Answer:
C. a new pair of jeans
Explanation:
Answer:
c
Explanation:
A hospitality company is evaluating building a new hotel in Bloomington (capital project) that management forecasts will generate $45,000 each year over its six (6) year life. If the required rate of return given the project's identified risks is 12% (percent), and the project's up front costs are estimated at $165,000, should management go forward with the project?
a. Management should approve the new hotel since the project's NPV is positive.
b. Management should reject the new hotel project as the project's NPV is negative.
c. Unable to determine given information.
Answer:
A
Explanation:
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
Only projects with a positive NPV should be accepted. A project with a negative NPV should not be chosen because it isn't profitable.
When choosing between positive NPV projects, choose the project with the highest NPV first because it is the most profitable.
NPV can be calculated using a financial calculator
Cash flow in year 0 = $-165,000
Cash flow in year 1 - 6 = $45,000
I = 12%
NPV = $20,013.33
the project should be approved because NPV is positive
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Windsor, the owner of Windsor's Sandwiches, contacts Gary, a new supplier. He promises Gary that he will pay him $375 if Gary delivers 20 pounds of cheese the following morning. Gary promises to make the delivery as requested by Windsor. What type of contract is formed and why?
Answer: bilateral contract
Explanation:
Based on the information given in the question, the type of contract formed is a bilateral contact.
A bilateral contract refers to a contract whereby both parties that are involved make promises to perform a certain action. The promise of some party will be the consideration on which the promise of the other party will be based.
Since Windsor promises Gary that he will pay him $375 if Gary delivers 20 pounds of cheese the following morning and Gary promises to make the delivery as requested by Windsor, then this is a bilateral contract.
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.
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
Which account option may require larger money contributions than usual but offers a higher interest rate than traditional savings?
Certificate of deposit
Checking
Money market
Saning
Answer:
Money Market
Explanation:
I just did this
Wireless Solutions reports operating expenses of $955,000. Operating expenses include both rent expense and salaries expense. Prepaid rent increases during the year by $27,000 and salaries payable increases by $18,500. What is the cash paid for operating expenses during the year
Answer:
$963,500
Explanation:
Given the that:
Operating expenses = $955,000
Prepaid rent increase = $27,000
Salaries payable increase = $18,500
Then, Cash paid for operating expenses during the year is computed by;
= Operating expenses + Prepaid rent increase - Salaries payable increase
= $955,000 + $27,000 - $18,500
= $963,500
Item7
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Skipped
Item 7
Internet users aged 15 and older are expected to buy about ________ worth of products and services online in 2022 (excluding travel, automobile, and prescription drugs).
Multiple Choice
$200 million
$900 million
$40 billion
$100 billion
$500 billion
Answer:
$500 billion
Explanation:
On January 1, 2016, Belden, Inc. issued long-term notes payable for $50,000. The note will be paid over 10 years with payments of $5,000 plus 12% interest due each January 1, beginning January 1, 2017. Prepare the amortization schedule for the first three payments.
Answer:
Belden, Inc.
Amortization Schedule
Period PV PMT Interest Deduction Net Liability
2017 $50,000.00 $11,000.00 $6,000.00 $5,000.00 $45,000.00
2018 $45,000.00 $10,400.00 $5,400.00 $5,000.00 $40,000.00
2019 $40,000.00 $9,800.00 $4,800.00 $5,000.00 $35,000.00
Explanation:
a) Data and Calculations:
Long-terms payable = $50,000
Period of note = 10 years
First payment = $11,000 ($5,000 principal + $6,000 interest)
Interest rate = 12%
Long-term payable after January 1, 2017 = $45,000 ($50,000 - $5,000)
12% Interest on payable balance of $45,000 = $5,400
Second payment = $10,400 ($5,000 principal + $5,400 interest)
Long-term payable after January 1, 2018 = $40,000 ($45,000 - $5,000)
12% Interest on payable balance of $40,000 = $4,800
Third payment = $9,800 ($5,000 principal + $4,800 interest)
Long-term payable after January 1, 2019 = $35,000 ($40,000 - $5,000)
Zwick Company bought 21,500 shares of the voting common stock of Handy Corporation in January 2021. In December, Handy announced $201,500 net income for 2021 and declared and paid a cash dividend of $9.00 per share on all 207,500 shares of its outstanding common stock. Zwick Company's dividend revenue from Handy Corporation in December 2021 would be:
Answer:
$193,500
Explanation:
Calculation to determine what Zwick Company's dividend revenue from Handy Corporation in December 2021 would be
Using this formula
Dividend revenue =Voting common stock shares *Cash dividend
Let plug in the formula
Dividend revenue=21,500 shares x $9.00 per share
Dividend revenue = $193,500
Therefore Zwick Company's dividend revenue from Handy Corporation in December 2021 would be:$193,500
Marko, Inc., is considering the purchase of ABC Co. Marko believes that ABC Co. can generate cash flows of $5,600, $10,600, and $16,800 over the next three years, respectively. After that time, they feel the business will be worthless. Marko has determined that a rate of return of 10 percent is applicable to this potential purchase. What is Marko willing to pay today to buy ABC Co.
Answer:
$26,473.33
Explanation:
The amount Marko would be willing to pay today can be determined by calculating the present value of the cash flows
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow in year 1 = $5,600
Cash flow in year 2 = $10,600
Cash flow in year 3 = $16,800
I = 10%
PV = $26,473.33
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Shannon Polymers uses straight-line depreciation for financial reporting purposes for equipment costing $760,000 and with an expected useful life of four years and no residual value. Assume that, for tax purposes, the deduction is 40%, 30%, 20%, and 10% in those years. Pretax accounting income the first year the equipment was used was $860,000, which includes interest revenue of $24,000 from municipal governmental bonds. Other than the two described, there are no differences between accounting income and taxable income. The enacted tax rate is 25%.
Required:
Prepare the journal entry to record income taxes.
Answer:
Dr Income Tax Expense $209,000
Cr Income Tax Payable $180,500
Cr Deferred Tax Liability $28,500
Explanation:
Preparation of the journal entry to record income taxes
First step is to determine the Current tax liability and Deferred tax liability
Current year Future year
Pre Tax Accounting Income $860,000 $0
Permanent differences
Municipal bond Interest ($24,000) $0
Temporary differences
Depreciation expense ($114,000) $114,000
[($760,000*40%)-($760,000/4)]
Taxable income $722,000 $114,000
Enacted tax rate 25% 25%
Current tax liability $180,500
($772,000*25%)
Deferred tax liability $28,500
($114,000*25%)
Now let Prepare the journal entry
Dr Income Tax Expense $209,000
($180,500+$28,500)
Cr Income Tax Payable $180,500
Cr Deferred Tax Liability $28,500
(Being income tax and deferred tax recorded for first year)
Sarah’s first questions for you have to do with the general ideas and terminology used to evaluate variances. Provide answers to the following questions (1)-(3). 1. Why might Sarah want to use standard costs to compare with her actual costs? a. Standard costs give management a cost structure for products that is applicable for the entire life of the business. b. Standard costs allow management to motivate employees by comparing their performance to what it would be under perfect conditions. c. Management can evaluate the differences between standard costs and actual costs to focus on correcting the cost variances.
Answer:
Sarah
The reason for Sarah to want to use standard costs to compare with her actual costs is:
c) Management can evaluate the differences between standard costs and actual costs to focus on correcting the cost variances.
Explanation:
Standard costs provide a control technique for evaluating the performance of Sarah's company at three levels: a standard performance level, a measure of actual performance, and a measure of the difference (variance) between standard and actual costs. Sarah will also use the variances resulting from the comparison of standard costs with actual costs to measure the non-financial performance of the entity.
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.
Mekia is in high school. She is thinking about possible career choices. Her guidance counselor gave her information about several career possibilities. Which best describes information she may read about the Human Services career cluster?
a) Human Services careers have an above average rate of increase in the number of jobs.
b)Human Services careers have an average rate of increase in the number of jobs.
c)Human Services careers have a below average rate of increase in the number of jobs.
d)Human Services careers have experienced no change in the number of jobs over the last couple of years.
Answer:
The statement that best describes the information she may read about the Human Services career cluster is:
a) Human Services careers have an above average rate of increase in the number of jobs.
Explanation:
The human services sector will add 257,700 jobs from 2014 to 2024. This represents an increase of more than 10% and is mainly propelled by the increasing need for social services.
To compare statement of cash flows reporting under the direct and indirect methods, indicate whether each item is used in the direct method or the indirect method.
a. Accounts payable
b. Payments to employees
c. Cash collections from customers
d. Accounts receivable
e. Payments to suppliers
Answer:
Indirect Method
a. Accounts payable increase or decrease
d. Accounts receivable increase or decrease.
The above are both used in the Indirect method and fall under Cashflow from Operating activities.
Direct Method
b. Payments to employees
c. Cash collections from customers
e. Payments to suppliers
The direct method involves the above and they all fall under Cash generated from operations.
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.
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Answer:
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On November 1, 2015, Ybarra Construction Company issued $400,000 of 5-year bonds that pay interest at an annual rate of 5%. The interest payments are due every six months (that is, the interest is compounded semi-annually). At the end of the five-year period, Ybarra must pay the bond holders a balloon payment of $400,000. a. What would the issue price of the bonds be if the prevailing interest rate is: Round answers to the nearest whole number.
Answer:
the question is incomplete, but I can give two examples of interest rate being higher or lower:
For example, interest rate is 6%
PV of face value = $400,000 / (1 + 3%)¹⁰ = $297,637.57
PV of coupon payments = $10,000 x 8.5302 (PVIFA, 3%, 10 peridos) = $85,302
Market price = $382,939.57
Second example, interest rate is 4%
PV of face value = $400,000 / (1 + 2%)¹⁰ = $328,139.32
PV of coupon payments = $10,000 x 8.9826 (PVIFA, 2%, 10 peridos) = $89,823
Market price = $417,962.32
If the required direct materials purchases are 15000 pounds, the direct materials required for production is three times the direct materials purchases, and the beginning direct materials are three and a half times the direct materials purchases, what are the desired ending direct materials in pounds?
Answer: 22500
Explanation:
The the desired ending direct materials in pounds will be calculated thus:
purchased (p) = 15000
Required will be = 3 × purchased = 3p
Beginning direct material = 3.5p
Therefore, the desired ending direct material will be:
= 3.5p + p - 3p
= 1.5p
= 1.5 × 15000
= 22500
Blue Corporation purchased a truck at the beginning of 2020 for $61,000. The truck is estimated to have a salvage value of $2,440 and a useful life of 195,200 miles. It was driven 28,060 miles in 2020 and 37,820 miles in 2021. Compute depreciation expense using the units-of-production method for 2020 and 2021.
Depreciation expense for 2020
Depreciation expense for 2021
Answer:
Depreciation expense for 2020 = $8,418
Depreciation expense for 2021 = $11,346
Explanation:
Depreciation expense using the units-of-production method is determined as follows :
Depreciation expense = Depreciation rate x annual usage
where,
Depreciation rate = (Cost - Salvage Value) ÷ Estimated usage
= ($61,000 - $2,440) ÷ 195,200 miles
= $0.30 per mile
thus,
Depreciation expense for 2020
Depreciation expense = $0.30 per mile x 28,060 miles
= $8,418
Depreciation expense for 2021
Depreciation expense = $0.30 per mile x 37,820 miles
= $11,346
Sutherland manufactures and sells 50,000 laser printers each month. A principal component part in each printer is its paper feed drive. Sutherland's plant currently has the monthly capacity to produce 80,000 drives. The unit costs of manufacturing these drives (up to 80,000 per month) are as follows. Variable costs per unit: Direct materials $ 23 Direct labor 15 Variable manufacturing overhead 2 Fixed costs per month: Fixed manufacturing overhead $ 1,300,000 Desk-Mate Printers has offered to buy 10,000 paper feed drives from Sutherland to be used in its own printers. a. Compute the average unit cost of manufacturing each paper feed drive assuming that Sutherland manufactures only enough drives for its own laser printers. b. Compute the incremental unit cost of producing an additional paper feed drive. c. Compute the per-unit sales price that Sutherland should charge Desk-Mate to earn $140,000 in monthly pretax profit on the sale of drives to Desk-Mate.
Answer:
Sutherland
a. The average unit cost of manufacturing each paper feed drive is:
= $56.25.
b. The incremental unit cost of producing an additional paper feed drive is:
= $170.
c. The per-unit sales price that Sutherland should charge Desk-Mate to earn $140,000 in monthly pre-tax profit on the sale of drives to Desk-Mate is:
= $184.
Explanation:
a) Data and Calculations:
Production and sales of laser printers per month = 50,000
Monthly production capacity for paper feed drives = 80,000
Unit costs of producing drives:
Variable costs per unit:
Direct materials $ 23
Direct labor 15
Variable manufacturing overhead 2
Variable cost per unit $40 $3,200,000 (80,000 * $40)
Fixed costs per month:
Fixed manufacturing overhead $1,300,000
Total production costs = $4,500,000
Average unit cost = $56.25 ($4,500,000/80,000)
Incremental unit cost of producing an additional paper feed drive:
Variable cost = $40 * 10,000 = $400,000
Additional fixed cost per month = $1,300,000
Total incremental costs = $1,700,000
Unit cost = $170 ($1,700,000/10,000)
Total incremental costs = $1,700,000
Monthly pre-tax target profit 140,000
Expected sales revenue = $1,840,000
Sales price per drive = $184 ($1,840,000/10,000)
Ahrends Corporation makes 70,000 units per year of a part it uses in the products it manufactures. The unit product cost of this part is computed as follows: Direct materials $ 17.80 Direct labor 19.00 Variable manufacturing overhead 1.00 Fixed manufacturing overhead 17.10 Unit product cost $ 54.90 An outside supplier has offered to sell the company all of these parts it needs for $48.50 a unit. If the company accepts this offer, the facilities now being used to make the part could be used to make more units of a product that is in high demand. The additional contribution margin on this other product would be $273,000 per year. If the part were purchased from the outside supplier, all of the direct labor cost of the part would be avoided. However, $8.20 of the fixed manufacturing overhead cost being applied to the part would continue even if the part were purchased from the outside supplier. This fixed manufacturing overhead cost would be applied to the company's remaining products. What is the financial advantage (disadvantage) of purchasing the part rather than making it
Answer:
$147,000
Explanation:
The computation of the financial advantage (disadvantage) of purchasing the part rather than making it is shown below;
Particulars Make Buy
Direct material $1,246,000 (70,000 × $17.80)
Direct labour $1,330,000 (70,000 × $17.80)
Variable manufacturing
overhead $70,000 (70,000 × $1)
Fixed manufacturing
overhead $623,000 (70,000 × ($17.10 - $8.20))
Purchase cost $3,395,000 (70,000 × $48.50)
Opportunity cost $273,000
Total cost $3,542,000 $3,395,000
So, the Advantage is
= ($3,542,000 - $3,395,000)
= $147,000
The financial advantage that Ahrends Corporation will get by purchasing the part rather than making it is $147,000.
Data and Calculations:
Number of units produced per year = 70,000
Direct materials $ 17.80
Direct labor 19.00
Variable manufacturing overhead 1.00
Total variable costs = $37.80
Fixed manufacturing overhead 17.10
Unit product cost $ 54.90
Outside supplier's price = $48.50
Total avoidable costs:
Direct materials $ 17.80
Direct labor 19.00
Variable manufacturing overhead 1.00
Fixed manufacturing cost = 8.90
Total avoidable costs = $46.70
Make Buy Differential Analysis
Variable costs $3,269,000 $3,395,000 ($126,000)
Additional contribution (273,000) 273,000
Total costs/savings $3,269,000 $3,122,000 $147,000
Thus, Ahrends Corporation will gain $147,000 by purchasing the part rather than making its in-house.
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Road Master Shocks has 15,000 units of a defective product on hand that cost $80,000 to manufacture. The company can either sell this product as scrap for $6 per unit or it can sell the product for $9 per unit by reworking the units and correcting the defects at a cost of $40,000. Prepare a schedule to show the effect of selling the defective units as scrap or rework.
Answer:
If the units are reworked, net income will increase by $5,000.
Explanation:
Giving the following information:
Number of units= 15,000
Sell as-is:
Selling price= $6 per unit
Rework:
Selling price= $9
Total cost= $40,000
The original production costs ($80,00) should not be taken into account because they remain constant for the two options.
Now, we will determine the effect on the income of both choices:
Sell as-is:
Effect on income= 6*15,000= $90,000 increase
Re-work:
Revenue= 15,000*9= 135,000
Total cost= (40,000)
Effect on income0 $95,000 increase
If the units are reworked, net income will increase by $5,000.
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
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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examples of veriable costs
Answer:
Exmples are : labor wage, cost of inputs
Explanation:
Variable cost are the costs that are changing with changing in inputs or production.
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%.
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
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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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.