Sunday
November 23, 2014

Homework Help: IFSM 300

Posted by Anonymous on Sunday, October 27, 2013 at 4:55pm.

The sales department tells management that they can increase revenue by 20 percent by increasing sales 20 percent, but the production department says that to achieve that number of units, they will have to buy a new piece of equipment that will add $200,000 to the appropriate category. What happens when we enter those changes into our model? (Enter a new number in Enter Units that reflects a 20 percent increase in chairs sold. Increase Manufacturing Machinery to allow for the new purchase.) Clearly, a 20 percent increase in sales will increase revenue 20 percent, but what happens to profits?



a. Profits decrease 25 percent.
b. Profits increase 41 percent.
c. Profits decrease 41 percent.
d. Profits do not change.

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

IFSM 300 - The sales department tells management that they can increase revenue ...
IFSM 300 - 1. The sales department tells management that they can increase ...
BUSINESS - The sales department tells management that they can increase revenue ...
Principles of Business - Approximately how many people work in the: Finance ...
finance - Collins Office Supplies is considering a more liberal credit policy to...
12grade economics - suppose that your state raises its sales tax from 5 percent ...
accounting - ER Medical Supplies had sales of 2,000 units at $160 per unit last ...
Finance - ER Medical Supplies had sales of 2,000 units at $160 per unit last ...
Economics - Suppose that your state raises its sales tax from 5 percent to 6 ...
Economics - Suppose that your state raises its sales tax from 5 percent to 6 ...

Search
Members