Violet sales corp, reports the yearminus−end information from 2018 as follows:

sales (35,625 units)

$285,000

cost of goods sold

116,000

gross margin

169,000

operating expenses

154,000

operating income

$15,000

violet is developing the 2019 budget. in 2019 the company would like to increase selling prices by 3.5%, and as a result expects a decrease in sales volume of 14%. all other operating expenses are expected to remain constant.

assume that cost of goods sold is a variable cost and that operating expenses are a fixed cost.

should violet increase the selling price in 2019?

a. yes, because sales revenue increases for 2019.

b. yes, because gross margin increases for 2019.

c. no, because sales volume decreases for 2019.

d. no, because operating income decreases for 2019.

Refer to the payoff matrix. suppose that speedy bike and power bike are the only two bicycle manufacturing firms serving the market. both can choose large or small advertising budgets. is there a nash equilibrium solution to this game?

What is the equity method balance in the investment in lindman account at the end of 2018?

Fred smithers, a recent college graduate decided to open his own portable juice bar, smithers smoothies, to wheel around newport beach. you, a trusted friend of fred, are a business major that has also recently graduated and agreed to handle the books for a while to get some practical experience and have a favor that you can ask of fred in the future. given the following five transactions concerning the new venture, prepare the necessary journal entries for the transactions, post the journal entries to appropriate t accounts and prepare a trial balance as of the end of the month in order to answer to the necessary may 2: fred invests $12,000 of his own money to start the new company. this money was obtained from a part-time job working at a legal firm while he was in school. may 3: fred spent $5,100 cash to purchase a refrigerated trailer that he can pull behind his car and set up at the beach. under your advice, fred agrees to place the new asset under an account called "equipment." may 6: fred bought $640 of supplies on account from the flav-o-rite confectioners company. because they will last longer than a single accounting period fred agrees to record them as, "supplies" as per your suggestion. may 13: fred sat on the beach for six hours without a single sale and was feeling very down. right before he left, however, a plumber escorting his family reunion along the beach stopped by his stand and bought $800 worth of smoothies for the entire family. under your advice, fred agrees to call this cash revenue, "sales." may 15: excited about his new venture, fred withdraws $350 from the company to take his girlfriend out to dinner. what would be the balance in the cash account at the end of the period following the posting of all the transactions?