Answer:
Explanation:
Current ratio = Current assets/current liabilities
Quick ratio = Current assets-Inventories/current liabilities
Current ratio = 1,312,500/525,000 = 2.5
If the firm wants to raise funds as additional note payable without icreasing its current ratio of 2:
Current ratio = (Current assets+NP)/(Current liab.+NP)
2 = (1,312,500+NP)/(525,000+NP)
NP = 262,500; Additinal Note payable can be maximum of 262,500
Quick ratio = (1,312,500-(375,000+262,500))/787,500 = 1.19
Assume the following: (1) Desired target operating income $20,000; unit price for sales $500; variable costs per unit $300; total fixed cost $10,000. (2) We have applied the formula to calculate the contribution margin method of determining target operating income, and have arrived at a numerator amount of $30,000 (20,000 plus 10,000) and a denominator amount of $200 (500 minus 300). (3) These figures yield an answer of 150 units (30,000 divided by 200). What is the required revenue to achieve the target operating income of $20,000?
Answer:
$75,000
Explanation:
The targeted operating income is the difference between the targeted total sales and the budgeted total cost. The total cost is the sum of the fixed and variable cost. The sales and variable cost are dependent on the level of activities or number of units produced and sold.
The difference between the sales and variable cost gives the contribution margin.
Let the number of units sold be c
500c - 300c - 10,000 = 20,000
200c = 30,000
c = 150 units
Required revenue to earn target income is the product of the unit sales with the number of units sold
= $500 × 150
= $75,000
Answer:
$75,000 sales revenue
Explanation:
We solve using the target profit formula:
[tex]\frac{Fixed\:Cost + Target Profit }{Contribution \:Margin} = Units for Profit[/tex]
Where:
[tex]Sales \: Revenue - Variable \: Cost = Contribution \: Margin[/tex]
We divide the fixed cost and the target profit over the amount of contribution generate for each unit:
500 sales price - 300 variable cost = 200
Now:
[tex]\frac{10,000 + 20,000 }{200} = Units for Profit[/tex]
150 units
Last, we multiply by the sales revenue per unit:
150 units x $500 = $75,000
Assume that Amazon has a stock-option plan for top management. Each stock option represents the right to purchase a share of Amazon $1 par value common stock in the future at a price equal to the fair value of the stock at the date of the grant. Amazon has 4,700 stock options outstanding, which were granted at the beginning of 2020. The following data relate to the option grant.
Exercise price for options $40
Market price at grant date (January 1, 2020) $40
Fair value of options at grant date (January 1, 2020) $7
Service period 5 years
Required:
1. Prepare the journal entries for the first year of the stock-option plan.
Explanation:
The Journal entry is given below:-
1 January 2020 No Entry
31 December 2020 Compensation Expense Dr, 6,580
To, Paid-In-Capital 6,580
(Being the compensation expense stock-option plan is recorded)
Working Note:-
Compensation Expense
= $7 × 4,700 ÷ 5
= $7 × 940
= $6,580
A materials requisition slip showed that direct materials requested were $58,000 and indirect materials requested were $9,000. The entry to record the transfer of materials from the storeroom is
A) Work In Process Inventory 58,000
Raw Materials Inventory 58,000
B) Direct Materials 58,000
Indirect Materials 9,000
Work in Process Inventory 67,000
C) Manufacturing Overhead 67,000
Raw Materials Inventory 67,000
D) Work In Process Inventory 58,000
Manufacturing Overhead 9,000
Raw Materials Inventory 67,000
Answer:
A materials requisition slip showed that direct materials requested were $58,000 and indirect materials requested were $9,000. The entry to record the transfer of materials from the storeroom is
D) Work In Process Inventory $58,000
Manufacturing Overhead $9,000
Raw Materials Inventory $67,000
Gannon Company had the following information at December 31:
Finished goods inventory, January 1 $ 30,000
Finished goods inventory, December 31 90,000
If the cost of goods manufactured during the year amounted to $1,260,000 and annual sales were $1,650,000, the amount of gross profit for the year is
C) $450,000
Sales $1,650,000
Cost of goods sold
===============
Cost of goods manufactured $1,260,000
Add: Beginning FG inventory $30,000
Goods available for sale $1,290,000
Less : Ending FG inventory $90,000 $1,200,000
Gross profit $450,000
Explanation:
Which of the following funds has enormous growth potential, but also poses significant risks? (Select the best answer below.) A. Global fund B. International fund C. Emerging-market fund D. Country-specific fund
Answer:
C. Emerging market fund
Explanation:
Emerging market fund -
It refers to the amount of funds invested with its major assets in the economies of the emerging countries , is referred to as the emerging market fund .
These funds are in the range of the mutual funds to the exchange - traded funds .
These funds are in higher risk , as are invested in a developing country rather than the developed country .
Hence , from the given information of the question ,
The correct answer is emerging market funds .
utomobiles sold an automobile for $ 30 comma 000 on account. The cost of the automobile was $ 16 comma 660 . The sale of the automobile came with one year of free oil changes valued at $ 340 . What would be the journal entry to record the sale?
Answer:
Explanation:
Dr Accounts Receivable 30,000
Cr Sales Revenue 46,320
Cr Service revenue 340
Dr Cost of goods sold 16,660
Deciding to Buy. Dave and Diane Starr of New Orleans, Louisiana, both of whom are in their late 20s, currently are renting an unfurnished two-bedroom apartment for $1,200 per month, plus $230 for utilities and $34 for insurance. They have found a condominium they can buy for $170,000 with a 20 percent down payment and a 30-year, 6.5 percent mortgage. Principal and interest payments are estimated at $860 per month, with property taxes amounting to $150 per month and a homeowner's insurance premium of $900 per year. Closing costs are estimated at $4,200. The monthly homeowners association fee is $275, and utility costs are estimated at $240 per month. The Starrs have a combined income of $90,000 per year, with take-home pay of $5,800 per month. They are in the 25 percent tax bracket, pay $225 per month on an installment loan (ten payments left), and have $39,000 in savings and investments outside of their retirement accounts. (d) Available financial information suggests that mortgage rates might increase over the next several months. If the Starrs wait until the rates increase 1/2 of 1 percent, how much more will they spend on their monthly mortgage payment
Answer:
Total cost of house is $170,000
Total loan to be taken = 170,000 x (1 - 0.20) = $136,000
Current annual Interest rates = 6.5%, current monthly interest rate = 6.5% / 12= 0.5417%
number of monthly periods = 30 * 12 = 360
Monthly installment (payment) on loan = $860 (859.6)
If interest rate increases by 0.5% to 7%, Monthly interest rate = 7%/12 = 0.583%
using excel formula,
Monthly installment for new monthly interest rate of 0.583% =PMT(0.583%,360,-136000,0)
New Monthly payment = $904.8
Increase in monthly mortgage payment = 904.8 - 859.6
Increase in monthly mortgage payment = $45.2
They will have around $45 additionally on monthly mortgage payment if interest increase by 0.5% to 7%
A trader buys two March futures contracts on frozen orange juice. Each contract is for the delivery of 15,000 pounds. The current futures price is 136 cents per pound, the initial margin is $1,960 per contract, and the maintenance margin is $1,400 per contract. What price change would lead to a margin call
Answer:
3.73 cents
Explanation:
Margin call occurs when the account loses more than $ 560 ($ 1960 - $ 1400).
The change in price that will lead to a margin call = Y cent × 15000 pounds = $ 560
Y cents = $ 560 / 15000 = 3.73 cents
the future price must drop more than 3.73 cents from 136 cents to below 132.3 cents
Compute the present value of the pension obligation to these three employees as of December 31, 2021. Assume an 11% interest rate. 2. The company wants to have enough cash invested at December 31, 2024, to provide for all three employees. To accumulate enough cash, they will make three equal annual contributions to a fund that will earn 11% interest compounded annually
Answer:
1.
Tinkers:
PVA = $20,000 × 7.19087* = $143,817
*Present value of an ordinary annuity of $1: n = 15, i = 11% (from PVA of $1)
PV = $143,817 × 0.81162* = $116,725
*Present value of $1: n = 2, i = 11% (from PV of $1)
Evers:
PVA = $25,000 × 7.19087* = $179,772
*Present value of an ordinary annuity of $1: n = 15, i = 11% (from PVA of $1)
PV = $179,772 × 0.73119* = $131,447
*Present value of $1: n = 3, i = 11% (from PV of $1)
Chance:
PVA = $30,000 × 7.19087* = $215,726
*Present value of an ordinary annuity of $1: n = 15, i = 11% (from PVA of $1)
PV = $215,726 × 0.65873* = $142,105
*Present value of $1: n = 4, i = 11% (from PV of $1)
Answer:
The question is not completed but the complete question is in the explanation section below and the solution is attached in the pictures.
Explanation:
Three employees of the Horizon Distributing Company will receive annual pension payments from the company when they retire. The employees will receive their annual payments for as long as they live. Life expectancy for each employee is 14 years beyond retirement. Their names, the amount of their annual pension payments, and the date they will receive their first payment are shown below: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Employee Annual Payment Date of
First
Payment
Tinkers $ 27,000 12/31/24
Evers $ 32,000 12/31/25
Chance $ 37,000 12/31/26
Caro estimates that the variable costs in the Maintenance Department total $11,000, and in the Cafeteria variable costs total $17,000. Avoidable fixed costs in the Maintenance Department are $5,000. Required: If Caro outsources the Maintenance Department, what is the maximum it can pay an outside vendor without increasing total costs
Answer:
If Caro outsources only the Maintenance department, she should pay not more than $11,000, the avoidable Fixed Costs is incidental to her operations and not that of the outsource partner thus the $5,000 shouldn't be included as a payment due the Outsource Partner.
Caro decision case
Maintenance department total costs:
Variable - $11,000
Avoidable fixed costs - $5,000
Total costs (if not outsourced) = $16,000
Explanation:
Final answer:
The maximum amount Caro can pay to outsource the Maintenance Department without increasing total costs is the sum of avoidable fixed costs and variable costs, which is $16,000.
Explanation:
The question asks for the maximum amount Caro can pay an outside vendor to outsource the Maintenance Department without increasing total costs. Caro's current costs for the Maintenance Department consist of variable costs totaling $11,000 and avoidable fixed costs of $5,000. To determine the maximum amount for outsourcing, we add these costs, giving us a total of $16,000. This is the maximum that Caro can pay to an external vendor without incurring additional costs beyond what is currently being spent internally.
Kevin is a retired teacher who lives in Philadelphia and teaches tennis lessons for extra cash. At a wage of $40 per hour, he is willing to teach 7 hours per week. At $50 per hour, he is willing to teach 10 hours per week. Using the midpoint method, the elasticity of Kelvin's labor supply between the wages of $40 and $50 per hour is approximately, which means that Kelvin's supply of labor over this wage range is:_______.
Kelvin's supply of labor over this wage range is 3.80
Explanation:
This is Price elasticity supply issue, and wages / hours are independent variables.
Price elasticity of supply tests the response to the supply of a product or service following a shift in its market price. The supply of a good will increase as its prices rise according to basic economic principles. On the other hand, when its price declines, goodwill supplies decline
So, PES ( Kevin's labor) = {(10-7)/[(10+7)/2)} /{(50-40)/[(50+40)/2]}
= 24.75/6.5 = 3.80
Cedric, a brand manager, transferred from the united States to japan He dscovered that athough people in the Unted States highly vale ind to conform to group expectations. Cedric conclded that japan places more of an emphasis on
A.collectivism
B.self-control
C.ubral relativium
D.political differences
Answer: collectivism
Complete Question:
Cedric, a brand manager, transferred from the united States to japan He discovered that although people in the United States highly valued individualism, people in Japan expect individuals to conform to group expectations. Cedric concluded that Japan places more of an emphasis on:
Explanation: Collectivism values the group over individuals belonging to the group. In cultures where collectivism is the norm, individuals tend to want to conform to the group expectations. Also, it is common for individuals in collectivist societies to define themselves as belonging to a group than as individuals so groups are a way of identifying themselves.
While individualism values individuals's right and uniqueness, collectivism does not but sees value in maintaining the cohesion in a group, which in turn promotes conformity.
When ABC car wash opened its doors at 9 AM, there were already 10 cars waiting in line (first come first serve). New cars arrive at the average rate of 20 cars per hour. The car wash can wash the car at the average rate of 15 cars per hour. If a new car arrives at 10 AM, how many hours should this car expect to wait before it is washed
Answer:
The car that arrives at 10 AM will have to wait for at least 1 hour before it is washed.
Explanation:
First of all, let us lay out the important points:
at 9 AM; 10 cars were already waiting
arrival rate = 20 cars per hour
wash rate = 15 cars per hour.
New car arrives at 10 AM
From the statements above, if 20 cars arrive every hour, it can be inferred that between 9 AM to 10 AM, the number of new cars that arrive = 20 cars.
But remember that before the car was opened, 10 cars were already waiting in line, therefore the total number of cars that arrived between 9 AM and 10 AM = 20 + 10 = 30 cars.
We are also told that the rate of wash of the cars are; 15 cars every hour. Therefore between 9 AM and 10 AM which is 1 hour, 15 out of 30 cars were washed, leaving 15 more cars unwashed. To wash this 15 remaining cars, another hour will pass, so by 11 AM, the cars that arrived between 9 AM and 10 AM will be completely washed. hence the car that arrived at 10 AM, will wait till 11 AM in order to be washed, which is a wait time of 1 hour.
Final answer:
A new car arriving at the ABC car wash at 10 AM, given the existing backlog and the rates of arrival and servicing, should expect to wait about 4 hours before it is washed.
Explanation:
Calculating Waiting Time for a Car Wash
When ABC car wash opened at 9 AM, there were already 10 cars waiting. New cars arrive at an average rate of 20 cars per hour, and the car wash can handle an average rate of 15 cars per hour. For a new car arriving at 10 AM, to calculate its expected waiting time, we must consider both the initial backlog and the rate of incoming cars vs. the car wash rate.
By 10 AM, in one hour, the car wash would have serviced 15 of the initial 10 cars, clearing the initial queue and starting on cars that have arrived since opening. However, during that hour, 20 new cars have arrived, creating a backlog. This backlog continues to grow every hour since the arrival rate (20 cars/hour) is higher than the service rate (15 cars/hour).
The difference in arrival and service rates is 5 cars/hour. The car arriving at 10 AM is effectively the 20th car in line at that moment. We must calculate how long it will take to clear the queue ahead, considering the growing backlog. It requires solving the equation for when the service rate will catch up to the arriving car's position in the queue.
To find the exact waiting time:
Service rate deficit: 5 cars/hour.
Queue position of new arrival: 20th.
Hours to service 20 cars at a deficit of 5 cars/hour = 20 / 5 = 4 hours.
Thus, a car arriving at 10 AM should expect to wait 4 hours before being serviced.
Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area. The company’s planning budget for May appears below:
Puget Sound Divers
Planning Budget
For the Month Ended May 31
Budgeted diving-hours (q) 250
Revenue ($440.00q) $ 110,000
Expenses:
Wages and salaries ($11,800 + $128.00q) 43,800
Supplies ($3.00q) 750
Equipment rental ($2,100 + $22.00q) 7,600
Insurance ($4,000) 4,000
Miscellaneous ($530 + $1.48q) 900
Total expense 57,050
Net operating income $ 52,950
Required:
During May, the company’s activity was actually 240 diving-hours. Complete the following flexible budget for that level of activity. (Round your answers to nearest whole dollar.)
Answer:
Explanation:
Calculation of items needed for construction of budget:
During May, the company’s activity was actually 240 diving-hours. So all items should be calculated with 240 diving-hours instead of 250.
Revenue = Revenue per diving hour* Diving hours = 440*240 = $105,600
Wages and salaries = $11,800+$128*240 = $42,520
Supplies = $3*240 = $720
Equipment rental = $2100 + $22*240 = $7380
Miscellaneous = $530 + $1.48*240 = $885
Flexible budget
For the month ended May 31
Revenue 105,600
Less: Expenses
Wages and salaries (42,520)
Supplies (720)
Equipment rental (7380)
Miscellaneous (885)
Insurance (4000)
Total expenses 55,505
Net income 50,095
Karen Bates has owned several automobiles from her favorite brand. Therefore, when deciding to purchase a new car for her daughter, her brand loyalty made the decision easy. Consequently, she gifted her daughter the latest model of that brand. According to the functional theory of attitudes, this scenario relates to the _____.
Answer: Knowledge function of attitudes
Explanation:
Knowledge function of attitude helps with the decision making process. Knowledge helps customers make a buying decision based off of what they know about the products and brands they are buying. For example, as a consumer I am an exclusive apple product user. If apple comes out with a product, I trust their quality based off the other products I already own. Because I have the knowledge of my apple products, I can make a simple decision on any future apple products I would want
Answer:
The correct answer is letter "B": knowledge function of attitudes.
Explanation:
American psychologist Daniel Katz (1903-1998) proposed there are four (4) functions of attitudes: Adjustment Function, Ego-Defensive Function, Value-Expressive Function, and Knowledge Function.
The Knowledge Function of attitudes represents individuals' needs for having a consistent and stable source of information. It helps them perceive the world as "more understandable", therefore predictable. The absence of this type of function creates individuals to be reluctant over a certain matter.
Thus, Karen Bates's example relates the reluctant Knowledge Function of attitudes since she predictably gifted her daughter a vehicle from the brand she has always purchased from.
The real risk-free rate is 2.25%. Inflation is expected to be 2.5% this year and 4.25% during the next 2 years. Assume that the maturity risk premium is zero. What is the yield on 2-year Treasury securities
Answer:
yield on 2 year treasury = 5.63 %
Explanation:
given data
real risk-free rate = 2.25 %
Inflation rate year 1 = 2.5 %
Inflation rate year 2 = 4.25 %
solution
we get here average inflation rate is
average inflation rate = [tex]\frac{2.5+4.25}{2}[/tex] ...........1
average inflation rate = 3.38 %
so here yield on 2 year treasury
yield on 2 year treasury = real risk-free rate + average inflation rate + MRP ...............2
yield on 2 year treasury = 2.25 % + 3.38 % + 0%
yield on 2 year treasury = 5.63 %
Cindy's Car Wash has average variable costs of $2 and average total costs of $3 when it produces 100 units of output (car washes). The firm's total variable cost is A. $300. B. $200. C. $500. D. $100.
Answer:
$200
Explanation:
Total variable cost = average variable cost × quantity
$2 × 100 = $200
Variable cost is cost that varies with production.
If production increases, variable cost increases and if production reduces, variable cost falls. E.g. cost of Labour
Fixed cost is cost thay does not vary with production e.g. rent
I hope my answer helps you
Based on the per unit variable costs of Cindy's Car Wash, the firm's total variable costs are B. $200.
What are the total variable costs?Cindy's Car Wash incurs a variable cost of $2 per car wash.
If there are a 100 car washes, the total variable costs would be:
= Variable cost per wash x Number of washes
Solving gives:
= 2 x 100
= $200
Find out more on variable costs at https://brainly.com/question/5965421.
The writer of a put option _______________. agrees to sell shares at a set price if the option holder desires agrees to buy shares at a set price if the option holder desires has the right to buy shares at a set price has the right to sell shares at a set price
Answer:
agrees to buy shares at a set price if the option holder desires.
Explanation:
In the stock market a put option is the right of a buyer to buy an options contract on an underlying asset at a set price before or on a particular date.
A person will buy a put option if they forecast that the price of an underlying asset will go down. A put owner will only make profit when he sells below the purchase price.
The call option is when a person agree to sell options at a set price where the holder is willing to buy.
If a firm decides to stop its sales agents from pricing too aggressively to make sales by requiring the agent to obtain permission to reduce price below a specific threshold, and the manager only has one source of information, the sales agent, the solution would
a..Not work
b. Work in all circumstances
c. None of the above
Answer:
The correct answer is letter "A": Not work.
Explanation:
The case proposes having sales agents request managers for discount thresholds every time a salesperson is trying to give customers promotions since there is only one source of information. It will be a better idea to have a set threshold for every product offered in the store so sales agents would know the limits of prices they can offer as discounts.
Thus, the idea of requesting managers for discounts in every sale is unlikely to work.
_________ integration is where a firm uses a mix of in-house and outsourced activities for the various stages of the vertical activity chain. a. Partial c. Backward e. Full b. Tapered d. Forward
Answer:
Tapered integration
Explanation:
Tapered integration is a term in organization theory that is a mix of market exchange and vertical integration. Advantages of vertical integration include risk protection, motivation tool for market and internal division, enlargement of input channels with little capital outlays,
the use of information on internal cost to discuss contracts with market.
Its disadvantages are monitoring issues, inefficiency and minimal production.
St. Claire Manufacturing expects to produce and sell 6,000 units of Big, its only product, for $20 each. Direct material cost is $2 per unit, direct labor cost is $8 per unit, and variable manufacturing overhead is $3 per unit. Fixed manufacturing overhead is $24,000 in total. Variable selling and administrative expenses are $1 per unit, and fixed selling and administrative costs are $3,000 in total. According to generally accepted accounting principles, inventoriable cost per unit of Big would be: Group of answer choices $18.50 per unit $17.00 per unit $13.00 per unit $14.00 per unit
Answer:
According to generally accepted accounting principles, inventoriable cost per unit of Big would be $17.00
Explanation:
Absorption Costing method is suitable for external reporting purposes and thus preferred in reporting According to the generally accepted accounting principles (GAAP)
Absorption Costing Includes Both Fixed and Variable Manufacturing Overheads in Product Costings Calculations
Calculation of Inventory Cost per Unit According to Absorption Costing:
Direct material 2.00
Direct labor 8.00
Variable Manufacturing Overhead 3.00
Fixed Manufacturing Overhead ($24,000/6,000) 4.00
Inventory Cost per Unit 17.00
Zephron Music purchased inventory for $4,400 and also paid a $260 freight bill. Zephron Music returned 25% of the goods to the seller and later took a 1% purchase discount. Assume Zephron Music uses a perpetual inventory system. What is Zephron Music's final cost of the inventory that it kept? (Round your answer to the nearest whole number.)
Answer:
Cost of the inventory kept by Zephron Music is $3495
Explanation:
Zephron Music purchased inventory for $4,400 and also paid a $260 freight bill
Inventory $4660 (debit)
Trade Payable $ 4400 (credit)
Bank $260 (credit)
Recognise an Asset - Inventory and De-recognise asset - Bank
Zephron Music returned 25% of the goods to the seller, took a 1% purchase discount
Trade Payable $1212
Inventory $1165 (credit)
Discount Received $47 (credit)
Therefore Inventory Balance = $4660-1165 = $3495
Final answer:
Zephron Music’s final cost of the inventory that it kept is calculated by adding freight charges to the initial purchase cost, subtracting the cost of returned goods, and applying a purchase discount before rounding to the nearest whole number, resulting in $3,524.
Explanation:
To calculate Zephron Music’s final cost of the inventory kept after purchasing, returning a portion, and receiving a purchase discount, we follow these steps:
Start with the initial inventory cost which is $4,400.Add the freight charges of $260 to the initial cost to get the total cost before returns and discounts.Calculate 25% of the initial inventory cost to find out the cost of goods returned and subtract it from the total cost.Lastly, calculate a 1% purchase discount on the remaining cost after returns and subtract it to get the final cost of kept inventory.Performing these calculations we have:
Total cost before returns and discounts: $4,400 + $260 = $4,660.Value of returned goods: 25% of $4,400 = $1,100.Cost after returns: $4,660 - $1,100 = $3,560.1% discount on $3,560: $35.60.Final cost of inventory kept: $3,560 - $35.60 = $3,524.40 which is rounded to $3,524.Neeley Grocery has a monthly target operating income of $25,000. Variable expenses are 20% of sales and monthly fixed expenses are $15,000. What is Neeley Grocery's operating leverage factor at the target level of operating income?
Answer:
1.6
Explanation:
In this question, we use the operating leverage factor that is shown below:
Operating Leverage Factor = Contribution ÷ Operating Income
where,
Contribution = Operating income + monthly fixed expenses
= $25,000 + $15,000
= $40,000
And, the operating income is $25,000
So, the operating leverage factor is
= $40,000 ÷ $25,000
= 1.6
The operating leverage factor is 1.6
Calculation of operating leverage factor:
Operating Leverage Factor = Contribution ÷ Operating Income
Here
Contribution = Operating income + monthly fixed expenses
= $25,000 + $15,000
= $40,000
And, the operating income is $25,000
So, the operating leverage factor is
= $40,000 ÷ $25,000
= 1.6
Learn more about income here: https://brainly.com/question/17961582?referrer=searchResults
A clothing retail company is deciding whether to use a traditional marketing research project approach or dive into a CRM system approach to guide their new year’s marketing strategy. Why should it use a CRM system approach?
A clothing retail company should opt for a CRM system over a traditional marketing research approach as it provides real-time data analytics, enables effective customer segmentation, and offers scalability and flexibility to adapt to market changes.
Explanation:A clothing retail company considering whether to use a traditional marketing research project approach or implement a CRM system should lean towards the latter for several reasons. Firstly, a CRM (Customer Relationship Management) system provides real-time data and analytics which can guide more informed decisions. This system can track customer behavior, preferences, and interactions with the brand across multiple channels, providing a holistic view of the customer journey. Secondly, a CRM system enhances the ability to segment customers based on varied criteria, facilitating more targeted and personalized marketing strategies. Using detailed customer profiles, the company can tailor their communications and promotions to meet specific customer needs. Lastly, CRM systems are designed for scalability and flexibility, enabling the company to easily adapt to changes in the market or in customer behavior without the need for starting new research projects from scratch. This adaptability is crucial in today's fast-paced retail environment in which trends and consumer preferences can shift rapidly. Overall, a CRM system can offer a dynamic and comprehensive approach to crafting a marketing strategy that is responsive to customers' evolving demands.
Suppose that, historically, April has experienced rain and a temperature between 35 and 50 degrees on 20 days. Also, historically, the month of April has had a temperature between 35 and 50 degrees on 25 days. You have scheduled a golf tournament for April 12. If the temperature is between 35 and 50 degrees on that day, what will be the probability that the players will get wet
Final answer:
If the temperature on April 12 is between 35 and 50 degrees, the probability that it will rain, based on historical data, is 20/25, which simplifies to 4/5 or an 80% chance.
Explanation:
The question asks about the probability of rain given a specific temperature range. If historically April experiences rain on 20 days with temperatures between 35 and 50 degrees, and there are 25 days in April with temperatures in that range, one can assume these temperatures are a prerequisite for rain. If it is between 35 and 50 degrees on April 12, the probability that it will rain on that day can be calculated by dividing the number of rainy days within that temperature range (20 days) by the total number of days with that temperature range (25 days).
Thus, the probability that it will rain is 20/25, which simplifies to 4/5 or 0.80. Therefore, there is an 80% chance that the players will get wet during the golf tournament if the temperature is between 35 and 50 degrees.
After graduation you face a choice. One option is to work for a highly regarded consulting firm and earn a starting salary (benefits included) of $55,000. The other option is to use $12,000 you have in savings to start your own consulting firm. Assume you are earning an annual return of 5 percent on your savings. You choose to start your own consulting firm. At the end of the first year, you add up all of your expenses and revenues. Your expenses include $18,000 in rent, $1,000 in office supplies, $50,000 for office staff, $20,000 for your own salary, and $4,000 in telephone expenses. Revenues totaled $147,600. Based on the information provided, what were your total explicit costs? Your implicit costs? What was your accounting and economic profit this first year?
Answer:
(a) $93,000
(b) $55,600
(c) $54,600
(d) -$1,000
Explanation:
An explicit cost refers to the costs that are incurred to run a business such as rent, wages and materials.
Explicit costs:
= Rent + supplies + Office staff + salary + Telephone expenses
= $18,000 + $1,000 + $50,000 + $20,000 + $4,000
= $93,000
Implicit cost is also known as opportunity costs.
Implicit cost:
= (Amount of saving × Rate) + Salary from consulting firm
= ($12,000 × 0.05) + $55,000
= $600 + $55,000
= $55,600
Accounting profit = Revenues - Explicit cost
= $147,600 - $93,000
= $54,600
Economic profit = Accounting profit - Implicit costs
= $54,600 - $55,600
= -$1,000
Answer:
Explicit Costs = $ 73000 ; Implicit Costs = $ 67600
Accounting Profit = $ 74600 ; Economic Profit = $ 13000 loss
Explanation:
Explicit Costs are real cash outflow expenses, paid for hiring productive factor inputs from outside. Implicit Costs are imputed costs of entrepreneur provided unpaid productive factor inputs and opportunity cost of money & time invested in business.
Accounting Profit is excess of Total Revenue over all Explicit Costs. Economic Profit is excess of Total Revenue over Total Explicit & Implicit costs.
Explicit Cost = Rent + Office Supply + Office Staff Expense + Telephone Expense + Self Salary = 18000 + 1000 + 50000 + 4000 + 20000 = 93000 Implicit Cost = Salary sacrifised while choosing to start business + Cash Capital amount & its interest sacrifised = 55000 + [12000 + 5% of 12000] = 55000 + 12600 = 67600Accounting Profit = TR - Explicit Costs = 147600 - 93000 = 54600Economic Profit = TR - Explicit Costs - Implicit Costs = 147600 -93000 - 67600 = (-)13000 i.e LossManagement by walking around (MBWA) refers to an old strategy that results in ineffective upward communication. a practice in which executives get out of their offices and learn from others in the organization through casual face-to-face dialogue. the process used by new executives to get familiar with their new office design and layout. a communication process that should be used only when executives need to explain corporate decisions to the lower-level employees.
Answer: a practice in which executives get out of their offices and learn from others in the organization through casual face-to-face dialogue.
Explanation: Management by walking around (MBWA) refers to a practice in which executives get out of their offices and learn from others in the organization through casual face-to-face dialogue.
In this management style, executives pay casual, unplanned visits to staff in their work areas to understand their work environment, experience first hand their status reports instead of waiting for them to be delivered to their office. Management by walking around fosters a better work environment through better communication, a hands-on experience of the conditions of the workplace by managers as well as quick and effective problem solving.
Lohn Corporation is expected to pay the following dividends over the next four years: $12, $10, $9, and $4. Afterward, the company pledges to maintain a constant 6 percent growth rate in dividends forever. If the required return on the stock is 15 percent, what is the current share price
Answer:
Price of the stock today = $53.14
Explanation:
given data
dividends year D1 = $12
dividends year D2 = $10
dividends year D3 = $9
dividends year D4 = $4
constant growth rate = 6 percent
required return stock Kk = 15 percent
solution
we get here Price of the stock today that is
Price of the stock = [tex]\frac{D1}{(1+ke)^1}+\frac{D2}{(1+ke)^2}+\frac{D3}{(1+ke)^3}+\frac{D4}{(1+ke)^4}+\frac{P4}{(1+ke)^4}[/tex] .................1
here P4 = [tex]\frac{D5}{ke-g}[/tex] .............2
and where D5 = D4(1+g) .............3
so here put value in equation 1
Price of the stock today = [tex]\frac{12}{(1+0.15)^1}+\frac{10}{(1+0.15)^2}+\frac{9}{(1+0.15)^3}+\frac{4}{(1+0.15)^4}+\frac{4(1.06)}{(0.15-0.06)(1+0.15)^4}[/tex]
Price of the stock today = 53.1368
Price of the stock today = $53.14
A municipal bond has a YTM of 4.11 percent while the YTM of a comparable taxable bond is 6.16 percent. What is the tax rate that will make an investor indifferent between the municipal bond and the taxable bond
Answer:
tax-rate 32.73%
Explanation:
The municipal bonds are tax-free thus, the private corporate bond is a pre-tax yield. We should solve for thetax rate which makes the 6.16% private bond yield 4.11% after tax:
0.0611 x ( 1 - t ) = 0.0411
t = 1 - 0.0411/0.0611 = 0,32733224
Being taxed at 32.73% will make the investor indifferent between these two options.
It is now January 1, 2015; and you will need $1,000 on January 1, 2019, in 4 years. Your bank compounds interest at an 8% annual rate. How much must you deposit today to have a balance of $1,000 on January 1, 2019? The formula method for this questions is
Answer:
You need to deposit $735.03 today
Explanation:
Future Value (FV): $1,000
Rate: 8% pa
Tenor: 4 years
Present value is the amount of deposit today?
FV = PV * (1+ rate) ^ tenor
⇔ 1000 = PV *(1+8%)^4
⇒ PV = 1000/(1+8%)^4 = $735.03
Answer:
Pv = $1000 (1.08)^-4
Explanation:
Compounding is the computation of the future value of $1 invested today while discounting is the determination of the present worth of $1 in the future. Both are related by the equation
Fv = Pv ( 1 + r )^n
where Fv = Future amount
Pv = Present value
r = rate of return
n = time in years
Hence the formula required
$1000 = Pv (1 + 0.08)^4
Pv = $1000 (1.08)^-4
On January 1, 2018, Twister Enterprises, a manufacturer of a variety of transportable spin rides, issues $420,000 of 6% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. 3. If the market interest rate is 5%, the bonds will issue at $452,737. Record the bond issue on January 1, 2018, and the first two semiannual interest payments on June 30, 2018, and December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Solution:
Jan 01, 2018
Cash $452,737
bonds payable $452,737
June 30,2018
Interest expense 13,655
bonds payable 1055
cash 12600
Dec 31,2018
Interest expense 13,692
bonds 12600