Assuming there is no change in a product's price or the quantity demanded, if a business owner wants to increase her advertising expenses by $500 monthly, this would cause total costs to and the break-even quantity to multiple choice
a. increase; increase.
b. decrease; increase.
c. decrease; stay the same.
d. stay the same; increase.
e. stay the same; decrease.

a. increase; increase.

Explanation:

Their total cost will increase by 500

total cost = manufacturing cost + selling and administrative cost

the total cost of selling and administrative will increase by 500

so total cost also increase by the same amount.

Because the cost are higher, the break-even point will also increase

As the fixed cost increased by 500 the company needs to increase their sales to achieve break even

break even = fixed cost / contribution

after the new advertizing cost

break even = (fixed cost + 500) / contribution

The cost increase, so the quotient also increase.

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.

i would prefer to go with the news article for nate, its recent and updated and stores a lot of information