The existence of inventory distinguishes a merchandising firm from a service-based one as their main distinction. Unlike service-based firms, which do not sell things to customers, retail enterprises do. This distinction must be reflected in the financial statements of the companies, including the income statements.
A company that buys products and then exchanges them, typically at a higher cost than they were bought, is known as a merchant.
A service enterprise is an organization that uses volunteers and their skills to further its social mission in a broad sense. It doesn't just recruit volunteers; it works with a volunteerism culture.
A company that buys products and then exchanges them, typically at a higher cost than they were bought, is known as a merchant.
A service enterprise is an organization that uses volunteers and their skills to further its social mission in a broad sense. It doesn't just recruit volunteers; it works with a volunteerism culture.
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the striking employees at williams restaurant supply were told that the worksite would be closed and they would not be allowed to return to work. replacement workers would be used to fill their positions. what type of management tactic was the company using? multiple choice question.
The kind of management tactic the company uses is called communication. With communication, we can solve our problems, as clearly. We can solve this problem with discussion until all the element in this employees agree and feel that what has been considered is fair to all of them.
Tactical management can be described as an appropriate course of behavior to achieve a strategic plan or objective. Tactical management contains the set of everyday operations that guide long-approach approach delivery. It may also contain danger control, everyday meetings, struggle resolution, and problem-solving. Tactics also can say as reply or steps this is taken to perform your approach. Tactical making plans is a kind of making plans that entails breaking down a lengthy-time period strategic plan into smaller and greater awesome short-time period plans. Companies and groups regularly use this form of the plan after they have lengthy-time period desires that increase in addition to 3 years.
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Which statement about holding costs, also known as carrying costs, are correct? (select all that apply.)A) Carrying costs can be negative.B) Carrying costs can be stated as a percentage of item price,C) Carrying costs can be stated as a constant.D) Carrying costs are assumed to be zero.
The correct statements about holding costs or carrying costs are:
(B) Carrying costs can be stated as a percentage of the item price.
(C) Carrying costs can be stated as a constant.
What are the carrying costs?The numerous expenses a business incurs for keeping inventory on hand are known as carrying costs.
Taxes, insurance, personnel costs, and opportunity costs are some examples of carrying costs.
You can define carrying costs as a constant.
A percentage of the item price can be used to represent carrying expenses.
Add up the costs listed above for capital, storage, labor, transportation, insurance, taxes, administration, depreciation, obsolescence, and shrinkage over a year in order to calculate inventory carrying costs.
Then multiply the result by 100 to get a percentage by dividing those carrying expenses by the overall inventory value.
The cost of an asset less accumulated depreciation is its carrying amount, sometimes referred to as its carrying value. Since it must be calculated, the carrying amount is typically excluded from the balance sheet.
Therefore, the correct statements about holding costs or carrying costs are:
(B) Carrying costs can be stated as a percentage of the item price.
(C) Carrying costs can be stated as a constant.
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when companies use a perpetual inventory system, the recording of the purchase of inventory will include a debit to purchases. true false
A perpetual inventory system is a system for tracking and recording stock levels in which every purchase and sale of stock is automatically and instantly logged.
What is a perpetual inventory system?
Perpetual inventory is an accounting method that uses computerized point-of-sale systems to continuously record inventory changes in real time, eliminating the need for physical inventory checks.
It provides a highly detailed view of inventory changes, with immediate reporting of inventory in stock, and accurately reflects the level of goods on hand.
A company makes no effort to keep detailed inventory records of products on hand in this system; rather, purchases of goods are recorded as a debit to the inventory database. In practice, the cost of goods sold includes direct labor and material costs, as well as direct factory overhead costs.
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most independent craftspeople flourished in the economic environment promoted by the new capitalist class. true false question. true false
Most independent craftspeople flourished in the economic environment promoted by the new capitalist class False.
Which scientific developments fueled the expansion of American journalism in the 1840s?The telegraph's invention in the late 1840s accelerated news reporting and dissemination; the Associated Press was established in 1849 to make use of the new technology.
What factors led to the decline of commercial capitalism in the middle of the 1800s?In the 1840s, merchant capitalists continued to play significant roles in places like New York, Philadelphia, and Boston. However, merchant capitalism was in decline overall, largely due to the fact that manufacturing offered more lucrative chances for profit.
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_________ measures management effectiveness in generating profits with its available assets by dividing the net income generated by a project by the average assets invested in the project.
Breakeven evaluation. Using a business case strategy
What is a performance that breaks even?The break-even point is the amount of revenue required to cover all of your fixed and variable expenses. Consequently, that turnover is the point at which you start to turn a profit. As long as you are below that threshold, you are losing. Assume a company has $1 million in fixed costs and a 37% gross margin. $1 million divided by 0.37 results in $2.7 million as the break-even point. In the aforementioned example, the company needs to generate $2.7 million in revenue to meet its fixed and variable expenses. The business will make money if it boosts sales. Small business owners are advised on how much product has to be sold in order to be profitable using a calculation called a breakeven analysis. It assists entrepreneurs in creating a
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deregulation or removal/reduction of government regulations to allow industries to operate businesses more freely and remove corporate restrictions leads to which drawback? g
It leads to the lack of financial-costly Deregulation, firms will be forced to compete more fiercely, especially with overseas corporations.
Deregulation, the repeal or modification of laws, or other businesses control requirements. Deregulation frequently takes the form of completely getting rid of regulations or changing them to make them less impactful. Only by legislation, the President giving an executive order, or a federal agency ceasing to enforce the rule can an industry be deregulation.
Advantages of Deregulation
Because there are fewer barriers for new enterprises to enter the market, there is more competition, which boosts economic activity.
As businesses compete with one another, increased market rivalry boosts innovation and accelerates market growth. Prices for customers decrease when more businesses engage in competition.
Companies are no longer required to use cash and resources to meet deregulation and abide by rules. They can then utilize the funds to fund research and development. Without worrying about limitations or rules governing them, businesses can operate. They are unrestricted in their ability to create new products, set their own prices, enter new markets, acquire new assets, and engage with customers.
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a company you are considering investing in has a dividend of $0.40 per share. if you have a required return of 12% and the dividend is expected to grow at 3% per year, the discounted dividend valuation model would value the stock at: question 3 options: $5.50. $4.58. $4.98. $5.89.
The company has dividend $0.40 per share. With rate of return 12% and dividend growth rate 3% per year, the value of the stock is $4.58
The dividend discount model is an approach for projecting the price of a company's stock based on the premise that its current price is equal to the sum of all future dividend payments when discounted back to their present value.
The formula for dividend discount model:
Value of stock = ed / (cce - dgr)
Where:
ed = expected dividend per share
cce = cost of capital equity
dgr = dividend growth rate
Using parameters given in the problem:
Expected dividend per share = 0.4 x (1 + 0.03) = 0.412
Value of stock = 0.412 / (0.12 - 0.03) = 4.58
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a policy designed to ensure that sellers receive a minimum price that is greater than what would be available at the market is a price .
a policy designed to ensure that sellers receive a minimum price that is greater than what would be available at the market is a price floor.
A price floor is a restriction on how low a price can be charged for a good, commodity, or service that is set by the government or another party. To be effective, a price floor needs to be greater than the equilibrium price.
The price at which economic forces like supply and demand are balanced and, in the absence of outside influences, the (equilibrium) values of economic variables will not change is known as the equilibrium price, also known as the "market price."
It is frequently described as the point at which quantity demanded and quantity supplied are equal (in a perfectly competitive market). To prevent particular prices from falling too low, governments utilize price floors.
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newson minerals is considering a project that will require the purchase of $479,000 of equipment. the equipment will be depreciated straight-line to a zero book value over the five-year life of the project after which it will be worthless. the required return is 12 percent and the tax rate is 25 percent. what is the value of the depreciation tax shield in year 4 of the project assuming no bonus depreciation is taken?
The value of the depreciation tax shield in year 4 of the project assuming no bonus depreciation is taken is $23,950.
What is a depreciation tax shield?A depreciation tax shield is a tax-saving strategy in which depreciation expense is deducted from taxable income. The amount by which depreciation protects the taxpayer from income taxes is calculated by multiplying the applicable tax rate by the amount of depreciation.
A tax shield is a reduction in taxable income achieved by claiming allowable deductions such as mortgage interest, medical expenses, charitable contributions, amortization, and depreciation.
Given,
Purchase cost = $479,000
Number of years = 5
Required return = 12%
Tax rate = 25%
Now,
Calculating the value of the depreciation tax shield,. the formula will be:
Depreciation tax shield = ( Purchase cost / Number of years ) * tax rate
Depreciation tax shield =( $479,000 / 5 ) * 25%
Depreciation tax shield = $95,800 * 25%
Depreciation tax shield = $23,950
The Depreciation tax shield is $23,950.
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If the required reserve ratio is 10 percent, currency in circulation is $1,200 billion, checkable deposits are $1,600 billion, and excess reserves total $2,500 billion, then the m1 money multiplier is.
The required reserve ratio can be calculated by using the equation as follows:
Excess reserve ratio = Excess reserve/Checkable deposit
2500/1600
=1.5625
Therefore, the excess reserve ratio is 1.5625.
The money multiplayer can be calculated by using the equation (1) as follows:
1+ currency ratio
Money multiplayer =
Excess reserve ratio + Currency ratio +Required reserve ratio
1+0.75
1.5625+0.75 +0.1
= 0.7253
Thus, the money multiplayer is 0.7253.
Bank loans or invests its extra reserves to earn greater hobby. A one-greenback increase in the monetary base reasons the cash delivery to grow by using more than one greenback. The boom within the money supply is the money multiplayer.
The cash multiplier is essential in macroeconomics because it determines the money supply, which impacts interest prices. It is also crucial in banking as it impacts financial policy and the stability of the banking region.
The money multiplier tells you the maximum amount the cash supply ought to increase based on an increase in reserves in the banking machine. The component for the cash multiplier is simply 1/r, in which r = the reserve ratio.
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grant enjoys investing in older, single-family homes with status that also offer a tax credit of as much as 20% to offset any necessary renovation expenses. what type of investment opportunity does this describe?
The type of investment opportunity does this describe is Conversion investment opportunity.
When you choose between two or more possibilities, you incur an opportunity cost, which is the cost of what you lose. Regardless of what you stand to lose by choosing, you believe that the decision will benefit you more in the long run.
Your investing decisions will always result in immediate and long-term losses or gains, according to the concept of opportunity cost. Take the decision to sell stock shares now or to keep them and sell them later as an example. It's true that an investor could sell their stock right away and lock in any gains they might have, but they would forfeit any potential future gains.
Choosing between going to work and choosing to go to a movie is a straightforward example of opportunity cost.
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which of the following would help a group achieve its goal? a. collaboration b. competition c. individual leadership d. emphasis on individualism
Collaboration would help a group achieve its goal .
How does collaboration help people reach their goals?
In order to achieve common objectives, collaboration enables organizations to bring together individuals with various experiences, knowledge, and talents. It offers a variety of advantages, such as combining talents, organizing significant initiatives, or developing new products.Why is group collaboration so crucial?
It fosters trust. Individuals naturally develop a greater sense of trust for one another as teams and departments connect. This improves morale throughout the entire company in addition to improving team productivity. Teams cannot interact without trust, and if teams cannot work together, innovation will not take place..Learn more about collaboration
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suppose the nominal exchange rate between the japanese yen and the u.s. dollar is 100 yen per dollar. further, suppose that a pound of hamburger costs $2 in the united states and 250 yen in japan. what is the real exchange rate between japan and the united states? a. 0.5 pound of japanese hamburger/pound of american hamburger b. 0.8 pound of japanese hamburger/pound of american hamburger c. 1.25 pounds of japanese hamburger/pound of american hamburger d. 2.5 pounds of japanese hamburger/pound of american hamburger e. none of the above
The actual change fee (RER) between two currencies is the nominal exchange charge (e) extended via the ratio of expenditures between the two countries, P/P*. The RER therefore is eP*/P.
What change price gadget does Japan use?In 1973, Japan moved to a floating alternate fee system. The contemporary change charge of the yen, when measured by way of the actual effective exchange rate, which roughly suggests the worldwide competitiveness of Japanese businesses, is about 30 percentage under the common charge over the nearly half of century seeing that 1973.
Why is the Japanese alternate fee so low?The yen has weakened past a hundred and forty per dollar for the first time in nearly a quarter century, typically because Japan's central bank is preserving interest charges at rock-bottom ranges whilst the Federal Reserve and different central banks are conducting outsized rate hikes.
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https://brainly.com/question/2202418#SPJ4A monopolistically competitive firm is currently producing 20 units of output. At this level of output the firm is charging a price equal to $20, has marginal revenue equal to $12, has marginal cost equal to $12, and has average total cost equal to $18. From this information we can infer that.
A monopolistically competitive firm is currently producing 20 units of output. At this level of output the firm is charging a price equal to $20, has marginal revenue equal to $12, has marginal cost equal to $12, and has average total cost equal to $18. From this information we can infer that the firm is currently maximizing its profit.
What products will the monopolistically competitive corporation offer, and at what cost?The company creates an output where marginal revenue and marginal cost are equal, and it sets its pricing in accordance with its demand curve. Any economic gains or losses will eventually be offset by entry or exit in monopolistic competition, leaving enterprises with no economic profit.
What factors does a company in monopolistic competition consider when deciding how much production to produce?Its output level that maximizes profits is chosen by the monopolistic rival. In this instance, the Authentic Chinese Pizza company will take its marginal revenues and marginal costs into account to estimate the quantity to create that will maximize profits.
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a company factored $44,000 of its accounts receivable and was charged a 1% factoring fee. the journal entry to record this transaction would include a
The journal entry to record this transaction would include a Debit to Cash of $43,650 ($44,000 - $440), a Debit to Factoring Fee Expense of $1,350, and a Credit to Account Receivable of $45,000.
Any transaction, whether or not it is related to money, can be documented by a journal entry. Transactions are recorded in an accounting journal that shows the debit and credit balances of a company. The journal entry may contain many recordings, each of which is either a debit or a credit.
According to the logic underlying a journal entry, every business transaction should be documented in at least two locations (known as double-entry accounting). A journal entry frequently has supporting documents attached, is printed, and is preserved in a binder of accounting transactions.
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due to some of the 11,000 trade regulations that specify how goods are to be made and marketed, japanese car safety rules effectively require all automobile replacement parts to be japanese. rules like these often function as multiple choice universal codes. binding requirements. trade barriers. targets for bribery. economic infrastructure.
In addition to about 11,000 other trade regulations that specify how goods are to be made and marketed, Japanese car safety rules effectively require all automobile replacement parts to be Japanese. Rules like these often function as trade barriers.
Trade barriers are authorities-induced regulations on international change. in keeping with the idea of comparative advantage, exchange barriers are adverse to the sector's financial system and decrease average economic efficiency.
TANC classifies foreign alternate limitations within 4 wide sorts: Border obstacles, Technical boundaries to change, government affect obstacles and enterprise environment barriers.
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a key change in the order delivery component of the order cycle is that more and more shippers are emphasizing both the elapsed transit time and transit time variability. true false
It's true that a major change inside the order delivery portion of the ordering process is the increasing emphasis placed by shippers on both the total transit time and the variance in that time.
How much transit time is there?Distance, transportation method, route, and season all have an affect on how quickly freight is transported. Express delivery can take as short as 1-3 days, air cargo normally takes 5-ten days, and sea shipment can take anywhere between 20 and 45 days or longer.
How is travel time calculated?When utilizing the default logic of the Premier Order Management Software, the transit time is determined as follows: A set unit shipping time + (the range between the ship-to and shipping locations/the average distance per day). The two zip codes included in the calculation's longitude and latitude are used to determine the distance.
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several years ago, cosmopolitan magazine introduced yogurt under the cosmopolitan brand name and it failed quickly. this innovation strategy is known as a
Yogurt sold under the Cosmopolitan brand name was first introduced by the magazine several years ago, but it quickly failed. Using a brand extension is referred to be an innovative approach.
Brand Extension: What is it?
When a business applies one of its well-known brand names to a new product or new product category, this is known as brand extension. Brand stretching is a term that occasionally appears. By utilizing its existing brand equity, brand extensions help businesses introduce new products.
The company relies on the brand loyalty of its current customers, who it hopes will be more open to trying new items from the same company. If it is successful, a brand extension can help a company expand its clientele, boost sales, and improve overall profit margins by helping it connect with new markets.
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price of labor is affected by the marginal product of labor
The price of labor is said to be affected by the marginal product of labor. As the marginal product of labor tends to take into account the marginal value of each additional product.
The marginal product of labor is considered to be the change in output wherein the additional labor is said to be added, such as when an additional employee is hired. So, it is quite important in order to point out that all other factors remain constant.
However, the price of labor is said to be affected by the marginal product of the labor. Thus, as the marginal product of labor tends to take into account the marginal value of the each additional product.
Hence, the marginal product of labor is a company's total output which increases when it adds a single labor unit.
The given question is incomplete, so the complete question is here-
How is the price of labor affected by the marginal product of labor?
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what happened to the dollar following the announcement by the group of five that it would be desirable for most major currencies to appreciate via the u.s. dollar?
The dollar became even stronger in foreign exchange markets due to the appreciation of the Group of Five.
An exchange market is a composition of systems, institutions, tactics, social family members or infrastructures whereby events interact in trade. even as events may additionally trade goods and offerings with the aid of barter, maximum markets rely upon dealers providing their items or services to buyers in trade for money.
A marketplace is a place in which buyers and sellers can meet to facilitate the exchange or transaction of goods and offerings. Markets may be physical like a retail outlet, or virtual like an e-store.
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on january 1, 2024, a company acquired land for $6.6 million. the company paid $1.4 million in cash and signed a 7% note requiring the company to pay the remaining $5.2 million plus interest on december 31, 2025. an interest rate of 7% properly reflects the time value of money for this type of loan agreement. what amount of interest expense, if any, would the company record on december 31, 2024 (one year later)? multiple choice $182,000 $364,000 $0 $728,000
The interest expense that the company would record on december 31, 2024 (one year later) is $364.000. Therefore, the answer is B (or the second multiple choice answer).
What is interest expense?It is the cost incurred by an entity for borrowed funds. Interest expense is a non operating expense shown on the income statement. It represents interest payable on any borrowings - bonds, loans, convertible debt or lines of credit. It is essentially calculated as the interest rate times the outstanding principal amount of the debt.
How to calculate the interest expense that the company would record?
The land original cost price is $6.6 million ($1.4 million as down payment in cash, and $5.2 million is payable after 2 years with 7% interest)
The interest payment will be recognized as finance cost
Interest cost at december 31, 2024 (one year later) would be
= $5.200.000 * 7% * 1 year
= $364.000
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when apple first introduced the iphone, some consumers were willing to pay the premium $599 price tag. what pricing strategy was apple using?
Some customers were prepared to pay the $599 price tag when Apple first released the iPhone. Apple employed a Price Skimming tactic and eventually reduced the price.
Price skimming: what is it?Skimming is a pricing technique that involves setting initial product prices high and then lowering them as competitors enter the market. Skim pricing is the reverse of penetration pricing, which sets low initial rates for newly launched products in an effort to attract a large consumer base.
During the first launch phase, electronic products, like the Apple iPhone, frequently employ a price-skimming technique. After rival goods, like as the Samsung Galaxy, are introduced by competitors, the price of the product drops to maintain its competitive advantage.
What is price skimming's key advantage?Price skimming generates greater initial sales figures to pay R&D expenses. By holding onto interest for a longer period of time, you may see better returns on your investment. At each price point, you can segment your consumer base using various marketing techniques.
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one way in which a homeowner can set aside funds for future real estate taxes and property insurance premiums is to make regular payments into
One way in which a homeowner can set aside funds for future real estate taxes and property insurance premiums is to make regular payments into an impound account set up by the lender.
Your mortgage lender creates an escrow account, often known as an impound account depending on where you live, to cover specific property-related costs.
An amount from your monthly mortgage payment is used to fund the account. Because you send money through your lender or servicer each month rather than having to pay a sizable bill once or twice a year, an escrow account makes it easier for you to cover these costs.
To ensure that the bill is paid, many lenders demand that you pay your taxes and insurance through escrow. The escrow account will be handled by your mortgage servicer, who will also pay these bills on your behalf. Escrow accounts can occasionally be mandated by law.
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chris used the va guaranteed loan program to purchase a home five years ago. he now wants to sell that house and buy a new one. is chris allowed to use the va loan program a second time?
Yes, but Chris will have to make an application to have his eligibility reinstated after the VA loan is repaid with the sale of the house.
What is a VA loan?An American mortgage loan with the Department of Veterans Affairs' guarantee is known as a VA loan. The program is available to American veterans, active duty service members, reservists, and certain surviving spouses. It can be used to buy manufactured homes, single-family homes, condominiums, multi-unit buildings, and new construction. The VA does not originate loans; instead, it establishes eligibility criteria, specifies minimal standards and requirements for mortgage offers, and provides financial guarantees for loans that meet program requirements. The main goals of the VA home loan program are to provide qualified veterans with mortgage financing and to assist them in making no-down payment real estate purchases. A competent lender may grant the loan.
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a deli sells 640 sandwiches each day when the price is $8.00. a market survey determines that for every $0.10 decrease in price, 40 more sandwiches will be sold. write the revenue function and determine the price that should be charged in order to maximize the revenue.
The price that should be charged in order to maximize the revenue is 5.6
Let x be the number of $0.10 reduction in price
Then the number of sandwiches sold will be 640+20x
The price per sandwich is 8-0.10x
So we find the domain of the price function
P ≥ 0
8-0.10x ≥ 0
x ≤ 8/0.10
x ≤ 80
Revenue function becomes
R(x) = (640+20x)(8-0.10x)
R(x) = 5120 +160x - 64x -2x²
R(x) = 5120 +96x -2x²
Now maximize the Revenue we have
R'(x) = 96 - 4x = 0
x = 96/4 = 24
x = 24
P = 8 -0.10(24) = 8 - 2.4 = 5.6
Hence in order to maximize the revenue should be the price should be $5.6
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if jack were to have shared the secret recipes with friends during his ownership of the restaurant, could he still claim that they are trade secrets?
No, once the secret recipes are divulged to a third party, it is no longer a trade secret. Hence, the correct answer is Option D.
Since the recipe is divulged, it can't be a trade secret. Assuming that Sophia has invented the recipes during the course of her duty and uses the resources of the restaurant, Jack (strictly speaking the restaurant) becomes the owner of the trade secret. Hence Jack would own any intellectual property rights in the recipes since it was at his restaurant. If there is trade secret protection for the recipes, the protection would last forever, as long as the recipes are not revealed to others.
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the marketing manager would like to introduce sales commissions as an incentive for the sales staff. the marketing manager has proposed a commission of $11 per unit. in exchange, the sales staff would accept a decrease in their salaries of $65,000 per month. (this is the company's savings for the entire sales staff.) the marketing manager predicts that introducing this sales incentive would increase monthly sales by 300 units. what should be the overall effect on the company's monthly net operating income of this change?
The marketing manager has proposed a commission of $11 per unit. in exchange, The overall effect on the company's monthly net operating income of this change is $40,960.
New contribution margin ($154 - $11)=143
New unit monthly sales (9,800 + 320)=10,120
New total contribution margin (10,120 units * 143 per unit)= 1,447,160
Present total contribution margin (9,800 units * 154 per unit)=1,509,200
Changes in total contribution margin=(62,040)
Plus Savings in sales person's salaries= 103,000
Change in net operating income $40,960.
Marketing is the activity, set of institutions, and processes that create, communicate, deliver and exchange services of value to customers, customers, partners, and society as a whole. In short, it is an action taken to draw attention to the company's services; it can be physical goods for sale or services provided.
Common examples of marketing in the workplace include television commercials, roadside billboards, and magazine ads. The importance of marketing for your business is to make your customers aware of your product or service, engage them, and help them make a purchasing decision.
Additionally, a marketing plan, part of your business plan, helps create and maintain demand, relevance, reputation, competition, and more.
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_________ determines the point at which the cumulative dollar value of the benefits from a project equals the investment made in the project.
Breakeven analysis determines the point at which the cumulative dollar value of the benefits from a project equals the investment made in the project.
Describe break-even analysis using examples.Assume a company has $1 million in fixed costs and a 37% gross margin. $1 million divided by 0.37 results in $2.7 million as the break-even point. In the aforementioned example, the company needs to generate $2.7 million in revenue to meet its fixed and variable expenses. The business will make money if it boosts sales.
What makes it important?Small business owners are advised on how much product needs to be sold in order to be profitable by a calculation called a breakeven analysis. It helps entrepreneurs create a pricing strategy that will cover costs and generate a gross profit.
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suppose your property produces an annual noi of $50,000. you are looking at taking a mortgage loan with a 10-year term that is amortized over 30 years at a 6% interest rate. payments would be due monthly. what is the maximum loan amount you can take if the lender requires a minimum dcr of 1.25?
$555,972.04 is the maximum loan amount you can take if the lender requires a minimum dc of 1.25.
Debt Service Ratio = Annual NOI/Annual debt Service
1.25 = $50,000/Annual debt Service
Annual debt service = $40,000
- Monthly Loan payment = Annual debt Service/12 = $40,000/12
Monthly Loan payment = $3,333.3333
Calculating the maximum Loan amount using the PV of annuity formula:-
- [1 – (1+r)] PresentValue = C* = r
Where, C= Periodic Payments = $3,333.3333
r = Periodic Interest rate = 6%/12 = 0.5%
n= no of periods = 30 years*12 = 360
PresentValue = 3, 333.3333 * [1 – (1 +0.005)-560 – ( ] 0.005 =
1 – 0.16604192803 ) PresentValue = 3, 333.3333 * 0.005 =
Present Value = $555,972.04
So, the maximum Loan amount is $555,972.04.
A loan is a form of debt incurred by an individual or other reality. The lender — generally a pot, fiscal institution, or government — advances a sum of plutocrats to the borrower. In return, the borrower agrees to a certain set of terms including any finance charges, interest, prepayment date, and other conditions.
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a form of compensation whereby the employee receives a predetermined amount of benefit dollars to spend on a benefits package he or she has selected to meet individual needs is called a(n)
A flexible benefits plan is a type of pay wherein the employee receives a predetermined amount of benefit dollars to spend on a benefits package they have chosen to suit their particular needs.
What exactly is a flexible benefits plan?Employers can control their costs while providing health coverage that is appropriate for their employees' requirements by offering flexible benefits. You decide how many credits your employees should have access to in order to purchase their benefits coverage.
Employees can choose the level of coverage they require, whether it's the entire package or only the parts that apply to them specifically. Any unused credits may be carried over to the following plan year or a Health Spending Account by the employee. Flexible benefit plans provide employees with more options when it comes to their benefits and give companies the chance to:
By specifying the money to be spent, they may control their costs.Increasing employee understanding of benefit costsEncourage staff to exercise more caution when making purchases for medical services.Learn more about flexible benefits plans with the help of the given link:
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