What-If AnalysisMike’s Motorcycles has enjoyed several years of business success, but recently the company has seen some indications of a slowdown in sales. The company’s owner has decided to increase the advertising budget by 10% and reduce sales prices by 4%. The following partial income statement shows the company’s results for the most recent quarter:Partial Income StatementSales $800,000Less: VC 560,000CM: 240,000Less: FC 175,000=Net Operating $65,000Assuming that the original advertising budget was $30,000 for the quarter and was included in the fixed costs, calculate Mike’s Motorcycles’ new net income or loss if the changes are made. You should assume that the variable costs will not change if Mike implements the preceding changes.Net operating Income = $?
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more