income figure calculated above, how many units would the company need to sell to meet the initial monthly income figure?
What is the break-even sales volume needed?
Summarize the results of your analysis.
Respond to the following for this assignment:
How did you calculate the original operating income and break-even point before changes?
What is the new break-even point after including the effects of the increased advertising and higher variable costs?
Compare the two break-even results, and make a recommendation on whether the company should change or not
Sample Solution .
The purpose of this quantitative research is to understand the correlation between academic performance and music. This report will explain how Howard University students use music in their everyday lives, specifically academic careers. We will reveal what kind of music HU students are listening to and why they chose to listen to it. In previous studies, it demonstrates that listening to music while performing any task significantly improves the outcome. Yet there are some ambiguities in their research. One of those are the types of music the performers listen to. In many of the research articles either the participates were given certain music, such as classical. Some test groups were not given any music at all. It was is rare in this research topic for participates to have their own choice of music. This is significant because the majority of this generation is plugged in while tuning out the world. This is a phenomena that has been going on since technology has advanced and deserves to constantly be studied due to the rapid changes. Listening to music is a form of escapism. The outside world may see wearing headphones as antisocial but some wear headphones to keep them concentrated on what they are doing. Scheufele introduces background music to chronic psychotic patients ages 19-28. The effects of background music on a job-training group for chronic psychotic patients found that background music can help trainees focus, reduce anxiety, and complete job assignments faster (Huanga; Yi-Nuo, 2011). This is important because background music has a slow beat or tempo which the majority of students would agree that is optimal for studying or doing homework. Classical music does not always have a slow beat or tempo to cause therapeutic effects on individuals. This leads one to believe that there is more to music than its tempo but also other factors like style, genre, and if the individual likes or dislikes what is being played. Scheufele’s study focused on the impact of an individual’s taste of music on their concentration rather than tempo. He concluded in his study that “when selecting background music for work environments, such as offices, factories, and therapy rooms, it is important to avoid music that workers strongly like or dislike” (Huanga; Yi-Nuo, 2011). This is noteworthy because some students can focus better while listening to various genres of music like R&B, due to the feelings they have towards the songs rather than a slow beat to gauge their concentration. Individuals cannot have a strong like/dislike the music they are listening to because it would be a distraction taking away their concentration. This study can be useful for students to help their academic performance. It can be applied inside and outside the classroom. The study will serve as a reference for students and >GET ANSWER