Answer:
$4,400,000,000
Explanation:
The formula is shown below together with the computation.
Value of the firm = [(Firm's current profit ) × (1 + firm's opportunity cost of funds/Interest rate)] ÷ (Firm's opportunity cost of funds/Interest rate - Constant growth annual rate)
= [($120,000,000) × (1 + 10%)] ÷ (10% - 7%)
= [($120,000,000) × (1.1)] ÷ (0.1 - 0.07)
= $120,000,000 × 1.1 ÷ 0.03
= $132,000,000 ÷ 0.03
= $4,400,000,000
As a financial manager for WillPower, Inc, you have the following information: a) The company follows a residual dividend policy; b) The total capital budget for next year is likely to be $8,000,000; c) The forecasted level of earnings next year is $8,000,000; d) The target or optimal capital structure is a debt ratio of 40%;
Answer:
a. Amount funded with equity is $4,800,000
b. Dividend is $3,200,000
c. Dividend Payout ratio is 40.00%
Explanation:
Note: This question is incomplete, and the complete one is as follows:
As a financial manager for WillPower, Inc, you have the following information: a) The company follows a residual dividend policy; b) The total capital budget for next year is likely to be $8,000,000; c) The forecasted level of earnings next year is $8,000,000; d) The target or optimal capital structure is a debt ratio of 40%;
Please answer the following questions:
a. What will be the amount funded with equity for the project ? (Keep the answer to a whole number. Example of answer format: $1,000,000)
b. Compute the amount of the dividend . (Keep the answer to a whole number. Example of answer format: $1,000,000)
c. Compute the dividend pay-out ratio . (Keep the answer to two decimals. Example of the answer format: 55.55%)
The following are therefore the explanation of the answers to the question:
a. What will be the amount funded with equity for the project ? (Keep the answer to a whole number. Example of answer format: $1,000,000)
Given that the target or optimal capital structure is a debt ratio of 40%, this implies that there will be 40% debt finance and 60% (100% - 40%) equity finance. Therefore, we have:
Amount funded with equity = Total capital budget for next year * Percentage of equity finance = 8,000,000 * 60% = $4,800,000
b. Compute the amount of the dividend. (Keep the answer to a whole number. Example of answer format: $1,000,000)
Since the company follows a residual dividend policy, it implies that the earnings available are employed to finance capital expenditure budget first before dividends are paid to the shareholders.
Since amount funded with equity is $4,800,000 as obtained in part a, it implies that this must be deducted first from the forecasted level of earnings next year to obtain the residual that will be paid as dividend as follows:
Dividend = Forecasted level of earnings next year - Amount funded with equity = $8,000,000 - $4,800,000 = $3,200,000
c. Compute the dividend pay-out ratio . (Keep the answer to two decimals. Example of the answer format: 55.55%)
Dividend payout ratio refers to the percentage of the earnings or net income of a company that is paid by the company to its shareholders as dividend. This can therefore be calculated
Dividend Payout ratio = Dividend / Earnings = $3,200,000 / $8,000,000 = 0.40, or 40.00%
Therefore, WillPower, Inc is expected to pay 40% of its earnings as dividend to its shareholders.
Net credit sales = $400,000 Net income = $100,000 Average total assets = $80,000 Average accounts receivable = $20,000 What is the average collection period in days (rounded to the nearest whole day)?
Answer:
73 days
Explanation:
average collection period = number of days in a period / receivables turnover
receivables turnover = revenue / average receivables = $100,000 / $20,000 = 5
average collection period = 365 / 5 = 73 days
I hope my answer helps you
Kyle accepted a job at Brenton Manufacturing. During his training, he was told that defective and poor-quality products were unacceptable, and the goal is to manufacture goods that met 100 percent of standards. What methodology does this company use
Answer:
TQM (Total quality management)
Explanation:
Total Quality Management is process by which all members of an organisation take part in improving products, services, processes, and the culture of the workplace.
The aim of TQM is to achieve long term success of the business through customer satisfaction.
Kyle was made to understand that defective and poor-quality products were unacceptable, and the goal is to manufacture goods that met 100 percent of standards.
This is a TQM strategy that ensures customer is always satisfied with the company's product.
Identify the advantages and disadvantages of each entry mode.
1. Tight control
2. Cost avoidance
3. Lower costs lost
4. Most costly method
5. Little future
6. Revenue
7. Lost economies
8. Access to local
9. Expertise
10. Profit from
11. Processes
12. Low capital
13. Requirement
14. Battles for control
a. Entry Mode
b. Exporting
c. Turnkey Project
d. Licensing
e. Joint Venture
f. Wholly-Owned
g. Subsidiary
Answer:
Exporting
Advantage
Cost avoidance
Disadvantage
Lower Costs Loss.
With Exporting, one can get into a country with lower costs because they will not have to set up. However they stand to have the disadvantage of losing lower costs.
Turnkey Project
Advantage
Profit from Processes
Disadvantage
Little Future Revenue
Turnkey projects involve building a facility for another company and then fully equipping it. When it is ready you hand it over. You stand to make profits from the process of building but because the facility is given to the purchaser, there is little chance for future revenue.
Licensing
Advantage
Low capital Requirement
Disadvantage
Lost Economies
With Licensing, one does not have to spend a lot to get into a country as other companies just use your license. You however stand the risk of losing your control in the country.
Joint Venture
Advantage
Access to Local Expertise
Disadvantage
Battles for Control
With Joint Venture, an International firm will have access to the expertise of its partners who are locals and know how things are done. However, because the locals know how things are done and are in their country, there might be battles between the partners about who should dominate.
Wholly-Owned Subsidiary
Advantage
Tight Control
Disadvantage
Most Costly Method
With a wholly-owned Subsidiary, an international company will have complete control over the affairs of the business and not have to battle for it with anyone. The drawback however is the cost it will take to set up. Large amounts will always have to be spent on starting a fresh company in a different country.
A jeans maker is designing a new line of jeans called Slims. The jeans will sell for $355 per pair and cost $262.70 per pair in variable costs to make. (Round your answers to 2 decimal places.)
Required:
a. Compute the contribution margin per pair.
b. Compute the contribution margin ratio.
Answer:
a.$92.30
b.27.55%
Explanation:
a. Computation for the contribution margin per pair
Sales 355.00 per pair
Less:Variable cost $262.70 per pair
Contribution margin $92.30 per pair
Therefore the Contribution margin per pair will be $92.30
b. Computation for the contribution margin ratio.
Using this formula
Contribution margin ratio=Contribution margin per unit/Selling price per unit
Where,
Contribution margin per unit =$92.30
Selling price per unit =$335.00
Let plug in the formula
Contribution margin ratio=$92.30/$335.00
Contribution margin ratio =27.55%
Therefore the Contribution margin ratio will be 27.55%
What are the kinds of purchases for which you’ll "spare no expense"? What kinds of purchases do you want to buy spending as little as possible? What are the major differences between these two categories that drive your attitude regarding price?
Answer:
"Spare no Expense" Purchases
When purchasing long-term items (assets) which cannot be consumed within a short-term period, one tends to "spare no expense." These purchases are dictated by their quality and not price. For example, in constructing a building an individual or an entity does not consider the price as a deciding factor. Instead, the entity goes for the best quality at whatever price. In such a situation, it can be described as "sparing no expense" because it can spend as possible as is needed to ensure that the quality of the construction was of the highest standard. A wealthy man does not spare any expense to receive medical treatment. Vacationists spare no expense to go on vacation
These purchases or items come with high prices and they last longer than a year.
On the other hand, one does not want to spend much resources on goods that are not durable. So, the person involved tend to spend as little as possible. No one wants to buy expensive food items. But, the same person can pay for an exorbitant car. No one wants to expend much resources on inner wears, but the same person can spend thousand for the outer wears, to put up appearances.
Ostentatious goods that convey image attract higher prices much more than private goods that others co not care whether you use them or not. This accords with our human natural way of believing in appearances.
The major factors that differentiate between these two categories that drive our attitude regarding price include:
a) Scarcity, b) Longevity, c) Quality, d) Price, e) Durability, f) Ostentation
Explanation:
The expression "spare no expense" means to spend as much financial resources as needed in order to make something happen or bring about an outcome.
Yuhu manufactures cell phones and is developing a new model with a feature (aptly named Don't Drink and Dial) that prevents the phone from dialing an owner-defined list of phone numbers between the hours of midnight and 6:00 A.M. The new phone model has a target price of $380. Management requires a 25% profit on new product revenues.
Required:
a. Calculate the amount of desired profit.
b. Calculate the target cost.
Answer:
1. $95
2. $285
Explanation:
1) Calculate the desire profit of the company
25% profit on Product revenue
Desired Profit=Target price*25%
=380 * 0.25
= $95
The desire profit of the company is $95
2) Calculate the target cost
Total Sales Price $380
Less: Desired profit ($95)
Target cost $285
Two partners, Small and Big, form a partnership in which Small invested $40,000 and Big invested $60,000 for a total capital of $100,000. But Small devotes more time to the business and earns more from the firm. They have agreed to share the profits as follows:
1. The first $20,000 is allocated on the partner's capital balances.
2. The next $30,000 is allocated based on service: Small gets $20,000, and Big gets $10,000.
3. Any remaining profits are allocated equally.
4. The partnership's net income is $100,000.
Requried:
a. What is Small's portion of the net income?
b. What is Big's portion of the net income? Make the entry for this allocation.
c. What would be the right parts to the journal entry for this question?
Answer:
a. What is Small's portion of the net income?
$53,000b. What is Big's portion of the net income? Make the entry for this allocation.
Big's portion = $47,000Dr Income Summary 47,000 Cr Big, capital 47,000c. What would be the right parts to the journal entry for this question?
Debit Income summary and credit capital accountsExplanation:
partnership's net income $100,000
first $20,000
Small $8,000Big $12,000next $30,000
Small $20,000Big $10,000Remaining $50,000
Small $25,000Big $25,000total Small = $53,000
total Big = $47,000
Another bank is also offering favorable terms, so Rahul decides to take a loan of $12,000 from this bank. He signs the loan contract at 5% compounded daily for 12 months. Based on a 365-day year, what is the total amount that Rahul owes the bank at the end of the loan's term
Answer:
$12,615.21
Explanation:
we need to determine the future value of the loan:
future value = present value x (1 + interest rate)ⁿ
present value = $12,000n = 365 days (compounded daily)interest rate = 5% / 365 days = 0.05/365 = 0.000136986future value = $12,000 x (1 + 0.000136986)³⁶⁵ = $12,000 x 1.051267496 = $12,615.21
When longer-term employees' salaries are lower than those of workers entering the firm today, ______ has occurred.
Answer: Salary compression
Explanation:
Salary compression is a situation that occurs when there is a negligible differences in pay between the workers in an organization despite the experience and skills level.
It usually occurs when the pay of the current employees that are working with a company does not keep up with the rise in market pay rate thereby giving rise to a situation whereby new employees are employed at a identical pay or better pay to those that have been at the organization.
Corporation is expected to pay the following dividends over the next four years: $13, $9, $8, and $3.50. Afterward, the company pledges to maintain a constant 5 percent growth rate in dividends forever. If the required return on the stock is 12 percent, what is the current share price?
Answer:
Price of share $ 59.747
Explanation:
The Dividend Valuation Model(DVM) is a technique used to value the worth of an asset. According to this model, the value of an asset is the sum of the present values of the future cash flows would that arise from the asset discounted at the required rate of return.
This model would be applied as follows:
PV of dividend from Year 1 to Year 4
(13× 1.12^-1) + (9× 1.12^-2 ) + ( 8 ×1.12^-3 ) + (3.50 ×1.12^-3 )= 26.38
PV of dividend from year 5 and beyond
This will be done in two steps
PV in year 4 terms
PV = D× (1+g)/ke- g
D- 3.50, g- 5%, ke- 12%
PV = 3.50× 1.05/ (0.12- 0.05)
PV = 52.5
PV in year 0 terms
52.5 × 1.12^(-4)= 33.36469912
Total PV = 26.38 + 33.36 = 59.747
Price of share $ 59.747
Loster Company reported a net loss of $17,017 for the year ended December 31. During the year, accounts receivable decreased by $7,476, inventory increased by $5,997, accounts payable increased by $15,357, and depreciation expense of $5,495 was recorded. What was the net cash used for or provided by operating activities during the year
Answer:
The answer is $5,314
Explanation:
Net loss ($17,017)
Add back:
Depreciation expense. $5,495
($11,522)
Changes in working capital:
Decrease accounts receivable $7,476
Increase Inventory. ($5,997)
Increase accounts payable. $15,357
Net cash provided by operating activities. $5,314
Companies increasingly strive to achieve the ______ performance when formulating their corporate strategy.
Answer:
triple bottom line
Explanation:
Companies increasingly strive to achieve the triple bottom line performance when formulating their corporate strategy. The triple bottom line (TBL) is a framework used in business that focuses on equally on social/environmental concerns as well as profits, thus creating three equal points of interest (bottom lines) which are profit, people, and the environment. This leads to a successful and balanced company.
The core CPI looks at the price changes of a market basket without Select one: a. luxury goods b. taxes c. food and energy d. imported goods
Answer:
The correct answer is the option C: food and energy.
Explanation:
On the one hand, the concept known as "Consumer Price Index" or CPI is refered to the measure that is basically used in economics in order to obtain the variation of prices in general that happens in a certain period of time, so that means that it focus in calculating the inflation of an economy by examinating the weighted average of prices of a basket of predetermined goods.
On the other hand, the "Core CPI" calculates the inflation in the costs of goods and services of a predetermined basket by does not include the ones from the food an energy sectors.
When organizations, in an attempt to prevent _____ asks customers to not enter characters but instead select them one by one from boxes, intruders may counter with
Answer: a. keyloggers, screen scrapers
Explanation:
When organizations, in an attempt to prevent keyloggers asks customers to not enter characters but instead select them one by one from boxes, intruders may counter with screen scrapers
Keyloggers is a program that allows another person to record the keys struck on a keyboard without the person typing knowing. The person recording can them compile the information to find out very confidential information. By asking customers to select characters this can be mitigated.
Screen Scrapers on the other hand are more lethal because they record that is being displayed on a screen and transmit it to another person thereby enabling them to see what the target is doing even if they select characters from boxes.
The nominal interest rate is 9 percent in Brazil and 6 percent in Japan. Applying the international Fisher effect, the Brazilian real should
Answer:
appreciate by 3%
Explanation:
the international fischer effect states that the difference between the nominal interest rate of two countries is equal to the changes in the exchange rate of their currencies.
the country with the lower interest rate appreciates by the difference between the exchange rate.
9% - 6% = 3%
the Brazilian real should appreciate by 3%
Sebastian purchases two pieces of equipment for $189,000. Appraisals of the equipment indicate that the fair market value of the first piece of equipment is $132,300 and that of the second piece of equipment is $207,900. What is Sebastian's basis in these two assets? If required, round your interim calculations to two decimal places. Use rounded amounts in subsequent computations. If required, round final answers to the nearest dollar. Sebastian's basis for the first piece of equipment is $ and $ for the second piece of equipment.
Answer:
Sebastian basis in first piece of assets is $73,500 and second piece of assets is $115,500
Explanation:
Calculation of the total fair market value
Total fair market value = Fair market value of first piece of equipment + Fair market value of second piece of equipment
Total fair market value = $132,300 + $207,900
Total fair market value = $340,200
Therefore, the total fair market value is $340,200.
Calculation of Sebastian “S” basis in assets:
“S” basis in assets in first piece of assets = Fair market value of first piece of equipment / Total fair market value * Purchase cost
= $132,300 / $340,200 * $189,000
= $73,500
“S” basis in assets in second piece of assets = Fair market value of second piece of equipment / Total fair market value * Purchase cost
= $207,900 / $340,200 * $189,000
= $115,500
“S” basis in first piece of assets is $73,500 and second piece of assets is $115,500.
Bonds owned by investors whose names and addresses are recorded by the issuing company, and for which interest payments are made with checks or cash transfers to the bondholders, are called:
Answer: Registered Bonds
Explanation:
A registered bond is one that has the owner's name and contact information recorded by the issuer so as to ensure that interest payments depending on the bond terms are rightly given out and also to track claims to coupons.The two ways bonds can be registered and transferred
1. Physically by printing owners details at the back of the certificate and BY signing or endorsing a certificate during transfer of bonds,
2. Electronically bY recording on a system database for ownership claim and for transfer of bonds.
The opposite of a Registered bond is a Bearer bond, Here, the owner"s details and information are not recorded.
Assume that the demand curve for MP3 players shifts to the right and the supply curve for MP3 players shift to the left, but the supply curve shifts more than the demand curve. As a result:________
a. both the equilibrium price and quantity of MP3 players will decrease.
b. the equilibrium price of MP3 players will decrease; the equilibrium quantity will increase.
c. the equilibrium price of MP3 players may increase or decrease; the equilibrium quantity will decrease.
d. the equilibrium price of MP3 players will increase; the equilibrium quantity will decrease.
Answer:
The correct answer is the option D: the equilibrium price of MP3 players will increase; the equilibrium quantity will decrease.
Explanation:
First of all, the supply and demand curves are the graphical representation of the price and the quantity demanded and supplied respectively in each case. Moreover, in the graphic when both curves are in equilibrim that means that there is a single point in where the price and the quantity are established together for the market. Furthermore, when there is a shift of any curve that point will be changed so when there is a shift in the demand curve to the right the price will increase and the quantity will increase but if there is a shift in the supply change to the left and that shift is greater then the price will increase but the quantity will decrease.
Tru-U stock is selling for $41 a share. A 6-month call on Tru-U stock with a strike price of $45 is priced at $1.60. Risk-free assets are currently returning .29 percent per month. What is the price of a 6-month put on Tru-U stock with a strike price of $45?
Answer:
$4.82
Explanation:
Calculation for the price of the 6-month put on Tru-U stock
To find the price of a 6-month put on Tru-U stock with a strike price of $45 we are going to use Put-call parity formula to calculate it
Using this formula
Put-call parity: S + P = C + PV(E) P
Let plug in the formula
Put-call parity= $1.60 + ($45 / 1.0029^⁶) - $41 = Put-call parity=$1.60+($45/1.01752)-$41
Put-call parity=$1.60+(44.22517)-$41
Put-call parity=$45.82517-$41
Put-call parity=$4.82
Therefore the price of a 6-month put on Tru-U stock with a strike price of $45 will be $4.82
The Internal Rate of Return (IRR) represents which of the following: Multiple Choice The discount rate that must be lower than the required rate of return. The discount rate that makes the net present value equal to zero. The discount rate that makes the net present value positive. The discount rate that makes the net present value negative. The discount rate that is affected by the cash flows external to the project.
Answer:
The discount rate that makes the net present value equal to zero.
Explanation:
The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.
It is the discount rate that makes the net present value equal to zero.
I hope my answer helps you
Joseph contributed $25,750 in cash and equipment with a tax basis of $14,800 and a fair market value of $19,500 to Berry Hill Partnership in exchange for a partnership interest.a. What is Joseph’s tax basis in his partnership interest?b. What is Berry Hill’s basis in the equipment?
Answer:
a. Joseph’s tax basis in his partnership interest=$40,550
b. Joseph contributed equipment with a tax basis of $14,800, therefore, Berry Hill’s basis in the equipment is $14,800
Explanation:
a. In order to calculate Joseph’s tax basis in his partnership interest we would have to make the following calculation:
Joseph’s tax basis in his partnership interest=amount contributed in cash+tax basis equipment
According to given data:
amount contributed in cash=$25,750
equipment tax basis =$14,800
Therefore, Joseph’s tax basis in his partnership interest=$25,750+$14,800
Joseph’s tax basis in his partnership interest=$40,550
Joseph's tax basis in his partnership interest is $40,550
b. According to the given data Joseph contributed equipment with a tax basis of $14,800, therefore, Berry Hill’s basis in the equipment is $14,800
21. Find the present values of these ordinary annuities. Discounting occurs once a year. a. $400 per year for 10 years at 10%. b. $200 per year for 5 years at 5% c. $400 per year for 5 years at 0% d. Rework parts a-c assuming they are annuities due.
Answer:
a.
PV = $2457.826842 rounded off to $2457.83
b.
PV = $865.8953341 rounded off to $865.90
c.
PV = $400
d.
PV = $2703.609527 rounded off to $2703.61
PV = $909.1901008 rounded off to $909.19
PV = $400
Explanation:
An annuity is a series of cash flows that are constant, that occur after equal interval of time and that are for a defined period of time.
An ordinary annuity is the one whose cash flows occur at the end of the period. While an annuity due is the one whose cash flows occur at the start of the period. The formula for the present value of both the ordinary and the due annuity are attached.
a.
PV = 400 * [(1 - (1+0.1)^-10) / 0.1]
PV = $2457.826842 rounded off to $2457.83
b.
PV = 200 * [(1 - (1+0.05)^-5) / 0.05]
PV = $865.8953341 rounded off to $865.90
c.
PV = 400 * [(1 - (1+0.0)^-5) / 0.0]
PV = $400
d.
PV = 400 * [(1 - (1+0.1)^-10) / 0.1] * (1+0.1)
PV = $2703.609527 rounded off to $2703.61
PV = 200 * [(1 - (1+0.05)^-5) / 0.05] * (1+0.05)
PV = $909.1901008 rounded off to $909.19
PV = 400 * [(1 - (1+0.1)^-10) / 0.1]
PV = $400
Currently, a U.S. trader notes that in the 6-month forward market, the Japanese yen is selling at a premium (that is, you receive more dollars per yen in the forward market than you do in the spot market), while the British pound is selling at a discount. Which of the following statements is correct?
a) If interest rate parity holds among the three countries, the United States should have the highest 6-month interest rates and Britain should have the lowest rates.
b) If interest rate parity holds among the three countries, the United States should have the highest 6-month interest rates and Japan should have the lowest rates.
c) If interest rate parity holds among the three countries, Japan should have the highest 6-month interest rates and Britain should have the lowest rates.
d) If interest rate parity holds, 6-month interest rates should be the same in the U.S., Britain, and Japan.
e) If interest rate parity holds among the three countries, Britain should have the highest 6-month interest rates and Japan should have the lowest rates.
Answer:
Hence correct answer is option e) If interest rate parity holds among the three countries, Britain should have the highest 6-month interest rates and Japan should have the lowest rates.
Explanation:
can someone tell me how this "attain" amount is calculated PS3 price is 299$ PS3 sold are 11.25 Million per unit total cost is 260.89 $ profit is 38.11 $ Attain = 428.74 do u know how this 'attain' amount is calculated
Answer:
IDK which I need also
Explanation:
....................................................
Answer:
I'm in middle school, sorry mate.
Explanation:
n preparing a company's statement of cash flows for the most recent year using the indirect method, the following information is available: Net income for the year was $52,000 Accounts payable decreased by 18,000 Accounts receivable increased by 25,000 Inventories increased by 5,000 Depreciation expense was 30,000 Net cash provided by operating activities was:
Answer:
$34,000
Explanation:
Calculation for the Net cash provided by operating activities
Net income 52,000
Adjustments :
Add Depreciation expense 30,000
Less Decrease in Accounts payable (18,000)
Less Increase in accounts receivables (25,000)
Less Increase in inventories (5,000)
Net cash provided by operating activities $34,000
Therefore Net cash provided by operating activities was: $34,000
Determine the uniform annual value for the cash flow below at an interest rate of 11% per year.
Year 0 1 2 3 4 5 6 7 8 9
Cash Flow, 0 $ 30,000 30,000 30,000 30,000 45,000 45,000 45,000 45,000 45,000
a. $38,474
b. $37,744
c. $36,595
d. $39,595
Answer:
$36,595
Explanation:
The computation of the uniform annual value is shown below:;
Before that we need to find out the present worth which is
= $30,000 × (P/A , 11%, 4) + $45,000 × (P/A , 11%, 4) × (P/F , 11%, 4)
= $30,000 × (3.1025) + $45,000 × (3.69590) (0.65873)
= $202,630.51
Now the annual worth is
= Present value × (A/P, 11%,9)
= $202,630.51 × 0.18060
= $36,595
At an output level of 6,000 units, you have calculated that the degree of operating leverage is 2.3. The operating cash flow is $12,000 in this case. a. Ignoring the effect of taxes, what are fixed costs
Answer: $15,600
Explanation:
The following information can be gotten from the question:
Output level = 6,000 units
Degree of operating leverage = 2.3
Operating cash flow = $12,000
Contribution margin = Degree of operating leverage × Operating cash flow
= 2.3 × $12,000
= $27,600
Fixed cost = contribution margin - Operating cash flow
= $27,600 - $12,000
= $15,600
The jewelry department has an initial markup of 55.6%, with total retail reductions of 15%. There are no alteration costs or cash discounts. What is the maintained markup percentage and the gross margin percentage
Answer:
Maintained markup percentage = 48.9%
Gross margin percentage = 48.9%
Explanation:
Given:
Initial markup = 55.6%
Total retail reductions = 15%
To find the maintained markup percentage use the formula below:
%MMU = Initial MU% - Retail reductions% (100% - Initial MU%)
Substitute figures:
%MMU = 55.6% - 15% (100% - 55.6%)
= 55.6% - 15% (44.4%)
= 55.6% - 6.66%
= 48.9%
Therefore, the maintained markup percentage = 48.9%
To find the gross margin percentage, use the formula below:
GM% = (Net sales - Total cost of goods) /Net sales
We can also use this formula below to find the maintained markup percentage:
MMU% = (Net sales - Gross cost of goods) /Net sales
But we are told that there are no alteration costs or cash discounts here. Therefore the gross cost is the same as the total cost of goods.
This means that the mantained markup percentage and the gross margin percentage are equal.
GM% = 48.9%
Mobile visual search (MVS) apps generate graphic images that are superimposed on pictures of real things (e.g., people, rooms, buildings, roads, and so on). For instance, a mobile phone user might point her phone camera at an office building and activate an app that generates the logos of all foodservice outlets (e.g., Starbucks, Subway, McDonalds) inside the building. True or False
Answer: False
Explanation:
Mobile Visual Apps were made.more along the lines of linking different content from a single picture. For instance, a single picture of a logo could link the user to the social media pages, products and other content belonging to the owner of the logo.
The product described in the text above is ' Augmented Reality '.