Duration analysis is useful risk management tool that helps assess the sensitivity of Investment prices to changes in interest rates. It provides a measures and helps investors make informed choice. It assumes linear relationship between interest rates and bond prices, which may not be true, especially for variable income assets.
GAP analysis measures the difference between a financial institution's interest rate sensitive assets & liabilities. Helps to identify potential discrepancies in cash flows, enabling better risk mitigation strategies. It assumes static interest rate scenarios, it may not capture the dynamic nature of interest rate movements and their impact.
Overall, duration analysis is useful for assessing interest rate risk, but may limitations. GAP analysis helps to manage interest rate discrepancies, but it can overlook the dynamic nature of interest rate movements. Both tools provide insight into risk management, but their limitations should also be considered.
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Comparative advantage is the ability to produce: Multiple Choice more of a good than others with a given amount of resources. relatively more than any other good with a given amount of resources. a good or service at a lower opportunity cost than others. more of a good at a lower cost.
Answer:
a good or service at a lower opportunity cost than others.
Explanation:
A country has a comparative advantage in production if it produces at a lower opportunity cost when compared to other countries.
For example :
there are two countries , A and B
A produces 10 kg of rice and 5 kg of beans.
B produces 5 kg of rice and 10 kg of beans
the opportunity cost of A :
in producing rice = 5/10 = 0.5
In producing beans = 10/5 = 2
the opportunity cost of B :
in producing rice = 10/5 = 2
In producing beans = 5/10 = 0.5
A has a lower opportunity cost and a comparative advantage in the production of rice.
B has a lower opportunity cost and a comparative advantage in the production of beans.
The mineola company hires a consultant to estimate the relationship between its profit and its output. the consultant reports that the relationship is?
Since the subsequent subordinate is positive (d^2p/dQ^2 = 2 > 0), it shows that the profit function is curved up at Q = 1. This implies that pi is without a doubt at a most extreme when Q = 1.
To decide if the benefit is boosted when Q = 1, we really want to work out the primary subordinate of the benefit capability concerning Q and assess it at Q = 1.
To begin with, we should find the subsidiary of the benefit capability:
dp/dQ = d/dQ (- 10 - 6Q + 5.5Q^2 - 2Q^3 + 0.25Q^4)
Separating each term of the benefit capability:
dp/dQ = - 6 + 11Q - 6Q^2 + Q^3
Presently, we should assess dp/dQ at Q = 1:
dp/dQ (Q=1) = - 6 + 11(1) - 6(1)^2 + (1)^3
= -6 + 11 - 6 + 1
= 0
Thus, when Q = 1, the subsidiary of the benefit capability is zero (d pi/dQ = 0).
In any case, this doesn't be guaranteed to suggest that benefit is boosted at Q = 1. To decide whether it's a greatest, we really want to look at the second subsidiary of the benefit capability.
Requiring the subsequent subsidiary:
d^2p/dQ^2 = d/dQ (- 6 + 11Q - 6Q^2 + Q^3)
d^2p/dQ^2 = 11 - 12Q + 3Q^2
Presently, substitute Q = 1 into the subsequent subordinate:
d^2p/dQ^2 (Q=1) = 11 - 12(1) + 3(1)^2
= 11 - 12 + 3
= 2
Therefore, the subsequent subordinate is positive (d^2p/dQ^2 = 2 > 0), it shows that the benefit capability is curved up at Q = 1. This implies that pi is for sure at a greatest when Q = 1.
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Your question is incomplete, probably the complete question is-
The Mineola Corporation hires a consultant to estimate the relationship between its profit and its output. The consultant reports that the relationship is pi = -10 - 6Q + 5.5 Q^2 - 2Q^3 + 0.25Q^4 .
The consultant says that the firm should set Q equal to 1 to maximize profit. Is it true that d pi/dQ = 0 when Q = 1? Is pi at a maximum when Q = 1?
Which type of interest does not change over the life of a loan?
Principal interest
Fixed interest
Variable interest
Annual percentage rate
Answer:
Fixed interest
Explanation:
A fixed-rate mortgage charges a set rate of interest that does not change throughout the life of the loan. You'll know exactly how much each monthly payment will be, as well as how much it will cost you overall to pay off the loan based on that rate.
How does decreasing your credit card balance affect your income statement? (1 point)
It increases your monthly expenses, increasing the amount you spend each month.
It increases your monthly expenses, giving you more money to spend on other things.
It decreases your monthly expenses, increasing the amount you spend each month.
It decreases your monthly expenses, giving you more money to spend on other things.
The way in which decreasing your credit card balance would affect your income statement is that: D. It decreases your monthly expenses, giving you more money to spend on other things.
What is a credit card?A credit card simply refers to a small, rectangular flat card that is issued by a financial institution to its eligible customers, in order to avail them an opportunity to purchase goods and services on credit, especially based on the agreement that this amount of money would be paid back at a specific time and interest rate.
Generally speaking, a credit card balance can be defined as the total amount of money that an individual owe his or her credit card company. This ultimately implies that, a decrease in credit card balance would cause a decrease in monthly expenses, which avails the credit card holder more money to spend on other things.
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Answer: 1. a loan from one entity electronically matched to another entity without a financial institution in the middle
2. a payday loan
3. an unsecured installment loan
4. It decreases your monthly expenses, giving you more money to spend on other things.
5. Determine or estimate the current value of everything you own.
6. Their ability to repay a loan
7. your prior record of paying your bills and paying off your debts
8. your age and gender
9. You can request one online or over the phone.
10. He should contact the credit bureau that issued the credit report, the companies that issued the seven fraudulent cards, his local police, and the federal government at identitytheft.gov.
11. -the lender that provided the incorrect information
-the credit bureau that prepared the report
12. right away
13. She won a $20 billion settlement for California homeowners whose homes were inappropriately foreclosed on.
14. The longer the term, the more you will pay in interest.
15. It will cost you less money overall.
16. A store credit card generally comes with a higher interest rate.
17. You will save money if you pay the balance off quickly.
18. -Clarifying the confusing language found on credit card applications.
-Forcing lending companies to disclose interest rates and hidden fees.
19. It banned credit card companies from raising interest rates after missed payments.
20. -a fixed annual charge for the use of a credit card
-a charge if the minimum payment is not paid by the due date
21. paying off the balance before interest can accrue
22. $30
23. Determine which card has the higher interest rate and pay the extra money to that card first.
Explanation: All these answers are correct!
question if output sells for $20 per unit, what is the marginal revenue product of the fifth worker?
The marginal revenue product of the fifth worker is $20.
To determine the marginal revenue product of the fifth worker, we need to know the additional output that is produced as a result of hiring the fifth worker and the additional revenue that is generated from that output. If we assume that each worker produces the same amount of output and the total output of four workers is X, then the total output of five workers is X + Y, where Y is the additional output produced by the fifth worker.
If output sells for $20 per unit and the marginal revenue product is defined as the additional revenue generated by hiring one more worker, then the marginal revenue product of the fifth worker can be calculated as follows:
Marginal revenue product = Marginal product of labor x Marginal revenue
Assuming that the marginal product of labor is constant at one unit per worker, the marginal product of the fifth worker is one unit, which means that the total output of five workers is X + 1.
The marginal revenue generated by the additional output produced by the fifth worker is $20, which is the same as the price of the output. Therefore, the marginal revenue product of the fifth worker is:
Marginal revenue product = Marginal product of labor x Marginal revenue
= 1 x $20
= $20
So, the marginal revenue product of the fifth worker is $20.
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16) ________ and ________ are typically the most easily identifiable aspects of a company's business model.
A) Market strategy, market opportunity
B) Value proposition, revenue model
C) Value proposition, competitive environment
D) Revenue model, market strategy
B) Value proposition, revenue model are typically the most easily identifiable aspects of a company's business model.
A business model is a company's approach for generating revenue and earning a profit from its operations. It specifies how a company makes, delivers, and sells its goods or services. A good business model will demonstrate the company's uniqueness and competitive advantage over its competitors. Aspects of a company's business model: The value proposition and revenue model are typically the most easily identifiable aspects of a company's business model. A value proposition is a statement that describes a company's product or service's unique selling point. A company's revenue model refers to the way it makes money by generating revenue through its operations and sales. Hence, B) Value proposition, revenue model are typically the most easily identifiable aspects of a company's business model.
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Bart, Inc., a newly organized corporation, uses the equity method of accounting for its 30% investment in Rex Co.'s common stock. During 20X5, Rex paid dividends of $300,000 and reported earnings of $900,000. In addition: The dividends received from Rex are eligible for the 80% dividends-received deduction. All the undistributed earnings of Rex will be distributed in future years. There are no other temporary differences. Bart's 20X5 income tax rate is 30%. The enacted income tax rate after 20X5 is 25%. In Bart's December 31, 20X5 balance sheet, the deferred income tax liability should be
Answer:
The right answer is "$9,000". A further explanation is given below.
Explanation:
The given values are:
Rex paid dividends,
= $300,000
Reported earnings,
= $900,000
Investment,
= 30%
Taxable rate applicable,
= 25%
Now,
Throughout the future years, the amount of dividends taxable will be:
= \((900,000 - 300,000)\times 30 \ percent\)
= \(180,000\) ($)
Dividends received deduction will be:
= \(180,000\times 80 \ percent\)
= \(144,000\) ($)
then,
Net taxable dividend will be:
= \(180,000-144,000\)
= \(36,000\)
hence,
Deferred tax liability will be:
= \(36,000\times 25 \ percent\)
= \(9,000\) ($)
A nurse in the newborn nursery is caring for a group of newborns. Which of the following newborns requires immediate intervention?
A. A newborn who is 24 hr post-delivery and has not voided.
B. A newborn who is 18 hr post-delivery and has acrocyanosis
C. A newborn who is 24 hr post-delivery and has not passed meconium
D. A newborn who is 12 hr post-delivery and has a temperature of 37.5C (99.5F)
The correct option that requires immediate intervention is A newborn who is 24 hr post-delivery and has not passed meconium. Option C.
The passage of meconium, the dark, sticky substance formed in the fetal intestines, is an important milestone for a newborn. It typically occurs within the first 24-48 hours after birth. Delayed passage of meconium beyond this timeframe may indicate an underlying issue and requires immediate intervention.
The presence of meconium in the newborn's stool signifies the normal functioning of the gastrointestinal tract. Failure to pass meconium within the expected timeframe can be indicative of an intestinal obstruction or other conditions such as Hirschsprung's disease, which is a congenital disorder affecting the nerves in the colon.
These conditions can lead to complications such as bowel perforation, sepsis, or intestinal damage if left untreated.
The nurse should promptly notify the healthcare provider and initiate appropriate diagnostic investigations and interventions.
These may include abdominal imaging, rectal examination, or other tests to determine the cause of the delayed passage of meconium. Timely intervention is crucial to prevent potential complications and provide appropriate management for the newborn.
It's important to note that while the other options (A, B, and D) may require monitoring or further assessment, they do not present as immediate concerns requiring immediate intervention. A newborn who is 24 hours post-delivery and has not voided may be monitored for adequate hydration, but immediate intervention is not typically warranted.
Acrocyanosis, bluish discoloration of the extremities, is a common and transient finding in newborns, and a temperature of 37.5°C (99.5°F) is within the normal range for a newborn and does not necessarily indicate immediate intervention. SO Option C is correct.
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what multiplication do you do to convert currency
Explanation:
you multiply by the exchange rate.
Market Street Grocery carries a complete line of products that appeal to Hispanic customers. Market Street buys cleaning products such as Fabuloso, food products such as tortillas and tacos, and birthcards written in Spanish from its suppliers. This is an example of segmentation based on _______.
Due to the fact that the segmentation is based on products that appeal to Hispanics, this is a segmentation based on Psychographic factors.
What is psychographic segmentation?
This is the type of segmentation that is made due to the lifestyle of a group of people. This is one where the customers are broken into segments.
These segments are affected by the values, the beliefs and the social status of these people.
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Reka Rahim is employed at Damon's Deli. She has family medical coverage through the company's group medical plan. The annual cost of Reka's family coverage is $12,800. The company pays 80% of the cost. How much is deducted from her biweekly paycheck for medical insurance?
Answer:
$98.46 per biweekly payment
Explanation:
the total cost of Reka's health insurance = $12,800
her employer pays = $12,800 x 805 = $10,240
Reka must pay = $12,800 - $10,240 = $2,560
there are 52 weeks in a year, so Reka receives 52 / 2 = 26 biweekly payments
amount deducted per biweekly payment = $2,560 / 26 = $98.46
You found something on the Internet about a
topic for a paper. Which of the following are
efficient ways to use the Internet? Check all of
the boxes that apply.
Check to see if this information is reliable.
Think critically about what you found to see
if it makes sense based on your prior
knowledge.
Make sure that the Internet is the best place
to be doing research of this type.
See what your social network is up to.
Answer:
its 1 2 3 thats the answer
Explanation:
1.Check to see if this information is reliable.
2.Think critically about what you found to see if it makes sense based on your prior knowledge.
3.Make sure that the Internet is the best place to be doing research of this type.
The following are efficient ways to use the Internet to find something on the Internet about a topic for a paper.
Check to see if this information is reliable.Think critically about what you found to seeif it makes sense based on your prior knowledge.The correct options are A, B, and C.
How do you use the internet essay?In essence, the Internet has made our lives more convenient and easy. Thanks to the internet, the entire world is now at our fingertips. We cannot help but recognize its significance when we consider how it has altered the world of today. Today, it is utilized in every aspect of life.
Sources you can trust are required for reliable information. A trustworthy source will offer a "thorough, well-reasoned theory, argument, etc. based on strong evidence," says UGA Libraries. Peer-reviewed academic books and articles are examples of sources that are widely regarded as reliable.
Thus, the ideal selection options are A, B, and C.
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GAAP requires companies to use only __ for inventory reported on external financial statements.
Choose matching definition
Total costs
Period cost
Conversion costs
Inventorial product costs
GAAP requires companies to use only Inventorial product costs for inventory reported on external financial statements.
GAAP (Generally Accepted Accounting Principles) requires companies to use only inventorial product costs for inventory reported on external financial statements. Inventorial product costs include direct materials, direct labor, and overhead costs that are directly attributable to the production of the inventory.
These costs are capitalized as inventory costs until the products are sold, at which point they are recognized as cost of goods sold on the income statement. Period costs, conversion costs, and total costs are not included in the inventory valuation under GAAP.
Inventorial Product Costs include all costs directly tied to the production of a product, such as direct materials, direct labor, and manufacturing overhead. These costs are used to value inventory according to GAAP rules.
Hence, the correct answer is option D. Inventorial product costs.
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For standing bear company, sales revenue is $200,000, sales returns and allowances are $5,000, sales discounts are $3,000, and cost of goods sold is $120,000. Net sales is?.
The net sale is $72,000.
What do you mean by net sales?Net sales are the total money that a company makes from sales after deducting discounts, client refunds, and other expenses. One of the top line KPIs for product-based organizations, it is often measured across weekly, monthly, or annual accounting periods and appears on the income statement.
What's the difference between gross sales and net sales?While net sales include all costs incurred during the sales process, gross sales do not account for deductions. Net sales are a better indicator of how much money a company is making from sales.
The Gross Sales:
Sales revenue: $200,000
Cost of goods sold: $120,000
Total = $200,000 - $120,000
=$80,000
Expenses:
Sales allowances and discounts: $5,000
Sales discounts: $3,000
Total= $5,000 + $3,000
= $8,000
Therefore, net sales = Gross Sales – Returns – Allowances – Discounts
$80,000- $8,000
=$72,000
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The FHA was designed to pay off mortgage insurance for homes that were going into foreclosure.
True
False
Answer:
TRUE FHA meaning federal housing administration
A box plot is a representation of data in which we divide
the data into 4 quarters. The five key features (five-
number summary) are the minimum, lower quartile,
median, upper quartile and the maximum.
The interquartile range (IQR) is found by Q3 - Q1.
How much of the data is represented by the box?
The box in a box plot represents the interquartile range (IQR) of the data. The IQR is the range between the lower quartile (Q1) and the upper quartile (Q3). It contains the middle 50% of the data.
To determine how much of the data is represented by the box, we need to consider the IQR in relation to the entire data set. The IQR captures the spread of the central portion of the data distribution, while excluding outliers and extreme values.
Since the box represents the IQR, it contains 50% of the data. This means that half of the data points fall within the box. The remaining 50% of the data is represented by the "whiskers" or lines extending from the box, which indicate the minimum and maximum values.
Therefore, the box in a box plot represents 50% of the data.
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1 point
Which of the statements below is TRUE about filing your taxes? (Assume
that your only income comes from the salary you earn at Big Tech
Company.) *
You need to file your tax return by the end of the calendar year (typically December
31st)
If your employer takes out federal income taxes through payroll withholdings, you do
not need to file a tax return
You must file your tax return by April 15th of the following year or request an
extension by that date
You do not need to pay any income taxes until April 15th, so you should ask your
company to wait until after that date to withhold any money
Answer:
The true statements are;
You must file your tax return by April 15th of the following year or request an extension by that date
Explanation:
The due date at which tax returns are filed timely is on the 15th of April of the following year otherwise the Form 4868 should be filed on or before the 15th of April to obtain Automatic Extension of Time so as to be permitted to File U.S. Individual Income Tax Return while still having those filed tax return still being considered timely.
You must file your tax return by April 15th of the following year or request an extension by that date.
A tax is a compulsory financial charge or some other type of levy imposed on a taxpayer by a governmental organization in order to fund government spending and various public expenditures. A failure to pay in a timely manner, along with evasion of or resistance to taxation, is punishable by law.The statement that is true about filling the taxes is "You must file your tax return by April \(15th\) of the following year or request an extension by that date.''For more information:
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Citrus scents produces body sprays. Each bottle has a unit product cost of $5. 38. The company produced 1,490 bottles this month and sold 1,203 of those bottles. Total cost of goods sold was
Citrus Scents produce body sprays. Each bottle has a unit product cost of $5.38. The company produced 1,490 bottles this month and sold 1,203 of those bottles. The total cost of goods sold was: $6,472.14.
(5.38 * 1203 = 6472.14)
Product cost is the direct cost incurred in manufacturing a product. For example, a manufacturer's product costs are direct labor. raw materials. Manufacturing Materials The costs incurred in manufacturing the products sold to customers are known as product costs.
Product costs include Direct Materials: Purchased raw materials that are used directly in the manufacture of the product. For example, the metal cost to build a car is a direct material cost for car manufacturers. Product costing is more than just setting a regular price. Determining the right price for a particular product helps businesses make data-driven decisions. Knowing how much a company spends to produce a product is not enough to determine the selling price of a product.Learn more about product cost here: https://brainly.com/question/24494976
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definition of trade-offs?
Answer:
Economics is all about tradeoffs. A tradeoff is loosely defined as any situation where making one choice means losing something else, usually forgoing a benefit or opportunity. We experience tradeoffs in zero-sum situations, when a plus in one area must be a negative in anothe
Explanation:
hope its helpful for if yes mark me as brilliant
For a customer of Lush, how will their MVV translate to your experience?
For an employee of Lush, for example a shop worker – how might the companies MVV affect your working life, your daily experience and your perspective of the business?
PLEASE HELP Question 21(Multiple Choice Worth 5 points) (04.09 LC) A paid position with specific duties, tasks, and responsibilities in a particular place of work. O Career Interests O Job O Values Question 22 Multiple Choice Worth 5 points) con. PLEASE HELP
Answer:
Job
Explanation:
A job is any regular and legal activity that one does to earn money. A job is a responsibility, position, or role assigned to a worker/ employee. Each job has a job description which details what duties the employer expects the employees to perform.
A job refers to employment, either full-time or part-time. It is also a piece of work to be performed.
Which of the following is a reason that your company might not want to increase its market share?
A.
The market saturation for your product is low.
B.
Many of your company's competitors have bad reputations.
C.
Your company has a limited capacity for producing your product.
D.
The price of your product is very competitive.
Answer:
C: Your company has a limited capacity for producing your product.
Explanation:
hope this helps!
when must interest and principal payments on a Stafford Student Loan begin
Answer:
The interpretation of the issue is listed throughout the clarification section below.
Explanation:
As usual and when you get a subsidized mortgage, the economy amount to accrue, but perhaps the government will pay everything on someone's account. This seems to be the case for other education loans, individuals aren't encouraged to make additional cash receipts and cash contributions while being in education or even for 6 months after taking university or education center.
Using the following information, what is the firm's cash flow from operations? Net Income: 170 Decrease in Accounts Receivable: 25 Depreciation: 50 Increase in Inventory: 17 Decrease in Accounts Payable: 10 Decrease in Wages Payable: 16 Increase in Short Term Deferred Tax Liabilities: 37 Gain from the sale of land: 13 a. $226 b. $176 c. $152
The cash flow from operations is $152.
The formula for cash flow from operations is as follows: Cash Flow from Operations = Net Income + Depreciation + (Decrease in Accounts Receivable) + (Increase in Inventory) + (Decrease in Accounts Payable) + (Decrease in Wages Payable) - (Increase in Short Term Deferred Tax Liabilities) - (Gain from Sale of Land)
Plugging in the values from the information provided: Cash Flow from Operations = 170 + 50 + ( - 25) + (17) + (- 10) + (- 16) - (37) - (13) = $176 So the answer is (b) $176.
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Who is the group of people MOST likely to purchase a company's products?
O A.marketing mix
О в.target market
O C.primary audience
O D. advertising audience
Option B is correct.A target/goal market is a crew of customers with shared demographics who have been recognized as the most likely buyers of a company's product or service.
Why is goal market important?Having the right target market helps you decide where to find practicable purchasers who are looking for what you have to offer. If you have a target market, you know where to concentrate your advertising and marketing efforts and what to provide that is compelling and properly received.
For example, a children's toy may additionally have boys a while 9–11 as the target market and the boys' mother and father as the target audience. It may additionally also be defined as the consumer segment most likely to be influenced through an advertising campaign. The target market is also awesome from the buyer persona.
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https://brainly.com/question/20974098#SPJ1What is the return rate for brick-and-mortar stores?
A. 10%
B. 20%
C. 3%
D. 15%
The return rate for brick-and-mortar stores that one will receive is 3%. Hence, Option C is correct.
What is the return rate?A return rate is something that an individual receives in exchange or returns for something else. One can receive this return in various cases, like when someone has lent money to someone for a particular period of time.
In other words, the return rate, or rate of return, is the amount received after making any type of investment. The amount that they will receive in addition to that particular amount is the amount that gets after the calculation of the percentage of the return rate, and that percentage is fixed.
Therefore, it is the return that one has to make after the completion of the time period for which the investment has been made. Option C is correct.
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Electricity costs that were incurred by a company's production processes should be debited to:a) Utilities Expense.b) Accounts Payable.c) Cash.d) Manufacturing Overhead.e) Work-in-Process Inventory.
A company's manufacturing overhead account should be debited for electricity expenses that were spent during production processes. The correct answer is d.
The reason for this is that electricity costs incurred during a company's production processes are considered indirect costs of manufacturing, meaning they are not directly traceable to a specific product or service. Therefore, they are allocated to the Manufacturing Overhead account and then applied to the various products or services the company produces.
The manufacturing overhead account is a holding account for the real overhead expenses paid (debits) and applied to work-in-process (credits) that were really incurred. o As they are incurred, actual overhead expenses are recorded in the account. o As the jobs move through the production process, the applied overhead charges are deducted from the account.
Electricity costs incurred during production should be charged to a company's manufacturing overhead account. The correct option is d.
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True or False: The ending balance in your checkbook ledger is different from the bank statement when you have written checks that haven't yet been cashed.
Answer:
true
Explanation:
hope this helps!
Scenario 3: Buying a cell phone plan It’s time to buy a new cell phone plan, and you will be paying for this one yourself. The providers offer a lot of options, and your budget is limited. What financial information do you need? What financial decision-making strategies can you use? (Cost comparison, cost-benefit analysis, calculating future expenses, or budgeting?)
Answer:
hi bestie
cost comparison
Explanation:
A proposed project has fixed costs of $48,000 per year. The operating cash flow at 11,000 units is $79,000. a. Ignoring the effect of taxes, what is the degree of operating leverage? DOL b. If units s
Degree of Operating Leverage (DOL) Degree of operating leverage is the ratio of the percentage change in operating income to the percentage change in sales.
In other words, the degree of operating leverage determines the percentage change in operating income due to a percentage change in sales.The formula for degree of operating leverage is: DOL = (% change in operating income) / (% change in sales)To find the DOL of the given proposed project:Given fixed costs per year = $48,000Operating cash flow at 11,000 units = $79,000a. Ignoring the effect of taxes, we need to calculate the degree of operating leverage. Degree of operating leverage (DOL) can be calculated using the following formula:DOL = (% change in operating income) / (% change in sales)We don't have percentage change in operating income and percentage change in sales.
Instead, we have fixed cost, operating cash flow and units. So, let's calculate the operating income first.Operating income = Operating cash flow - Fixed costsOperating income = $79,000 - $48,000Operating income = $31,000Now, let's assume that we want to know how much the operating income will increase if there is a 1% increase in the number of units sold, then we can use the following formula:Operating income at a new level of sales = Operating income at the original level of sales x (1 + percentage change in sales)If the original level of sales is 11,000 and there is a 1% increase in sales, then the new level of sales will be 11,110.
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