The company's sales manager believes that sales in the Central geographic market could be increased by 15% if monthly advertising were increased by $25,000. Calculate the incremental net operating income.
Fixed
A fixed expense is an expense that doesn't change, regardless of the activity level. For most companies, rent expense is fixed. No matter what the company's sales volume, rent expense stays the same.
Yes normally rent is fixed expense and need to be paid even there is no production at all.
insurance
yes
Fixed
A fixed expense is an expense that doesn't change, regardless of the activity level. For most companies, rent expense is fixed. No matter what the company's sales volume, rent expense stays the same.
depending on if the expense is a recurring is whether or not it can be fixed . most expense are unseen and therefore can not be put in as a fixed cost
To the depositor, it is an income but to the bank or institution providing the fixed deposit as a product, it is an expense.
First of all capital expenditure should be estimated and after that on the basis of fixed assets purchase assumption depreciation can be calculated.
If amount of sales commission is fixed and not base on number of units sold then it is fixed expense and vice versa.
Yes normally rent is fixed expense and need to be paid even there is no production at all.
insurance
yes
yes
yes
fixed expenses do not change, variable expenses do.