Answer:
Yes, I agree that Competition in quality and service may be just as effective as price competition in giving buyers more for their money.
Explanation:
Price competition is one of many ways that a product or service can compete in the marketplace with consumers choosing affordability over quality. Consumers make purchases mostly on the basis of which is cheaper.
Competitive pricing is used more by businesses selling similar products, since services can vary from business to business, while the attributes of a product remain similar.
monopolistically competitive firms such as hotels frequently prefer non-price competition because they do not want consumers to choose affordability over quality which is usually more expensive.
Competition in quality and service can be as effective as price competition in giving buyers more for their money. Monopolistically competitive firms prefer non-price competition to differentiate their products and attract customers.
Explanation:Non-price competition is a strategy in which businesses compete by factors other than price, such as quality, innovation, branding, or customer service. Instead of lowering prices, they seek to differentiate their products or services to attract and retain customers.
Yes, I agree that competition in quality and service can be just as effective as price competition in providing value to buyers. In monopolistically competitive industries, firms often prefer to compete through non-price competition because they can differentiate their products and services. This allows them to attract customers based on factors other than price, such as product features, customer service, and brand reputation.
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At December 31, 2012, Destin Sports Equipment had 200,000 common shares issued and outstanding. On May 31, 2013, Destin issued a 15% stock dividend. Fully vested, incentive stock options issued in 2011 and exercisable for 40,000 shares (adjusted for the stock dividend) were outstanding at the end of 2013, with an exercise price of $40 per share. The market price of Destin’s common stock averaged $50 per share during 2013. Also outstanding since 2007 were $100,000 of 10% bonds issued at face value and convertible into 30,000 common shares. Destin’s tax rate is 40% and 2013 net income was $550,000.
__ 2. What is Destin’s 2013 basic earnings per share? b. $2.39
__ 3. What is Destin’s 2013 diluted earnings per share? a. $2.07
Answer:
2. Basic Earning per share = 2.39
3. Diluted earnings per share = 2.07
Explanation:
2.
Calculation of Weighted Average No. of Equity Shares Outstanding
Particular Portion Shares Calculations Weighted
of year outstanding Average
during time Impact
interval.
Shares 12 months 200000 12/12*200000 200000
Outstanding
1 Jan-31 Dec
15% Stock 12 months 30000 12/12*30000 30000
Total 230000
Basic Earning per share= Income available to common share
holders/Weighted average no of shares
Net Income 550000
Income available to common share holders 550000
Weighted Average no. of shares 230000
Basic Earning per share = 2.39
3.
Diluted Earning Per Share =Earning for Equity share holders after effects of Dilutive Potential Equity Shares/ Weighted
Average No of O/SEquity after effects of Dilutive Potential Equity Shares
Potential Equity Shares= ESOP-(ESOP*(Exercise Price/ Market Price))
ESOP 40000
Exercise Price 40
Market Price 50
Potential Equity Shares 8000
Time Portion Shares Calculations Weighted
Interval of year outstanding Average
during time Impact
interval
Shares 12 months 200000 12/12*200000 200000
Outstanding
1 Jan-31 Dec
15% Stock 12 months 30000 12/12*30000 30000 Dividend
Potential Equity 8000 8000
Shares (ESOP)
Debentures 30000 30000
Total 268000
Diluted EPS
Earning for Equity Share holders 550000
Incremental EPS 100000*10%*(1-0.4) 6000
Total 556,000
Weighted average no of Equity Shares 268000
DEPS 2.07
(A) Prepare an individual income tax return.George Large (SSN 000-11-1111) and his wife Marge Large (SSN 000-22-2222) live at 2000 Lakeview Drive, Cleveland, OH 49001 and want you to prepare their 2017 income tax return based on the information below: George Large worked as a salesman for Toyboat, Inc. He received a salary of $80,000 ($8,500 of federal income taxes withheld and $1,800 of state income taxes withheld) plus an expense reimbursement from Toyboat of $5,000 to cover his employee business expenses. George must make an adequate accounting to his employer and return any excess reimbursement, none of the reimbursement was related to the meals and entertainment. Additionally, Toyboat provides George with medical insurance worth $7,200 per year. George drove his car a total of 24,000 miles during the year, and he placed the car in service on June 1, 2015. His log indicates that 18,000 miles were for sales calls to customers at the customers' offices and the remainder was personal mileage. George uses the standard mileage rate method. George is a college basketball fan. He purchased two season tickets for a total of $4,000. He takes a customer to every game, and they discuss some business before, during, and after the games. George also takes clients to business lunches. His log indicates that he spent $1,500 on these business meals. George also took a five-day trip to the Toyboat headquarters in Musty, Ohio. He was so well-prepared that he finished his business in three days, so he spent the other two days sightseeing. He had the following expenses during each of the five days of his trip: Airfare $200 Lodging $85/day Meals $50/day Taxicabs $20/day Marge Large is self-employed. She repairs rubber toy boats in the basement of their home. The total square footage of the Larges' home, including the basement, is 3,000 square feet. The portion of the basement used in Marge's business is 750 square feet. The business code is 811490. She had the following income and expenses: Income from rubber toy boat repairs $15,000 Cost of supplies 5,000 Contract labor 3,500 Telephone (business) 500 The Larges use the simplified method to figure their deduction for Marge's business use of their home. The Larges incurred the following total other expenses: Real estate taxes 2,500 Mortgage interest 4,500 Cash charitable contributions 3,500 Prepare Form 1040, Schedules A, C, and SE for Form 1040, and Form 2106 for the 2017 year. (Assume no depreciation for this problem and that no estimated taxes were paid by the Larges.)(B) In addition to the preparation of the individual income tax return for this topic, write a 300-500-word paper in which you address the following ethical issues associated with tax preparation:1. Discuss the legal and ethical aspects of accurately reporting income on tax returns using Circular 230 as published by the Department of Treasury (located in Topic Materials). Discuss one item in Section B on Duties and Restrictions and the consequences to tax preparers if they fail to adhere to the guidelines as provided by the Department of Treasury.2. Compare and contrast the concepts of "tax avoidance" and "tax evasion".3. (Optional) You are welcome to add a discussion about how ethics in taxation can correlate to the Christian worldview. In other words, what guidance from a Biblical perspective could be applied to the preparation of tax returns for clients?Prepare this assignment according to the APA guidelinesApply basic legal, tax, and ethical concepts to issues in financial reporting.
Answer:
Explanation:
prepare from 1040 to disclose Income and respective Tax
FORM 1040
Amount ($)
Salary Received 80,000
Business Income- Wn1) 2,789
Total Income 82,789
Less - Itemized wise Deduction-Wn2 21,405
Total Income 61,384
Standard deduction 11,900
Total Taxable Income 49,484
tax
From 0-$17400 10% 1,740
From $17400-$70700 15% 4,813
Total Tax Liability 6,553
Schedule A
wn2
Real Estate Tax 2,500
Interest on Mortgage 4,500
Gifts to Charity 3,500
Unreimbursed Job Expeses(FORM 2106) 10,905
Total Itemized wise Deduction 21,405
wn1
Income from rubbery toy boat 15,000
Less cost
Cost of suppies 5000
Business phone call 3500
Cost of suppies 500
Total 9000
Total Business Income 6,000
Less- FORM 8829 Expeses 3211
Business Income- 2,789
FORM 2106
Car expenses 9990
Travelling Expense 665
Meal Expenses 5500
Total 10655 5500
Less Reimbursement 5000
Total 10655 500
Expenses Allowed 10655 250
Total 10905
FORM 8829
25% is used for Business
Income from buisness 6000
Mortgage Interest' -1125
Reat estate tax -625
Utility Bills -500
Depreciation -961
Total Business Income 2789
Calculate depreciation
Lesser of fair market value or adjusted cost 1,70,000
Less - value of Land -20,000
Total 1,50,000
Basis of building 37,500
rate of depreciation 2.56%
960
. Terry purchases an annuity with payments made at the beginning of each month for 36 payments. The monthly payments are a constant amount of 15 per month for the first 24 payments. The 25th payment is 20, 26th is 25, the 27th payment is 30, and the arithmetic sequence continues for the rest of the payments. The nominal annual interest rate is 6% convertible monthly. What is the present value of the annuity
Answer:
The present value of the annuity is $ 825.02
Explanation:
The present value of the annuity is the today's worth of the thirty annuity payments.
Each of the annuity payment is multiplied by its discount factor,for instance the discount factor for the first payment is computed thus
=$15*(1/(1+6%/12)^1=$14.93
The 6% interest rate is divided by 12 months to show a monthly rate of return find attached.
The Top Hat Division of Blandon's Fine Menswear had the following results last year (in thousands). Sales $ 5 comma 100 comma 000 Operating income $ 510 comma 000 Total assets $ 3 comma 000 comma 000 Current liabilities $ 270 comma 000 Management's target rate of return is 23% and the weighted average cost of capital is 13%. What is the Top Hat Division's capital turnover?
Answer:
1.5
Explanation:
The computation of the capital turnover is shown below:
Capital turnover = Sales ÷ Total assets
where,
Sales is $5,100,000
And, the total assets is $3,000,000
So, the capital turnover is
= $5,100,000 ÷ $3,000,000
= 1.5
By dividing the sales from the total assets we can get the capital turnover and the same is shown above
In April 2017, PetSmart agreed to make the largest e-commerce acquisition in history to date, putting a deal in place to snatch up fast-growing pet food and product site Chewy. com for $3.35 billion. The acquisition premium for this particular deal can be calculated as the amount by which the price PetSmart offered for Chewy.com exceeded the _______.A. amount paid as a down payment for Chewy.com that was to be held in escrow until closing.B. difference between the amount that was offered for Chewy.com and the amount that was held in escrow to complete the deal.C. preacquisition market value of Chewy.com.D. fair market value of similar companies in the same geographic locale as Chewy.com.E. comparable value of similar companies to Chewy.com within the same market.
Answer: C. preacquisition market value of Chewy.com.
Explanation:
The Acquisition Premium that a company that is acquiring another pays is generally the Amount that that was paid minus the amount that the company being acquired was worth before it was purchased.
For Instance, assuming Chewy.com was valued at $3.25 billion before the Acquisition by PetSmart then the Acquisition Premium is,
= $3.35 billion - $3.25 billion
= $100 million.
In the balance sheet, this premium will more often than not be recorded as Goodwill which is defined as an Intangible Asset that is generated when a company buys another company for more than it is worth. That incremental value is the Goodwill.
Final answer:
The acquisition premium for PetSmart's acquisition of Chewy.com can be calculated by comparing the purchase price offered to Chewy.com's preacquisition market value, which is the company's value before the acquisition bid. The correct option is (C).
Explanation:
The acquisition premium for the deal where PetSmart agreed to acquire Chewy.com can be calculated as the amount by which the price PetSmart offered for Chewy.com exceeded the preacquisition market value of Chewy.com.
The preacquisition market value refers to the valuation of a company before any acquisition-related premiums are added. This is significant because it provides a baseline for the original worth of the company prior to any speculation or negotiation that may drive up its price during a takeover bid.
Acquisition premiums are thus the extra amount that buyers are willing to pay over and above this original preacquisition value to gain control of the company.
n investor is considering a $10,000 investment in a start-up company. She estimates that she has probability 0.39 of a $23,000 loss, probability 0.24 of a $8700 profit, probability 0.12 of a $31,000 profit, and probability 0.25 of breaking even (a profit of $0). What is the expected value of the profit? Would you advise the investor to make the investment? Part: 0 / 20 of 2 Parts Complete
Answer:
The expected profit is -$13,162.
I would not recomend the investor to make this investment.
Explanation:
The expected profit can be calculated multypling the probabilities of every outcome and the profit of each outcome, and substracting the total invevstment.
The outcomes are:
1) probability 0.39 of a $23,000 loss,
2) probability 0.24 of a $8700 profit,
3) probability 0.12 of a $31,000 profit, and
4) probability 0.25 of breaking even
NOTE: It is assumed that the outcomes does not include the initial investment.
Then, the expected profit of this investment is:
[tex]E(P)=[0.39*(-23,000)+0.24*8,700+0.12*31,000+0.25*0]-10,000\\\\E(P)=[-8,970+2,088+3,720+0]-10,000\\\\E(P)=-3,162-10,000\\\\E(P)=-13,162[/tex]
Answer:
company b
Explanation:
Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each month, as if it uses a periodic inventory system. Assume Oahu Kiki’s records show the following for the month of January. Sales totaled 260 units. Date Units Unit Cost Total Cost Beginning Inventory January 1 100 $ 75 $ 7,500 Purchase January 15 360 95 34,200 Purchase January 24 240 115 27,600 Required: Calculate the number and cost of goods available for sale. Calculate the number of units in ending inventory. Calculate the cost of ending inventory and cost of goods sold using the (a) FIFO, (b) LIFO, and (c) weighted average cost methods.
The number of goods available for sale is 700 units, and the cost of goods available for sale is $69,300. The units in ending inventory are 440 units. The cost of ending inventory and cost of goods sold (COGS) can be determined using the FIFO, LIFO, and weighted average cost methods.
Explanation:Firstly, to find the number of goods available for sale, we add the beginning inventory and the purchases made throughout January. Hence, 100 (Beginning inventory) + 360 (First purchase) + 240 (Second purchase) = 700 units. The cost of goods available for sale is the sum of the total costs, which is $7,500 (from beginning inventory) + $34,200 (from first purchase) + $27,600 (from the second purchase) = $69,300.
Units in ending inventory can be calculated by subtracting the units sold from the number of goods available for sale, which gives 700 (Goods available for sale) - 260 (Units sold) = 440 units.
Now let's calculate ending inventory and cost of goods sold (COGS) using the FIFO, LIFO, and Weighted Average cost methods:
FIFO (First-In-First-Out): Under this method, the cost of the oldest inventory (first-in) is charged to cost of goods sold (COGS) first. And, the remaining inventory (ending inventory) is valued at the cost of the newest purchases (last-in). LIFO (Last-In-First-Out): As opposed LIFO method charges the most recent purchases (last-in) to COGS first. Ending inventory is valued at the cost of the oldest inventory units (first-in).Weighted Average cost method: This method takes a simple average of all units available during the period and uses that average cost to determine ending inventory and COGS. To get the weighted average cost per unit, you divide the cost of goods available for sale by the number of units available for sale, which would give: $69,300/700 units = $99 per unit.Learn more about Inventory Costing Methods here:https://brainly.com/question/17097250
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The number and cost of goods available for sale for Oahu Kiki are 700 units and $69,300 respectively. Using FIFO, LIFO, and weighted average methods, different values for the ending inventory and cost of goods sold can be calculated. The number of units in ending inventory is 440 units.
Explanation:Calculating Inventory and Cost of Goods SoldTo calculate the number and cost of goods available for sale, we add the beginning inventory to the purchases made during the month. Oahu Kiki's beginning inventory is 100 units at $75 each, totaling to $7,500. On January 15, they purchased 360 units at $95 each, totaling $34,200, and on January 24, they purchased 240 units at $115 each, totaling $27,600.
The goods available for sale is the sum of these amounts:
Goods available for sale = Beginning Inventory + Purchases = $7,500 + $34,200 + $27,600 = $69,300.
The total units available for sale are:
Total units = 100 + 360 + 240 = 700 units.
To find the ending inventory and cost of goods sold (COGS), we calculate as per FIFO, LIFO, and weighted average cost methods:
Since sales totaled 260 units, the ending inventory would be:
Ending inventory units = Total units - Sold units = 700 units - 260 units = 440 units.
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The Communication Process The Communication Process model describes how communications move from the firm to the consumer and which factors affect the way the consumer perceives the message. This activity is important because as the number of communication media has increased, the task of understanding how best to reach target consumers has become far more complex. The goal of this activity is to recognize how each component of the communication process model interacts with each other and to understand what the consumer experience is at each step of the communication process. First, read the brief scenario about how Target reaches the right consumers. Then, match the communication action to the correct component of the communication process model. Target is a discount retailer that operates nearly 1,750 stores in 49 states. Target differentiates itself from its competitors by offering more upscale, trend-forward merchandise at low prices. The store is planning a Back-to-School sale aimed at moms with school-aged children going back to school; these women make the majority of their household purchases. Target works with its advertising agency to develop a message to reach the right consumers and to motivate them to take action. The message could be communicated on television or radio, or in print advertisements, and the choice must be appropriate for the target market. Since Target aims to reach bargain shoppers, it decides to advertise in the sales flyers of local papers. When the papers come out, Target's advertising director sees that Walmart (Target's major competition) has run similar ads promoting a sale at the same time. Fortunately, this has no effect on Target's campaign. As expected, a significant number of Target customers like Melissa, a mom of two school-aged children, saw the ad and headed straight to Target. In fact, significantly more consumers than usual visited Targets all around the country during the sale. Match the elements of a consumer's experience to each step of the communication process. Ad runs on local Sunday newspaper Store traffic increases Advertising agency creates print ad Target creates a Back-to-School campaign Melissa buys the paper and plans to go shopping for her children's supplies Sender Transmitter Encodes Communication Channel Receiver Decodes Feedback
Answer and explanation:
Sender: Target creates a Back-to-School Campaign
Transmitter Encodes: Advertising agency creates print ad
Communication Channel: Ad runs on local Sunday newspaper
Receiver Decodes: Melissa buys the paper and plans to go shopping for her children's supplies
Feedback: Store traffic increases
Target is the maker of the Campaign and intends to create an advertisement to communicate its offering hence it is the Sender. The Advertising agency, upon Target’s intentions, create the print ad, hence encodes the same as Transmitter. The channel of communication so chosen is that of the Newspaper hence ad runs on Sunday newspaper. The receiver is the target audience, here, Melissa who decodes and acts upon the same by going for shopping for her children’s supplies. The feedback is given by way of increase in Store traffic by the Target audience.
Answer:Sender: Target creates a Back-to-School Campaign
Transmitter Encodes: Advertising agency creates print ad
Communication Channel: Ad runs on local Sunday newspaper
Receiver Decodes: Melissa buys the paper and plans to go shopping for her children's supplies
Feedback: Store traffic increases
Any event that increases the supply of British pounds to be exchanged for U.S. dollars should result in a(n) ____ in the value of the British pound with respect to ____, other things being equal. a. decrease; nondollar currencies b. increase; U.S. dollar c. decrease; U.S. dollar d. increase; nondollar currencies
Answer:
Option (C) is correct.
Explanation:
If there is an increase in the supply of British pounds then as a result the demand for British pounds decreases as there are enough supply of British pounds available in the market. So, if any investor wants to exchange US dollars for British pounds then they need to pay more for each dollar obtained as the supply of the British pounds is large.
This will reduce the value of British pounds with respect to the value of United States dollar.
The Medicine Chest Company keeps a small petty cash fund to handle small cash transactions. Because no one wants to volunteer to be the custodian, the business manager has decided that all employees should have access to the petty cash.
Answer and explanation:
Petty cash funds refer to a small number of money companies have, typically in each department, so the department can have immediate resources for the purchase of items with minimal costs such as office supplies. A ticket is usually registered for every expense to keep control of the expenditures until the petty cash fund runs out where the total expense is recorded in the accounting books of the firm.
In the case give, the fact that no representative of the department wants to be in charge of the petty cash fund reflects a weakness since there must be only one person controlling the outflows of the cash instead of having every employee reporting a ticket for each expense which could lead to the misuse of those funds.
The Rialto Theatre purchased a new projector costing $82,000 on January 1, 2018. Because of changing technologies, the projector is estimated to last four years after which it will be obsolete and have a salvage value of $4,000 as a collectors’ item. Compute the depreciation expense for 2018 using: a. The straight-line method b. Double-declining-balance method c Now assume that the asset is sold at the end of the second year (December 31, 2019) for $30,000, while the Double Declining Balance method is used.
Answer:
a. 19,500
b. $20,500
c. Gain of $9,500
Explanation:
a.
Straight Line depreciation is a method of depreciation in which the cost of the asset net of residual value is divided over useful life.
Depreciation rate = ( Cost - Salvage Value ) / useful life = ($82,000 - $4,000) / 4 = $19,500
Depreciation charged in 2018 = $19,500
Depreciation charged in 2019 = $19,500
Accumulate depreciation as on December 31, 2019 = $39,000
b.
In Double Declining method Accelerated depreciation is charged. The depreciation charged in this method is double of the charged in straight-line depreciation method.
Depreciation rate = 2 x (1/useful life) x100 = 2 x (1/4 years) x100 = 50%
50% will be charged to Book value of the projector.
Depreciation charged in 2018 = $82,000 x 50% = $41,000
Depreciation charged in 2019 = ( $82,000 - $41,000 ) x 50% = $20,500
Accumulate depreciation as on December 31, 2019 = $41,000 + $20,500 = $61,500
Book value as on December 31, 2019 = $20,500
c.
Sale proceeds = $30,000
Gain on sale = $30,000 - $20,500 = $9,500
There is a gain of $9,500 based on Double declining method
It recorded as follow
Dr. Cash $30,000
Dr.Accumulated Depreciation $61,500
Cr. Gain on sale $9,500
Cr. Projector $82,000
Depreciation expense for the projector in 2018 using the straight-line method is $19,500. Using the double-declining-balance method, the expense for 2018 is $41,000. If the projector is sold for $30,000 at the end of the second year, the depreciation for 2019 would be $20,500.
To calculate the depreciation expense for 2018 for the Rialto Theatre's new projector using the straight-line method, we follow this formula:
Annual Depreciation Expense = (Cost of the Asset - Salvage Value) / Useful Life
The cost of the asset is $82,000, the salvage value at the end of its useful life is $4,000, and its useful life is estimated at 4 years.
So, the calculation will be ($82,000 - $4,000) / 4 = $19,500 per year.
Therefore, the straight-line depreciation for 2018 is $19,500.
For the double-declining-balance method, the depreciation rate is double that of the straight-line rate, which would be 50% per year for an asset with a useful life of 4 years. However, this method applies the rate to the book value of the asset at the beginning of each year.
So for 2018, the calculation would be $82,000 x 50% = $41,000.
If the asset was sold at the end of the second year (December 31, 2019) for $30,000, we first need to calculate the depreciation for 2019:
Book value at the beginning of 2019 = $82,000 - $41,000 = $41,000
Depreciation for 2019 = $41,000 x 50% = $20,500
Book value at the end of 2019 before sale = $41,000 - $20,500 = $20,500
The sale price of $30,000 is higher than the book value, so the theatre would record a gain on the sale of the asset.
Gross domestic product requires a. borrowing, which requires sufficiently high interest rates to prevent free riders. b. investment, which requires borrowing, which requires sufficiently low interest rates to prevent free riders. c. investment, which requires borrowing, which requires a functioning loanable funds market. d. inflation equal to the nominal rate of interest, which means lending equals borrowing. e. borrowing, which requires the real rate of interest to be equal to inflation, which requires a functioning loanable funds market.
Answer: C. investment, which requires borrowing, which requires a functioning loanable funds market.
Explanation:
GDP is primarily used to gauge the health of a country's economy. It is the monetary value of all the finished goods and services produced within a country's borders in a specific time period and includes anything produced by the country's citizens and foreigners within its borders.
The Gross Domestic Product measures the value of economic activity within a country. Strictly defined, GDP is the sum of the market values, or prices, of all final goods and services produced in an economy during a period of time. ... GDP is a number that expresses the worth of the output of a country in local currency.
Store supplies still available at fiscal year-end amount to $2,050. Expired insurance, an administrative expense, for the fiscal year is $1,600. Depreciation expense on store equipment, a selling expense, is $1,575 for the fiscal year. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,100 of inventory is still available at fiscal year-end. 4. Compute the current ratio, acid-test ratio, and gross margin ratio as of January 31, 2018
Answer:
Current Ratio = 7.59
Acid test Ratio = 1.28
Gross margin ratio = (Gross profit)/(Total Revenue)
where gross profit = Sales- Cost Of Sales
Explanation:
The first ratio that we must calculate is the current ratio which is the measure of current assets and current liabilities which the formula is :
Current ratio = (current assets)/ (current liabilities)
which current assets are assets that are liquidated in 12 months or less which given here the store supplies balance of $2050 then further we have Inventory( Stock) balance at the year end of $10100
Then current liabilities are those liabilities that can be paid in 12 months or less of which here we are given expired insurance and an admin expense which means that these are Differed expenses which are a liability that will be paid off in the next accounting period which amount to $1600. Therefore the current ratio will be ; Current Ratio = ($2050+$10100)/($1600)
Current ratio = 7.59 correct to two decimal places.
The acid test ratio is calculated by adding up all the most liquid able assets over the total liabilities in the company. the formula is
Acid test ratio = (most liquidable assets)/(Total Liabilities)
Acid Test Ratio = ($2050)/($1600)
Acid Test Ratio = 1.28 correct to two decimal places
where the most liquidable asset is the store supplies and the total given liabilities are the one given for the expired insurance and an admin expense.
The last ratio is the gross margin ratio which is calculated by dividing he gross profit of a company by the total revenue a company gains which the formula is Gross Margin Ratio = (Gross profit)/(Total Revenue), where Gross profit = Sales - Cost of Sales. Then to find the Total Revenue which is the Gross Profit - Operating expenses.
Answer:
The Current Ratio = 7.59
The Acid test Ratio = 1.28
The Gross margin ratio = (Gross profit)/(Total Revenue)
where gross profit = Sales- Cost Of Sales:
Explanation:
The First step to take is to calculate the current ratio which is the measure of current liabilities and assets
The the formula is :
The ratio (Current) = (current assets)/ (current liabilities)
The current assets are assets that given here, the store supplies balance of $2050 then further we have Inventory( Stock) balance at the year end of $10100 or assets that are liquidated or in 12 months or less.
Then
The current liabilities are those liabilities that an admin expense which means that these are Differed expenses which are a liability that will be paid off in the next accounting period which amount to $1600 Or that can be paid in 12 months or lesser of which here we are given expired insurance and. Therefore the current ratio will be:
The Current Ratio = ($2050+$10100)/($1600)
Current ratio = 7.59 correct to two decimal places.
The acid test ratio is calculated by adding up all the most liquid able assets over the total liabilities in the company. the formula is given as,
The Acid test ratio = (most liquidable assets)/(Total Liabilities)
Which is,
Acid Test Ratio = ($2050)/($1600)
Acid Test Ratio = 1.28 correct to two decimal places
When the most liquidable asset is the store supplies and the total given liabilities are the one given for the expired insurance and an admin expense.
The last ratio is the gross margin ratio which is calculated by dividing he gross profit of a company by the total revenue a company gains
Therefore,
the formula is Gross Margin Ratio = (Gross profit)/(Total Revenue), where Gross profit = Sales - Cost of Sales. Then to find the Total Revenue which is the Gross Profit - Operating expenses.
Graham Potato Company has projected sales of $6,000 in September, $10,000 in October, $16,000 in November, and $12,000 in December. Of the company’s sales, 20 percent are paid for by cash and 80 percent are sold on credit. Experience shows that 40 percent of accounts receivable are paid in the month after the sale, while the remaining 60 percent are paid two months after. Determine collections for November and December.
Answer:
Instructions are below.
Explanation:
Giving the following information:
Sales:
September= $6,000
October= $10,000
November= $16,000
December= $12,000
Of the company’s sales, 20 percent are paid for by cash, and 80 percent are sold on credit.
Cash collection November:
Sales in cash= (16,000*0.2)= 3,200
Sales on account October= (10,000*0.8)*0.4= 3,200
Sales on account September= (6,000*0.8)*0.6= 2,880
Total cash collection= $9,280
Cash collection December:
Sales in cash= (12,000*0.2)= 2,400
Sales on account October= (10,000*0.8)*0.6= 4,800
Sales on account November= (16,000*0.8)*0.4= 5,120
Total cash collection= $12,320
The total collections for the Graham Potato Company in November are $6400 and in December are $10400, considering both the cash sales and the collections from receivables.
Explanation:To determine the collections for November and December, we should find out the cash collections and the collections from the receivables each month.
The Graham Potato Company gets 20 percent of its sales in cash, so in November, it collects 0.2 * $16,000 = $3200 in cash. In December, it collects 0.2 * $12,000 = $2400 in cash.
Next, we need to calculate the collections from the receivables. The company sells 80 percent of its sales on credit, and it collects 40 percent of that amount in the month after the sale and the remaining 60 percent two months after. So, the collections from October's sales (0.8 * $10,000) in November would be 0.4 * 0.8 * $10,000 = $3200. In December, it would collect the remaining 60% from October's sales and 40% from November's sales which will be: 0.6 * 0.8 * $10,000 + 0.4 * 0.8 * $16,000 = $8000.
Therefore, total collections for November is $3200 (cash) + $3200 (receivables) = $6400 and for December is $2400 (cash) + $8000 (receivables) = $10400.
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Create a Crow's Foot ERD for each of the following descriptions. (Note: The word many merely means "more than one" in the database modeling environment.)A. Each of the MegaCo Corporation's divisions is composed of many departments. Each department has many employees assigned to it, but each employee works for only one department. Each department is managed by one employee, and each of those managers can manage only one department at a time.B. During some period of time, a customer can rent many videotapes from the BigVid store. Each of the BigVid's videotapes can be rented to many customers during that period of time.C. An airliner can be assigned to fly many flights, but each flight is flown by only one airliner.D. The KwikTite Corporation operates many factories. Each factory is located in a region. Each region can be "home" to many of KwikTite's factories. Each factory employs many employees, but each of those employees is employed by only one factory.E. An employee may have earned many degrees, and each degree may have been earned by many employees.
Crow's Foot Entity Relationship Diagrams (ERDs) represent relationships between entities in a database. For each scenario, an ERD has been constructed: MegaCo with Division, Department and Employee entities; BigVid with Customer and Videotape entities; an airline scenario with Airliner and Flight entities; KwikTite with Factory, Region, and Employee entities; and a degree scenario with Employee and Degree entities.
Explanation:Creating Crow's Foot Entity Relationship Diagrams (ERDs) involves representing the relationships between entities in a database. Below are examples for each scenario presented:
A. For MegaCo Corporation, we'd have a 'Division' entity, 'Department' entity and 'Employee' entity. A Division is made up of many Departments, denoted by the crow's foot on the end towards the Department entity. Each Department has many Employees, but each Employee belongs to one Department, illustrated by the straight line towards the Employee. Also, each Department is managed by one Employee, and a Manager manages one Department at a time.
B. For BigVid, we have a 'Customer' entity and a 'Videotape' entity. A Customer can rent many Videotapes, represented by a crow's foot Videotape. Each Videotape can be rented by many Customers, shown by the crow's foot on the Videotape to the Customer line.
C. For the airliner scenario, we have 'Airliner' and 'Flight' entities. An Airliner can be assigned many Flights, but each Flight is flown by one Airliner.
D. For KwikTite, we have the entities 'Factory', 'Region', and 'Employee'. A Factory is in one Region, but a Region can have many Factories. A Factory employs many Employees, yet an Employee works for only one Factory.
E. For the degree scenario, there's an 'Employee' entity and a 'Degree' entity. An Employee can earn many Degrees and a Degree can be earned by many Employees.
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The bank statement contained two bank memoranda:1. A credit of $2,242.00 for the collection for Bogalusa Company of an electronic funds transfer.2 A debit for the printing of additional company checks $85.00.At November 30, the cash balance per books was $11,073.80 and the cash balance per bank statement was $17,712.50. The bank did not make any errors, but Bogalusa Company made two errors.
Answer:
Cash 2,157 debit
bank service expense 85 debit
account receivables 2,242 credit
Explanation:
To record the bank memorand:
The collection in behalf of the firm will increase cash
The new print the checks will be considered either miscellaneuos expense or bank service expense either way, will decrease cash.
Net cash variation: 2,242 - 85 = 2,157
For the Company errors another entry will be made looking for errors between our numebrs and the bank.
Summit Systems will pay a dividend of $ 1.48 one year from now. If you expect Summit's dividend to grow by 6.4 % per year, what is its price per share if its equity cost of capital is 10.2 %?
Answer:
$36.84
Explanation:
The computation of the price per share is shown below:
Price per share = (Dividend) ÷ (Equity cost of capital - growth rate)
where,
Dividend one year from now is $1.48
Equity cost of capital = 10.2%
And, the growth rate is 6.4%
So, the price per share is
= ($1.48) ÷ (10.2% - 6.4%)
= ($1.48) ÷ (3.8%)
= $36.84
The current zero-coupon yield curve for risk-free bonds is as follows: Maturity (years) 1 2 3 4 5 YTM 4.98 % 5.54 % 5.78 % 5.91 % 6.03 % What is the price per $ 100 face value of a two-year, zero-coupon, risk-free bond?
Answer:
The Current Value of Zero-Coupon Bond $89.78
Explanation:
Face Value = $100
Yield to Maturity = 5.54%
Maturity Years = 2 Years
The Current Value of Zero-Coupon Bond = Present Value of Face Value
= $100 x [PVIF 5.54%, 2 Years]
= $100 / (1 + r)ⁿ
= $100 / (1 + 0.0554)²
= $100 / 1.11387
= $89.78
The accountant at Cedric Company has determined that income before income taxes amounted to $7,000 using the FIFO costing assumption. If the income tax rate is 30% and the amount of income taxes paid would be $315 greater if the LIFO assumption were used, what would be the amount of income before taxes under the LIFO assumption?
Answer:
8050
Explanation:
he amount of income before taxes under the LIFO assumption would be:
8050 calculated as follows:
Income tax under FIFO: 7000*.30 = 2100
Income Tax under LIFO = 2100 + 315= 2415
Income before taxes under LIFO = 2415/.30 = 8050
n much of the United States and Canada, logging takes place in both privately owned and government-owned forests. a. Privately owned forests are: private, nonrival, and excludable. public, rival, and excludable. private, rival, and nonexcludable. private, rival, and excludable
Answer:
Private, rival and excludable.
Explanation:
Privately owned forests are having the following characteristics:
(i) Rival: If one person consumes a good then this will reduce the quantity of good available to others which means that less good is available to others for consumption.
(ii) Excludable: This characteristic states that owner of a good can restrict or exclude others from the consumption of a good.
Since it is a private forests, the owner restrict others to steals the logs from his property and this make it excludable. Therefore, these two features stated in the private forests indicating that it is a private good.
Answer:
Private, Rival, Excludable
Explanation:
Since the forests are privately owned, they are private goods.
Excludable goods are those which can be feasibly prevented to be used by non payers. The private forest is being excluded from access by private owners, for forest & its resources safety (no stealing). So, it is excludable.
Rival goods are those, whose consumption by a consumer reduces their availability to be used by other consumers. Logged woods or any other forest resources extracted by one consumer, reduces their available quantity for other forest users. So, it is rival.
On October 10, the stockholders’ equity of Sherman Systems appears as follows. Common stock–$10 par value, 95,000 shares authorized, issued, and outstanding $ 950,000 Paid-in capital in excess of par value, common stock 331,000 Retained earnings 1,048,000 Total stockholders’ equity $ 2,329,000 1. Prepare journal entries to record the following transactions for Sherman Systems. Purchased 7,300 shares of its own common stock at $48 per share on October 11. Sold 1,575 treasury shares on November 1 for $54 cash per share. Sold all remaining treasury shares on November 25 for $43 cash per share.
Answer:
Date Description DR CR
$ $
Oct 11 Treasury Stock 350,400
Cash 350,400
Being the purchse of teasury stock
Nov 1 Cash 85,050
Paid in Capital from Treasury stock 9,450
Treasury stock 75,600
Being the cash realized on the sales of Treasury
stock above cost
Nov 25 Cash 246,175
Paid in capital from Treasury stock 9,450
Retained earnings 19,175
Treasury Stock 274,800
Being the sales of Treasury stock below the cost
Explanation:
Sherman Systems' stock transactions including purchasing and selling of treasury shares, involve recording the cash flow and changes in the equity accounts such as Treasury Stock and Paid-in Capital from Treasury Stock.
Explanation:Understanding Stock Transactions and Shareholder Equity
The student is seeking to understand how to record journal entries for stock transactions involving treasury shares for Sherman Systems. Treasury shares are the company's own shares that it has reacquired. The transactions include purchasing treasury shares and then selling them at two different prices.
Purchase of Treasury Shares: On October 11, Sherman Systems purchased 7,300 of its own shares at $48 per share. The journal entry will be a debit to Treasury Stock (an equity account) and a credit to Cash, both for the total purchase amount of $350,400 (7,300 shares * $48 per share).
Sale of Treasury Shares: On November 1, 1,575 treasury shares were sold for $54 per share, resulting in a credit to Treasury Stock for the cost of the shares and a debit to Cash for the proceeds received, which is $85,050 (1,575 shares * $54 per share). Additionally, the difference between the proceeds and the cost of the treasury shares is credited to Paid-in Capital from Treasury Stock, assuming the shares were sold at a higher price than the repurchased cost.
On November 25, the remaining treasury shares were sold for $43 per share. Again, a similar journal entry is made with a focus on the cash received and the changes to the Treasury Stock account, along with any excess proceeds or loss being reflected in a separate equity account as appropriate.
This year Jack intends to file a married-joint return. Jack received $180,000 of salary, and paid $6,450 of interest on loans used to pay qualified tuition costs for his dependent daughter, Deb. This year Jack has also paid moving expenses of $5,750 and $34,500 of alimony to his ex-wife, Diane, who divorced him in 2012. (Round your intermediate calculations and final answer to the nearest whole dollar amount.)
Final answer:
Jack's taxable income for this year is $201,600, calculated by subtracting his deductions from his adjusted gross income.
Explanation:
To calculate Jack's taxable income, we need to subtract his deductions from his adjusted gross income. Let's break it down:
Jack's adjusted gross income is the sum of his salary, interest on loans used for tuition costs, moving expenses, and alimony. So, AGI = $180,000 + $6,450 + $5,750 + $34,500 = $226,700.
Next, we calculate Jack's deductions. The standard deduction for a married couple filing jointly in 2022 is $25,100.
Finally, we subtract the deductions from the AGI to get the taxable income. Taxable income = AGI - deductions = $226,700 - $25,100 = $201,600.
Therefore, Jack's taxable income for this year is $201,600. Please note that this is a simplified calculation, and Jack should consult a tax professional for accurate advice based on his specific situation.
Samantha is an entrepreneur and her company website has the following links: Home, About Us, Careers, Contact Us. She wishes to vary their appearance whenever they are visited or clicked. Samantha wants the color of Home to turn yellow when she moves the pointer over it. Identify the pseudo-class that should be used to perform this function.A. :link
B. :hover
C. :active
D. :visited
Option B
:hover the pseudo-class that should be used to perform this function.
Explanation:A CSS pseudo-class is a keyword attached to a selector that designates a specific state of the chosen element(s). The :hover pseudo-class is applied to style an element when the user’s pointer is over it. It mustn’t be limited to links, although that is the usual fair use case.
a:hover must appear after a:link and a:visited in the CSS definition to be powerful. It should resemble third in order (subsequent the :visited pseudo-class). Pseudo-class names are not case-sensitive. The syntax is
a:hover {
color: blue;
}
Final answer:
The pseudo-class :hover should be used to change the color of a link when the mouse pointer is over it, such as making the 'Home' link turn yellow on hover.
Explanation:
The correct pseudo-class to use for changing the appearance of a website link when the pointer is over it is :hover. The :hover pseudo-class applies a change in style when a user hovers their mouse over a certain element, without clicking it. So, if Samantha wants the color of the 'Home' link to turn yellow when someone moves the pointer over it, the CSS code would look something like this:
a:hover {
color: yellow;
}
This CSS code signifies that any anchor link (denoted by 'a') will turn yellow when the mouse is over it. The other pseudo-classes like :link is for unvisited links, :visited is for visited links, and :active is used when the link is being clicked.
Elmer received the following distributions from Virginiana Mutual Fund for the calendar year 2019: Ordinary dividends $250 Capital gain distributions $170 Nontaxable distributions $80 Elsie, Elmer's wife, did not own any of the Virginiana Mutual Fund shares, but she did receive $1,475 in interest on a savings account at the Moss National Bank and $175 in interest on California Municipal Bonds. Elmer and Elsie filed a joint income tax return for 2019. What amount is reportable as taxable interest income? a. $175 b. $0 c. $1,650 d. $1,475 e. None of these choices are correct.
Answer:
d. $1,475
Explanation:
The computation of the taxable interest income is shown below:
Since it is given that the Elmer received the interest on a saving account for $1,475 and the same is considered for taxable interest income because the interest on California Municipal Bonds i.e $175 is not considered as a taxable income
So in this case only $1,475 is relevant and held for taxable interest income
The amount that is reportable as taxable interest income on a joint tax return for Elmer and Elsie for 2019 is $1,475. This is because only the interest collected from Moss National Bank counts towards taxable interests. The interest from California Municipal Bonds is tax free.
Explanation:To calculate the taxable interest income of Elmer and Elsie, we need to identify the amounts provided that fall under taxable interest. The Ordinary dividends of $250 and Capital gain distributions of $170 received from Virginiana Mutual Fund by Elmer are taxable but not considered as 'interest income', but rather as 'dividend income' or 'capital gain'. On the other hand, the interest Elsie received from her savings account at the Moss National Bank of $1,475 is considered as taxable interest income. The interest on California Municipal Bonds, however, are typically exempt from federal as well as state income taxes in the state of issuance - in this case, California - and would not count towards taxable interest income. Therefore, the amount reportable as taxable interest income in Elmer and Elsie's joint income tax return for 2019 would be $1,475.
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Piechocki Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During May, the company budgeted for 6,100 units, but its actual level of activity was 6,050 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for May: Data used in budgeting: Fixed element per month Variable element per unit Revenue - $ 33.60 Direct labor $ 0 $ 5.60 Direct materials 0 13.20 Manufacturing overhead 31,000 1.10 Selling and administrative expenses 24,900 0.30 Total expenses $ 55,900 $ 20.20 Actual results for May: Revenue $ 204,100 Direct labor $ 33,360 Direct materials $ 81,200 Manufacturing overhead $ 40,500 Selling and administrative expenses $ 30,410 The direct labor in the planning budget for May would be closest to:
Answer:
The correct answer is $33,880.
Explanation:
According to the scenario, the given data are as follows:
Direct labor = $5.60 per unit
Actual level of Activity = 6,050
So, we can calculate the direct labor in planning budget by using following formula:
Direct labor in planning budget = Actual level of Activity × Direct labor
By putting the value, we get
Direct labor in planning budget = 6,050 × $5.60
= $33,880
Hence, The direct labor in the planning budget for May would be closest to $33,880.
Tom works for a large payroll outsourcing firm. One of his key customer’s contracts is set to expire in one month. Competition has heated up in this industry and Tom’s customer asked him to make a presentation to the top management team about his firm’s services. In his presentation, he thanked the customers for their loyalty, talked about industry trends, highlighted how his firm has been successfully serving firms for decades (unlike the new players in the market), and then asked them to renew their business again by showing them pricing options. Tom didn’t get the contract renewed and wonders if his presentation had anything to do with it. Which of the following actions should Tom do in order to IMPROVE his future presentations?
a. Spend less presentation time thanking the customer for his/her loyalty.
b. Provide arguments that his firm can meet the customer’s specific needs.
c. Assume the customer will renew and present pricing options upfront.
d. Spend more time talking about the competitions’ low quality services.
Answer:
b. Provide arguments that his firm can meet the customer’s specific needs.
Explanation:
According to the statement, Tom talked about the industry trends, how the firm has been successful and presented price options. However, there is an important point that Tom didn't address and that is crucial in these cases: it is to explain why your firm is the best option for the customer in terms of what you can do to fulfill the customer's needs and help them achieve their goals. This because you can find different competitors offering the same services and what would set your company apart is how it can better address the customer's needs. According to that, the answer is that to IMPROVE his future presentations Tom should provide arguments that his firm can meet the customer’s specific needs.
The other options are not right because spending less presentation time thanking the customer for his/her loyalty won't have an impact in the customer's decision. Also, assuming the customer will renew and present pricing options upfront and spending more time talking about the competitions’ low quality services can have a negative impact.
The highest and lowest levels of activity for the Felton Company were 58,000 direct labor hours and 42,000 direct labor hours, respectively. Maintenance costs were $336,000 at the 58,000-hour level and $304,000 at the 42,000-hour level.
a. Compute the maintenance cost formula.
b. What cost might we expect at an operating level of 52,000 direct labor hours?
Answer:
A. $32,000
B. $324,000
Explanation:
See attached file
Answer:
a. Compute the maintenance cost formula
Maintainance cost = $220,000 + $ 2.00 × Number of direct labour hours.
b. cost at an operating level of 52,000 direct labor hours
$324,000
Explanation:
a. Compute the maintenance cost formula
Maintainance Cost is a semi-variable cost. This means it has a fixed cost element and a variable cost element.
Cost separation of Maintainance cost is done by using the high - low method as follows :
Variable cost element = difference in Overhead (High - Low)/ difference in Acitivity (High - Low)
= $336,000 - $304,000 / 58,000 - 42,000
= $ 2.00 per direct labour hour
Fixed cost element = Total Overhead - Variable Cost at given activity level
activity level of 58,000 hrs produce the following results
Fixed cost element = $336,000 - $ 2.00 × 58,000
= $220,000
Maintainance cost = $220,000 + $ 2.00 × Number of direct labour hours.
b. cost at an operating level of 52,000 direct labor hours
Maintainance cost = $220,000 + $ 2.00 × Number of direct labour hours.
= $220,000 + $ 2.00 × 52,000
= $324,000
Good corporate citizens Multiple Choice go beyond meeting society's expectations for ethical strategies and business behavior by fostering social benefit and balancing the interests of all. identify up-and-coming managers who have a future in local- or state-level politics. provide work-from-home options to working mothers residing in distant locations. create a democratic workplace whereby the voices of lower-level employees are heard through representation on the board of directors. develop and market products that are solely environmentally friendly.
Complete question:
Good corporate citizens
A. go beyond meeting society's expectations for ethical strategies and business behavior by fostering social benefit and balancing the interests of all.
B. are active participants in the political process.
C. identify up-and-coming managers who have a future in local- or state-level politics.
D. create a democratic workplace whereby the voices of lower-level employees are heard through representation on the board of directors.
E. All of these.
Answer:
Good corporate citizens : go beyond meeting society's expectations for ethical strategies and business behavior by fostering social benefit and balancing the interests of all.
Explanation:
Economic obligations are focused on the assumption that strong and legitimate standards are met; that they are completely consistent with all local, regional, federal and foreign regulations; and that they are a decent, law-abiding business citizen who does not merely comply with the moral requirements of society.
Corporate responsibility or sustainability, businesses are two out the of three respondents required corporations to move outside their conventional is sometimes used to express the notion that fulfilling society's standards is part of a business that creates a difference, a business that does amazing things around the world.
Final answer:
Good corporate citizenship involves companies going beyond just meeting ethical standards to actively foster social and environmental benefits, balancing various stakeholder interests. It encompasses employee well-being, social responsibility, and sustainable environmental practices.
Explanation:
The question centers on the concept of good corporate citizenship, which involves companies going beyond the minimum requirements of ethical strategies and business behavior to foster social benefit and balance the interests of all stakeholders. Genuine corporate citizenship touches on various areas such as ethical business practices, social responsibility, employee well-being, and environmental stewardship. In the context of today's multifaceted business landscape, this is a critical part of business ethics that examines the moral implications of corporate decisions and actions.
Modern corporations must navigate the challenges of addressing social, economic, and environmental issues within their strategies. This can include implementing policies that support work-family balance, as evidenced by companies like IBM and Lucent Technologies, and engaging in practices that advocate for environmental sustainability, as done by corporations like Amazon and Samsung. The moral obligations of corporations might also include ensuring ethicality in emerging technologies, as embodied by the IEEE-CS's Software Engineering Code of Ethics for software engineers.
Involving all stakeholders, from employees to the broader community, in the corporate decision-making process and fulfilling corporate responsibility are fundamental to becoming exceptional corporate citizens. Corporations have a responsibility not just to their shareholders but also to their customers, employees, and the society at large, including fostering sustainable practices and acting as stewards of the environment.
All other things being equal, a company that sells multiple products should attempt to structure its sales mix so the greatest portion of the mix is composed of those products with the highest _______.
Answer: contribution margin
Explanation:
The contribution margin is the incremental money that is generated for each product or unit sold after the variable portion of the costs of the firm's has been deducted. The contribution margin is calculated as the subtraction of the variable cost per unit from the selling price per unit.
The contribution margin shows how the contribution of a particular product to the profit of the company. It shows the profit potential of a product that is offered by a company and also shows the number of sales that can help to cover the fixed cost of the company. The remaining revenue gotten after the fixed cost has been covered is the profit generated.
Contribution margin= Sales revenue - Variable cost
The types of decision making a consumer uses for a product does not necessarily remain constant. Why ?
Answer:
The decision making of a consumer goods does not change because the amount of a good consumer wants at a particular point in time is determined by some factors
Explanation:
The decision of a consumer does not remain constant, this is because, the quantity of a good consumer demand at a particular point in time is determined by several factor
Now, in the place where i am working in an MNC as a contract role. While my working period my consumption of goods increased as i was earning my own money and i did not have think more than once before purchasing any particular kind of goods
Now after that time ends, i have to collect money from my parents and now my thoughts and behavior towards consuming changed greatly.
Answer:
Well in most of the cases the decision making power and quality of the consumer remains constant but again, there are some cases where the the consumer changes the type of his/her decision making and go for another product.
One of the main reasons for this to happen is that, the consumer has or had a negative experience with the same product he.she has been using for a long time, this does not happen very often but when ever it does the consumer switches itself to other alternatives of that product.
Apart from that, there is a possibility that the product that the consumer really wants is sold out and now the consumer has to go with the alternative in order to satisfy his/her needs.
Hope this Helps.
Good luck.