Answer:
$3,850
Explanation:
Calculation to determine What amount will be recognized as accounts receivable, net on the balance sheet as of November 30
Using this formula
Accounts receivable=Goods shipped -Defective merchandise return
Let Plug in the formula
Accounts receivable=$4,300-$450
Accounts receivable=$3,850
Therefore What amount will be recognized as accounts receivable, net on the balance sheet as of November 30 is $3,850
Greg, a landscaper, is planning on opening his own landscaping company. He currently earns $50,000 per year working for his uncle but he will need to quit that job. He hires one employee at an annual wage of $15,000. He needs to pay rent of $8,000 per year. He plans to use $12,000 in savings to pay for the equipment he needs, the market value of the equipment at the end of the year is $10,000. Also he needs to buy $3,000 of goods and services from other firms. The current interest rate on savings is 7 percent. Greg predicts that the revenue from the new landscaping company is $80,000 a year. What is total opportunity cost incurred by Greg in running his own business
Answer: $52,840
Explanation:
The opportunity cost are the benefits he will give up to pursue his current venture of landscaping.
= Salary from working for uncle + Interest on the Savings to be used in business + Difference in market value if he waits till the end of the year
= 50,000 + (7% * 12,000) + (12,000 - 10,000)
= $52,840
The total opportunity cost incurred by Greg in running his own business is $52,840.
It should be noted that opportunity cost simply means the real cost of a foregone alternative. Opportunity cost arises as a result of scarcity of resources.
Therefore, the total opportunity cost incurred by Greg in running his own business will be:
= Salary from working for uncle + Interest on the Savings to be used in business + Difference in market value if he waits till the end of the year
= 50,000 + (7% × 12,000) + (12,000 - 10,000)
= 50000 + 840 + 2000
= $52,840
In conclusion, the opportunity cost is $52840.
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g at the close of its first year of operations, december 31, 2020, delaware company reported net realizable value of accounts receivable of $1,620,000. during 2020,the company had charges to bad debt expense of $270,000 and wrote off, as uncollectible, accounts receivable of $120,000. what should the company report on its balance sheet at december 31, 2020, as accounts receivable before the allowance for doubtful accounts
Answer:
$1,770,000
Explanation:
Given the above information, the computation of accounts receivable before the allowance is shown below;
= Beginning account receivable balance + Bad debt expense - Uncollectible accounts receivables
= $1,620,000 + $270,000 - $120,000
= $1,770,000
The bad debt is an expense hence will be added whereas the account receivable which is yet to be collected should be deducted the computation part.
How swag are u 1/10
ayton Inc. reports in its Year 7 annual report, sales of $7,362 million and cost of goods sold of $2,945 million. For next year, you project that sales will grow by 3% and that cost of goods sold percentage will be 1 percentage point higher. Projected cost of goods sold for Year 8 will be:
Answer: $2,974.45 million
Explanation:
Cost of goods sold for Year 7 = $2,945 million
Cost of goods sold is expected to increase by 1%.
Cost of goods sold in Year 8 will be:
= 2,945 * (1 + 1%)
= $2,974.45 million
Pacific Cruise Lines is a defendant in litigation involving a swimming accident on one of its three cruise ships.
Required:
1. The likelihood of a payment occurring is probable, and the estimated amount is $1.11 million.
2. The likelihood of a payment occurring is probable, and the amount is estimated to be in the range of $0.91 to $1.11 million.
3. The likelihood of a payment occurring is reasonably possible, and the estimated amount is $1.11 million.
4. The likelihood of a payment occurring is remote, while the estimated potential amount is $1.11 million.
Record the necessary entry for the scenarios given above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in dollars, not in millions, (i.e. 5.5 should be entered as 5,500,000).)
Answer: See explanation
Explanation:
The necessary journal entry with regards to the scenarios given above will be:
1. Debit Loss $1,110,000
Credit Contingent liability $1,110,00
2. Debit Loss $910,000
Credit Contingent Liability $910,000
3. No journal entry
4. No journal entry
Note that there won't be a journal entry for (3) and (4) since the likelihood of a payment occurring is reasonably possible, and remote.
A newspaper vendor is trying to determine how many daily papers to order. The cost to the vendor of a single paper is $0.75. The vendor sells each paper for $1.85. The value of the paper will drop to 0 the next day. If the daily demand for papers is normally distributed with a mean of 500 papers and a standard deviation of 100 papers. The newspaper vendor should order how many papers?
a. 500
b. 525
c. 559
d. 795
e. 475
Answer:c
Explanation:cuz it c
Consumer surplus is Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a positive in the case of a monopolist practicing perfect price discrimination. b zero for a single-price monopolist. c equal to the price minus the marginal cost. d less in the case of a single-price monopoly than in the case of a perfectly competitive industry.
Answer:
d less in the case of a single-price monopoly than in the case of a perfectly competitive industry.
Explanation:
A monopoly is a market structure which is typically characterized by a single-seller who sells a unique product in the market by dominance. This ultimately implies that, it is a market structure wherein the seller has no competitor because he is solely responsible for the sale of unique products without close substitutes. Any individual that deals with the sales of unique products in a monopolistic market is generally referred to as a monopolist.
For example, a public power company is an example of a monopoly because they serve as the only source of power utility provider to the general public in a society.
In a perfect competition, there are many buyers and sellers of homogeneous products, and there is free entry and exit in the market.
This simply means that, in a perfectly competitive market, there are many buyers and sellers (price takers) of homogeneous products (standardized products with substitute) and the market is free (practically open) to all individuals or business entities that are willing to trade all their goods and services.
Generally, a perfectly competitive market is characterized by the following features;
1. Perfect information.
2. No barriers, it is typically free.
3. Equilibrium price and quantity.
4. Many buyers and sellers.
5. Homogeneous products.
Examples of a perfectly competitive market are the Agricultural sector, e-commerce and the foreign exchange market.
Generally, consumer surplus is less in the case of a single-price monopoly than in the case of a perfectly competitive industry.
Gaston Company is considering a capital budgeting project that would require a $2,400,000 investment in equipment with a useful life of five years and no salvage value. The company’s tax rate is 30% and its after-tax cost of capital is 13%. It uses the straight-line depreciation method for financial reporting and tax purposes. The project would provide net operating income each year for five years as follows:
Sales $3,400,000
Variable expenses 1,600,000
Contribution margin 1,800,000
Fixed expenses:
Advertising, salaries, and other fixed out-of-pocket costs $680,000
Depreciation 660,000
Total fixed expenses 1,340,000
Operating income $460,000
Required:
Compute the project's net present value.
Answer:
$1,053,890.40
Explanation:
Net operating income $460,000
Less: Tax at 30% $138,000
After tax income $322,000
Add: Depreciation $660,000
Net cash inflow $982,000
Year Cash inflow PVF(13%) PV of cash-flows
0 ($2,400,000) 1 ($2,400,000)
1-5 $982,000 3.5172 $3,453,890.40
Project's net present value $1,053,890.40
The balance sheet for Monty Consulting reports the following information on July 1, 2022. Long-term liabilities Bonds payable $1,380,000 Less: Discount on bonds payable 55,200 $1,324,800 Monty decides to redeem these bonds at 102 after paying annual interest. Prepare the journal entry to record the redemption on July 1, 2022.
Answer:
Date Accounts & Explanation Debit Credit
July 1, Bonds payable $1,380,000
2022 Loss on bonds redemption $82,800
Discount on bonds payable $55,200
Cash A/C $1,407,600
[$1,380,000*102%]
(To record the redemption of bond)
Stock X and Stock Y have a correlation coefficient of .5. Stock X has an expected return of 10% and a standard deviation of 10%. Stock Y has an expected return of 14% and a standard deviation of 21%. What is the portfolio standard deviation if 60% of your wealth is invested in Stock X and 40% in Stock Y
Answer:
12.53%
Explanation:
Since there are only two assets in the portfolio, its standard deviation can be determined using the two-asset portfolio standard deviation provided below;
σP = (wA2 * σA2 + wB2 * σB2 + 2 * wA * wB * σA * σB * ρAB)^(1/2)
wA=proportion of the portfolio invested in X=60%
σA=standard deviation of return on X= 10%
wB=proportion of the portfolio invested in Y=40%
σB=standard deviation of return on Y =21%
ρAB= correlation between X and Y=.5
σP=(60%^2*10%^2+40%^2*21%^2+2*60%*40%*10%*21%*.5)^(1/2)
σP=12.53%
Assume that the yen/dollar exchange rate quoted in London at 3:00 p.m. is ¥115 = $1. Rinaldo finds out that the rate quoted in New York at 10:00 a.m. (3:00 p.m. London time) is ¥135 = $1. Rinaldo decides to buy yen in New York and sell it in London. Rinaldo is engaging in
Answer: arbitrage
Explanation:
Based on the information given in the question, we can infer that Rinaldo is engaging in arbitrage.
This is an example of currency arbitrage as it involves Rinaldo buying and selling the currency pairs that's gotten from different brokers in order to be able to take advantage of mispriced rates.
The options for closing inventory is
A. 10.50
B. 10
C. 10.25
Total cost options are
A. 8,050
B. 8,000
C. 8,200
Answer:
i think A
Explanation:
I hope this helps:)))
The OECD is concerned about transfer pricing practices because ________. a. transfer pricing can help maximize a company's worldwide tax liability b. companies use transfer prices to manipulate prices and, therefore, taxes c. transfer prices tend to be higher in industrial than developing countries d. governments use transfer prices to manipulate companies' investment strategies
Answer:
b. companies use transfer prices to manipulate prices and, therefore, taxes
Explanation:
Organisation for Economic Co-operation and Development was established on the 30th of September, 1961 and it comprises of 38 member countries. It is an intergovernmental organization that is saddled with the responsibility of stimulating economic growth and world trade among member countries.
The OECD is concerned about transfer pricing practices because companies use transfer prices to manipulate prices and, therefore, taxes
Marvin is trying to figure out his cash flow. What is the BEST advice for Marvin to accurately determine his cash flow? OA. Add your liabilities to your assets. OB. Subtract your liabilities from your assets. OC. Add your expenditures to your income. OD. Subtract your expenditures from your income.
Answer:
D
Explanation:
Cash flow is the flow of cash and cash equivalent in and and out of a business.
there are three types of cash flows:
Investing cash flowoperating cash flow financing cash flowCash flow = income - expenditure
If cash flow is being generated from net income, non cash expenditures e.g. depreciation is added back
Answer: Subtract your expenditures from your income.
1. You are evaluating the purchase of HypeToys, Inc. common stock that just paid an annual dividend of $1.80. You expect the dividend to grow at a rate of 12% per year, indefinitely. You estimate that a required rate of return 17.5% will be adequate compensation for this investment. Assuming that your analysis is correct, and the company pays dividends once a year, what is the most that you’re willing to pay for the common stock if you were to purchase it today? Round to the nearest $.01.
Answer:
$36.65
Explanation:
D1 = D*(1+g)
D1 = 1.8*(1+0.12)
D1 = 1.8(1.12)
D1 = $2.016
Price of stock P = D1 / (re - g)
Price of stock P = $2.016 / (0.175 - 0.12)
Price of stock P = $2.016 / 0.055
Price of stock P = $36.654545
Price of stock P = $36.65
So, $36.65 is the most that i will be willing to pay for the common stock if i am to purchase it today.
Hardy Company must maintain a compensating balance of $50,000 in its checking account as one of the conditions of its short-term 6% bank loan of $500,000. Hardy's checking account earns 2% interest. Ordinarily, Hardy would maintain a $20,000 balance in the account for transaction purposes. What is the loan's approximate effective interest rate
Answer:
The loan's approximate effective interest rate is 6.17%.
Explanation:
Interest expense = Short term bank loan * Short term bank loan interest rate = $500,000 * 6% = $30,000
Interest income = Balance in the account checking account * Interest rate on checking account balance = $20,000 * 2% = $400
Net interest expense = Interest expense - Interest income = $30,000 - $400 = $29,600
Available amount = Short term bank loan interest rate - Balance in the account checking account = $500,000 - $20,000 = $480,000
Effective interest rate = Net interest expense / Available amount = $29,600 / $480,000 = 0.0617, or 6.17%
Therefore, the loan's approximate effective interest rate is 6.17%.
Robert worked as a campus police officer at Cal Poly Pomona. As part of his union contract, Robert was required to submit to a drug test four times per year. He tested positive for crystal meth (an illegal drug) during one of his regularly-scheduled drug tests. According to the same union contract, a positive test for an illegal drug could result in automatic termination, so Robert was fired from his job. Robert sued Cal Poly Pomona for wrongful employment termination. What should be the result
Answer:
Cal Poly Pomona and Robert
Robert stands terminated according to the employment contract that he signed to.
Explanation:
Robert cannot cite wrongful termination because his termination was not in violation of any federal anti-discrimination laws or based on any breach of his contract with the union. Clearly, Robert was not fired on the basis of his race, gender, ethnic background, religion, or disability, but on the basis of testing positive for an illegal drug. Substance abuse, ordinarily, renders the affected officer unfit for his or her responsibilities.
The result of Robert suing Cal Poly Pomona for wrongful employment
termination will be a negative one and his employment will remain
terminated.
Robert signed an agreement before taking the offer to work as a campus
police officer. Part of the union contract states that a positive test for an
illegal drug will result in automatic termination. This was signed by Robert
which means he agreed to the terms and condition.
Suing Cal Poly Pomona won't yield any positive result because of him
signing the union contract thereby agreeing to that condition.
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Steinberg Company produces commercial printers. One is the regular model, a basic model that is designed to copy and print in black and white. Another model, the deluxe model, is a color printer-scanner-copier. For the coming year, Steinberg expects to sell 90,000 regular models and 18,000 deluxe models. A segmented income statement for the two products is as follows:
Regular Model Deluxe Model Total
Sales $13,500,000 $12,150,000 $25,650,000
Less: Variable costs 9,000,000 7,290,000 16,290,000
Contribution margin $4,500,000 $4,860,000 $9,360,000
Less: Direct fixed costs 1,200,000 960,000 2,160,000
Segment margin $3,300,000 $3,900,000 $7,200,000
Less: Common fixed costs 1,280,000
Operating income $5,920,000
Required:
1. Compute the number of regular models and deluxe models that must be sold to break even.
2. Using information only from the total column of the income statement, compute the sales revenue that must be generated for the company to break even.
Answer:
1. Regular models 24,000
Deluxe models 3,556
2.17.4354%
Explanation:
1. Computation for the number of regular models and deluxe models that must be sold to break even
REGULAR MODEL:
First step is to calculate the Contribution per unit using this formula
Contribution per unit=Contribution/No.ofunits
Let plug in the formula
Contribution per unit=$4,500,000/90
Contribution per unit=50
Now let calculate the Break even units using this formula
Break even units=Direct fixed costs/Contribution per unit
Let plug in the formula
Break even units=$1,200,000/50
Break even units=24,000
DELUXE MODEL:
First step is to calculate the Contribution per unit using this formula
Contribution per unit=Contribution/No.ofunits
Let plug in the formula
Contribution per unit=$4,860,000/18,000
Contribution per unit=270
Now let calculate the Break even units using this formula
Break even units=Direct fixed costs/Contribution per unit
Let plug in the formula
Break even units=960,000/270
Break even units=3,556
Therefore the number of regular models and deluxe models that must be sold to break even are:
Regular models 24,000
Deluxe models 3,556
2. Computation for the sales revenue that must be generated for the company to break even
First step is to calculate the Break-even sales -
Break-even sales = 16,290,000 + 2,160,000 + 1,280,000
Break-even sales = 19,730,000
Second step is to calculate the Contribution Using this formula
Contribution = Break-even sales - Variable costs
Let plug in the formula
Contribution = 19,730,000 - 16,290,000
Contribution = $3,440,000
Now let calculate the Contribution margin ratio using this formula
Contribution margin ratio=Contribution/Break even sales *100
Contribution margin ratio=$3,440,000/$19,730,000*100
Contribution margin ratio=17.4354%
Therefore the Contribution margin ratio is 17.4354%
Nat is a salesman for a real estate developer. His employer permits him to purchase a lot for $75,000. The employer's adjusted basis for the lot is $45,000, and its normal selling price is $90,000. What is Nat's recognized gain and his basis for the lot
Answer:
Recognized gain = $15,000
Basis for lot = $90,000
Explanation:
According to the scenario, computation of the given data are as follows,
Purchase amount = $75,000
Adjusted basis = $45,000
Normal selling price = $90,000
So, Recognized gain = Normal selling price - Purchase amount
By putting the value, we get
Recognized gain = $90,000 - $75,000
= $15,000
Now, Basis for lot = Purchase amount + Recognized gain
= $75,000 + $15,000
= $90,000
The Tinslow Co. has 125,000 shares of stock outstanding at a market price of $93 a share. The company has just announced a 5-for-3 stock split. How many shares of stock will be outstanding after the split
Answer:
Total shares outstanding = 208,333 units
Explanation:
A stock split occurs where a company increases the the total unit of its existing shares by dividing them . It does this to achieve a cheaper nominal price of per unit of share without increasing the total nominal value
Total shares outstanding = 5/3× 125,000= 208,333.
Total shares outstanding = 208,333 units
What was the overall response to Cornett’s plan to put his city on a diet, both locally and nationwide? What were some things that occurred as a result of the coverage and his website.
Mayor Cornett's initiative was well received nationally and locally because he cared for the public health of citizens in an innovative way.
Who is Michael Cornett?Michael Cornett (1958) is an American politician who served as the mayor of Oklahoma City between 2005 and 2018.
During his tenure, he had an innovative and unconventional initiative that he called This City Is Going On A Diet with which he sought to establish guidelines for good nutrition and a healthy lifestyle to reduce obesity rates in the city.
In general, this initiative was well received by the inhabitants of the city who joined efforts to lose weight. Additionally, this had a positive impact at the national level since the president's wife extolled her positive work for the health of citizens.
In this program, he founded a help website for people who were interested in getting professional weight loss support. There they found healthy food options, tips and other pertinent information to help them lose weight.
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The transactions of Spade Company appear below. Kacy Spade, owner, invested $16,250 cash in the company in exchange for common stock. The company purchased office supplies for $471 cash. The company purchased $8,986 of office equipment on credit. The company received $1,917 cash as fees for services provided to a customer. The company paid $8,986 cash to settle the payable for the office equipment purchased in transaction c. The company billed a customer $3,445 as fees for services provided. The company paid $515 cash for the monthly rent. The company collected $1,447 cash as partial payment for the account receivable created in transaction f. The company paid a $1,100 cash dividend to the owner (sole shareholder). Required: 1. Prepare general journal entries to record the transactions above for Spade Company by using the following accounts: Cash; Accounts Receivable; Office Supplies; Office Equipment; Accounts Payable; Common Stock; Dividends; Fees Earned; and Rent Expense. 2. Post the above journal entries to T-accounts, which serve as the general ledger for this assignment.
Jasper pays a fair price for Rosa's five wooded acres in a valid contract. But, Rosa decides she does not want to give up the land after and will not leave. Jasper can file suit and ask for ______________________ to take the land per the contract. specific performance a recission punitive damages complete performance
Answer:
specific performance
Explanation:
A specific performance is defined as remedy issued by a court when a conflict in contact occurs.
This instructs a particular party to perform a specific task in a contract or complete execution of the contract.
In this instance where Jasper pays a fair price for Rosa's five wooded acres in a valid contract. But, Rosa decides she does not want to give up the land after and will not leave.
Jasper can seek a specific performance to compel Rosa to go through with the sale
Which of the following is true of scrum?
A) It was developed to overcome the problems that occur when using the Business Process Modeling Notation (BPMN).
B) It does not adapt to change easily.
C) It is generic enough to be used for the development of business processes, information systems, and applications.
D) Its work periods are usually three months or longer.
E) Answers B and D are correct.
Statement that explains scrum as regards this question is:A: It was developed to overcome the problems that occur when using the Business Process Modeling Notation (BPMN).
Scrum can be regarded as a framework which helps teams to work together. It can be considered as an agile project management framework, and it is developed so that the problems that is associated with Business Process Modeling Notation can be overcomed.Therefore, option A is correct.
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Assume that you are on the financial staff of Vanderheiden Inc., and you have collected the following data: The yield on the company’s outstanding bonds is 7.75%, its tax rate is 40%, the next expected dividend is $0.65 a share, the dividend is expected to grow at a constant rate of 6.00% a year, the price of the stock is $19.00 per share, the flotation cost for selling new shares is F = 10%, and the target capital structure is 45% debt and 55% common equity. What is the firm's WACC, assuming it must issue new stock to finance its capital budget?
Answer:
WACC = 7.48%
Explanation:
We can calculate the Firm's WACC by using Excel.
Let's assume this is our Excel Blank Sheet.
A B C D
1 Particulars Rate Weight Weighted rate
2 Debt = 7.75%(1 - 40%) 0.45 =B2×C2
= 4.65%
3 Equity = (0.65/(19 × (1 - 10%)))+6%
= 9.80% 0.55 = B3×C3
4 WACC =SUM(D2:D3)
Output:A B C D
1 Particulars Rate Weight Weighted rate
2 Debt = 4.65% 45% 2.09%
3 Equity = 9.80% 55% 5.39%
4 WACC 7.48%
Price rises from $10 to $11, and the quantity demanded falls from 100 units to 95 units. What is the price elasticity of demand using the midpoint formula between these two prices in absolute terms (round to 2 decimal places)
Answer:
0.54
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = midpoint change in quantity demanded / midpoint change in price
Midpoint change in quantity demanded = change in quantity demanded / average of both demands
change in quantity demanded = 100 - 95 = 5
average of both demands = (100 + 95) / 2 = 97.5
Midpoint change in quantity demanded = 5 / 97.5 = 0.051282
midpoint change in price = change in price / average of both price
change in price = $11 - $10 = 1
average of both price = ($11 + $10) / 2 = 10.5
midpoint change in price = 1 / 10.5 = 0.095238
Price elasticity of demand = 0.051282 / 0.095238 = 0.54
Rubin Enterprises had the following sales-related transactions on a recent day:
a. Billed customer $27,500 on account for services already provided.
b. Collected $5,875 in cash for services to be provided in the future.
c. The customer complained about aspects of the services provided in Transaction a. To maintain a good relationship with this customer, Rubin granted an allowance of $1,500 off the list price. The customer had not yet paid for the services.
d. Rubin provided the services for the customer in Transaction b. Additionally, Rubin granted an allowance of $350 because the services were provided after the promised date. Because the customer had already paid, Rubin paid the $350 allowance in cash.
Required:
Prepare the necessary journal entry (or entries) for each of these transactions.
Answer:
Transaction a
Debit : Account Receivable $27,500
Credit : Sales Revenue $27,500
Transaction b
Debit : Cash $5,875
Credit : Deferred Revenue $5,875
Transaction c
Debit : Sales Revenue $1,500
Credit : Account Receivable $1,500
Transaction d
Debit : Deferred Revenue $5,875
Credit : Sales Revenue $5,525
Credit : Discount received $350
Explanation:
The journals have been prepared above.
Which of the following statements regarding culture and government is true? Multiple Choice In the United States, there is a close working relationship between businesses and government. Worker welfare is more important than corporate profit in most U.S. companies. In Europe, bribery and similar approaches for making sales are acceptable. Plant closure laws, layoff regulations, and worker benefits tend to be much higher in the United States than in European countries. Variations in values and behaviors across cultures affect organizations as well as individuals.
Answer:
Variations in values and behaviors across cultures affect organizations as well as individuals.
Explanation:
Culture can be defined as the general way of life of a group of people living together in a particular location or society.
Basically, culture comprises of beliefs, values, behaviors, language, dressing, cuisine, music, symbols, arts, social habits, knowledge, customs, laws pertaining to a particular group of people living together in a society.
This ultimately implies that, culture are acquired and passed from one generation to another.
A cultural trait can be defined as the smallest characteristics of human activity (actions) that is mainly acquired socially and transmitted from one generation to another through various modes of communication. Thus, these unique behavioral informations or characteristics and beliefs acquired by people socially are transmitted from one individual or group of people to another.
Basically, cultural traits play a significant role in the way of life of a group of people in that it is a unique collection of various cultural elements that are closely related such as behaviors and beliefs.
As there are differences in the way and manner in which individuals behave due to their varying cultural background and landscape, this goes a long way to affect organizations.
Hence, the true statement regarding culture and government is that, variations in values and behaviors across cultures affect organizations as well as individuals.
Legos makes multiple lines of products, including Duplos (for toddlers), various Lego kits and games (for boys 7-12 years of age), Friends and Disney Princess Lego kits (for girls 7-12 years of age), Technics (automated kits for teenage boys), and Legos Architecture (for young adults and college students). For each of these product lines, Lego targets a specific segment of consumers and develops different promotional strategies to appeal to each segment. This illustrates:
Question Completion:
O an undifferentiated targeting strategy.
O a differentiated (multi-segment) targeting strategy.
O a concentrated targeting strategy.
O none of these.
O an non-concentrated targeting strategy.
Answer:
Legos
This illustrates:
O a differentiated (multi-segment) targeting strategy.
Explanation:
The company is using a differentiated, multi-segment targeting strategy. The multi-segments targeted are toddlers, boys 7-12 years of age, girls 7-12 years of age, teenage boys, and young adults and college students. With this differentiated multi-segment marketing, Legos targets each segment in a different way, providing unique benefits to the different market segments. The purpose is to maximize sales and profits by meeting the multivariate needs of the various segments.
Pluto Inc., a leather goods manufacturer, produces and sells a wide range of leather bags, wallets, purses, and belts. It recently opened an outlet in Mexico. However, since Mexico's per capita income is approximately one-third that of the U.S., Lolita's sales have dipped. Moreover, the extent of available financing in the country is limited. With regard to global marketing research, the dip in Lolita's sales can be attributed to which of the following organizational issues?
A. Political conditions
B. Culture
C. Willingness to buy
D. Ability to buy