Answer:
Credit card is at lower rate at 14.93% interest rate
Explanation:
Data provided in the question:
APR on credit card = 14% compounded monthly
Interest rate from parents = 8% compounded every six months
Now,
Annual interest rate = (1 + r )ⁿ - 1
Here,
r is the interest rate for the period
n is the total period
Thus,
For the credit card
since compounded monthly
Interest rate per month, r = 14% ÷ 12 = 1.167% = 0.01167
Number of periods, n = 12
Therefore,
Annual interest = (1 + 0.01167 )¹² - 1 = 0.1493
or
= 0.1493 × 100% = 14.93%
For borrowing from parents
since compounded every six months
Number of periods, n = 12 months ÷ 6 = 2
Interest rate , r = 8% = 0.08
Therefore,
Annual interest = (1 + 0.08 )² - 1 = 0.1664
or
= 0.1664× 100% = 16.64%
Credit card is at lower rate at 14.93% interest rate
Deriving the aggregate demand curve from the quantity equation of money allows the aggregate demand curve to be written as P = MV / Y. For V = 5 and M = 600, P = 3,000 / Y. If P = 1, then Y = 3,000, and if P = 3, then Y = _____, thereby demonstrating the _____ slope.
Answer:
The correct answer is: 1,000; Negative slope
Explanation:
The aggregate demand curve can be written as [tex]P =\frac{MV}{Y}[/tex]
Here, V = 5 and M = 600, so P will be
P = [tex]\frac{600\times5}{Y}[/tex]
P = [tex]\frac{3,000}{Y}[/tex]
If P = 1,
1 = [tex]\frac{3,000}{Y}[/tex]
Y = 3000
If P = 2,
2 = [tex]\frac{3,000}{Y}[/tex]
2Y = 3,000
Y = 1,500
If P = 3,
3 = [tex]\frac{3,000}{Y}[/tex]
3Y = 3,000
Y = 1,000
We see that as the value of P is increasing, the value of Y is declining. This means that P and Y are negatively related and have a negative slope.
In a centralized organizational arrangement, the _____ department is responsible for developing promotional plans that will be approved by management and recommending a promotions program based on the overall marketing plan, objectives, and budget. A. productionB. marketingC. salesD.advertisingE. product planning
Answer:
Letter D is correct. Advertising.
Explanation:
The organizational advertising department is responsible for developing promotional plans to drive customer prospecting.
In a centralized company, hierarchy is a determining factor, ie decision making is carried out by the highest degree of authority of the company, so when an advertising department needs management approval and recommendation for a promotion program based on marketing plan, objectives and budget, this means that centralization is the prevailing decision-making model, and each action development should be based on the set of goals set by the top hierarchy and reviewed by the manager for approval and possible corrections.
Omar Company uses a periodic inventory system and erroneously overstated ending inventory by $10,000 for the year ended December 31, 2017. Ignoring the tax effect, the effect on the 2017 financial statement includes an
Answer:
Profit will be overstated and Assets will be overstated
Explanation:
Income Statement:
Profit will be overstated by $10,000
Statement of financial position:
Assets will be overstated by $10,000
A price-discriminating firm charges the lowest price to the group that
Answer: price-discriminating firms charge more price from the group that has less price elasticity of demand than the group that has more elastic demand
Explanation:
Means, the group that does not decrease their demand as the price goes up. Price discriminating firms charge more price from such groups. Let me explain more that what price discriminating firms are.
These are the firms that charge different prices for similar and identical good from different groups.
When evaluating a new product, customers decide that they are willing to pay a certain amount, more or less, than they would for similar products offered by competitors. This difference in perceived worth is called ______ value.
Answer: brand value
Explanation: In simple words, brand value refers to the value that an organisation has earned on the basis of the perception that customers in the market have for them. Usually, brand value is created by the experiences that customers get while dealing with an organisation.
Brand value creates a strong customer base for the firm which results in less price elasticity for their product. Means, a company having brand value can charge extra price for a product than their competitors but customers would still stick to it.
Cadmia and Rhodia specialize in the production of electronics and pharmaceutical products respectively. They are considered the best at their specializations. Cadmia trades electronics with Rhodia in exchange for pharmaceutical products. Which perspective is illustrated by this form of trade between Cadmia and Rhodia?
Hey! How are you? My name is Maria, 19 years old. Yesterday broke up with a guy, looking for casual sex.
Write me here and I will give you my phone number - *pofsex.com*
My nickname - Lovely
Fact Pattern 18-B1
Moses sells an apartment building to Noelle with a promise to install a new heating and air conditioning system , before September 1. The following February 1, Moses sends Ollie, an HVAC technician, to begin the installation. Noelle orders Ollie to leave and refuses to make further payments to Moses, who files a suit against Noelle.
B9. Refer to Fact Pattern 18-B1. Moses’s late attempt to install the ventilation system is most likely
a. a material breach.
b. complete performance.
c. excused by Noelle’s refusal to make further payments.
d.substantial, but not complete, performance
Answer:
D) substantial, but not complete, performance
Explanation:
Even though Moses breached his contract with Noelle, most part of the contract was performed. The most significant part of the contract was the apartment itself, not the air conditioning system. For a material breach to exist Moses should have failed to perform in a greater way, not just the air conditioning. Probably Noelle should get a discount on the price of the apartment so that she can get the air conditioning system installed.
The fact that Noelle stopped paying for the apartment just because of this is a little overreacting. For example, if I buy a used car and the previous owner forgets to give me the spare tire, I cannot stop paying because it may be worth money but proportionally it's a small amount.
Nick has a comprehensive health care policy with a $250 per-calendar-year deductible, an 80% co-insurance provision, and a $1,000 copayment cap per calendar year. In January, Nick had a $600 claim for which the insurance company paid $280. Nick experiences another unrelated claim in October resulting in total bills of $5,000. How much will Nick have to pay for the second claim?
a. $5,000
b. $3,930
c. &1,800
d. $930
Answer:
Nick pay maximum $930
so correct option is d. $930
Explanation:
given data
health care policy = $250
co-insurance provision = 80 %
it mean claim to be paid by insurance company = 80%
and claim to be paid by Nick = 20 %
co payment cap = $1,000
claim insurance = $600
company paid = $280
total bills = $5,000
to find out
How much will Nick have to pay for the second claim
solution
we get first amount to be paid by insurance company and nick is
amount to be paid by insurance company and nick = $600 - $250
amount to be paid by insurance company and nick = $350
and
we know here 80% of $350 paid by insurance company
so paid by insurance company = 80% of $350 = $280
and paid by Nick = $350 - $280 = $70
so Limit available to co payment = $1000 - $70
Limit available to co payment = $930
so Nick pay maximum $930
so correct option is d. $930
Nick will need to pay $930 for the second health insurance claim. After accounting for the deductible he already met and applying the 20% co-insurance rate to the second claim, his payment falls under the $1,000 copayment cap for the year.
Explanation:To calculate how much Nick will have to pay for the second health insurance claim in October with total bills of $5,000, we need to consider the deductible, the co-insurance, and the copayment cap for the calendar year. Nick has already met his $250 deductible with the first claim in January and also encountered some of the co-insurance. For the second claim, he's responsible for 20% co-insurance until he reaches his $1,000 copayment cap for the year.
First claim:
Total bill: $600Deductible paid: $250Remainder: $350Insurance pays 80%: $280Nick pays 20%: $70Second claim in October (ignoring the $250 deductible which is already met):
Total bill: $5,000Co-insurance (20% of $5,000): $1,000However, Nick's co-insurance payments already include $70 from the first claim, so for the second claim: $1,000 - $70 = $930Since Nick's co-insurance payments for the year have not yet reached the copayment cap, he is responsible for the $930. Therefore, Nick will have to pay $930 for the second health insurance claim.
Your bank, First Bank, charges you $1.50 every time you use an ATM that is not owned by them. Unfortunately, there is no First Bank ATM near your school. There is a Second Bank ATM in the Student Center, which you use several times a week to withdraw $10 at a time for lunch, video games, etc. What is the best piece of advice regarding these transactions
Answer:
Every time you are withdrawing $10 from the Second Bank ATM you are paying 15% interest (or bank expenses). That is a lot of money, so you should try to avoid doing it. You should look for a First Bank ATM that is close to your home and withdraw the money before going to school. Or if you can't find an ATM from your bank you might even have to change your bank.
If you can't change your bank for whatever reason and you really need to withdraw money from Second Bank ATM my advice would be to try to withdraw larger sums so you only do it once a week or once every two weeks. Since the $1.50 per operation is a fixed amount, if you withdraw $50, you are only paying 3% interest.
Shondee Corporation uses the lower of cost or market and FIFO inventory methods. At the end of 2018, the FIFO cost of the ending inventory was $181,000, and the market value of the inventory was $160,000. The corporation switched to LIFO in 2019. If required, round your answer to the nearest dollar. As a result, Shondee Corporation must add: $ ______blank_____
to income for each of the years 2019, 2020, and 2021.
Answer:
reported as income for all three years is $7,000
Explanation:
given data
cost of the ending inventory = $181,000
market value inventory = $160,000
to find out
Shondee Corporation must add income
solution
we get here Income per year that is
Income per year = (Value under FIFO Method - Value Under Cost Method ) ÷ Number of year ..............................1
put here value we get
Income per year = [tex]\frac{181000 - 160000}{3}[/tex]
Income per year = [tex]\frac{21000}{3}[/tex]
Income per year = $7000
so reported as income for all three years is $7,000
Final answer:
Shondee Corporation must add $21,000 to income for each of the years 2019, 2020, and 2021.
Explanation:
Shondee Corporation uses the lower cost or market and FIFO inventory methods. At the end of the year 2018, the cost by FIFO of the ending inventory was $181,000, and the inventories market value was $160,000. The corporation switched to LIFO in 2019.
To determine the amount that Shondee Corporation must add to income for each of the years 2019, 2020, and 2021, we need to calculate the difference between the FIFO cost and the market value of the inventory.
In this case, the difference is $181,000 - $160,000 = $21,000. Therefore, Shondee Corporation must add $21,000 to income for each of the years 2019, 2020, and 2021.
Which of the following statements about public relations is true?
A. Public relations is not considered a management function.
B. An effective public relations program continues over months or even years.
C. Public relations has the same objectives as product and service promotion.
D. Public relations deals only with the activities designed to sell a product or service.
E. Typically, shorter forms of public relations and publicity are interchangeable functions."
Answer:
A. Public relations is not considered a management function.
Explanation:
The true statement about public relations among the options is: An effective public relations program continues over months or even years. Public relations is a key management function, has different objectives than product promotion, deals with more than just selling a product or service, and is not interchangeable with publicity.
Explanation:Certainly, it's important to understand each aspect of Public Relations. When we address the statements given:
A. This statement is incorrect as Public relations is indeed considered a critical management function in many organizations. B. This is correct, an effective public relations program is ongoing and may continue over months or even years in order to maintain and foster a positive image of the organization. C. This is not entirely accurate. While both public relations and promotion aim to enhance an organization's image and increase public awareness, their objectives can differ. Public relations focuses more on building long-term relationships with stakeholders, whereas promotion is more short-term and sales-focused. D. No, Public relations involves more than just selling a product or service — it deals with the overall reputation, image, and perception of the company amongst its various stakeholders (customers, employees, investors, the general public, etc.). E. This is not valid. Public relations and publicity are related but are not interchangeable. The main difference lies in control and purpose — public relations is a planned and sustained effort, whereas publicity often deals with singular issues and companies have little control over it. Learn more about Public Relations here:
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Seymour owns 3 acres of beautiful waterfront property on a large inland lake. In his will, Seymour donates the land to the state with the understanding that the land will be used as a state beach. Seymour wants an efficient way to prevent overcrowding at the beach, so he should require
a) that all beach visitors pay the same entry fee regardless of the day of the week or time of the year.
b) that the beach limit the number of visitors to 500 per day, without an entry fee.
c) an entry fee be charged on summer weekend days when many people tend to visit the beach.
d) that only local residents be admitted to the beach
Answer:
c) an entry fee be charged on summer weekend days when many people tend to visit the beach.
Explanation:
Since Seymour's goal is to prevent overcrowding, then it is wise to require payment of an entry fee, on certain days when a lot of people tend visit the beach more. On other days when not so many people visit the beach, then there can be free entry for all who do.
This would be an efficient way to make sure the beach is not overcrowded.
Suppose that government spending increases, shifting up the aggregate expenditure line. GDP increases from GDP1 to GDP2, and this amount is $200 billion. If the MPC is 0.8, then what is the distance between N and L or by how much did government
spending change?
A) $16 billion
B) $40 billion
C) $200 billion
D) $1,000 billion
[tex]\$40[/tex] billion is the distance between N and L.
Option - B
Explanation:
In financial aspects, the minimal penchant to expend (MPC) is a metric that measures actuated utilization, the idea that the expansion in close to home shopper spending (utilization) happens with an increment in discretionary cash flow (pay after expenses and moves). Government going through alludes to cash spent by the open area on the procurement of merchandise and arrangement of administrations, for example, training, medicinal services, social security, and guard.
In national pay bookkeeping, when the administration gets products and ventures for current use to straightforwardly fulfill the individual or aggregate needs and necessities of the network, it is named government last utilization spending.
At the point when the administration procures products and enterprises for sometime later, it is named government speculation. This incorporates open utilization and open venture, and move installments comprising of salary moves.
Suppose that a company is a price taker and sells its product for $15 each. This tells us that the firm is participating in the market structure known as _______________ and that marginal revenue is ___________ for each unit sold.a.monopoly; less than $15b.perfect competition; less than $15c.monopolistic competition; equal to $15d.perfect competition; equal to $15
Answer:
perfect competition; equal to $15
Explanation:
A Perfect competition industry is characterised by :
1. Firms that are price takers - They do not set price but prices are set by the forces of demand and supply.
2. Prices are equal to marginal revenue and average revenue.
3. plenty buyers and sellers.
4 free entry and exist of firms.
A monopolistic industry is chartcerised by :
1. Firms that are price makers.
2. Plenty buyers and sellers.
3. Price and average revenue are less than the marginal revenue
A monopoly is characterised by :
1. Firms that are price makers.
2. One seller
3. Price and average revenue are less than the marginal revenue
Recognizing that CD players are a thing of the past, those who manufactured CD players have not attempted to make any changes but are letting them live out the remainder of their lives. The makers of CD players have new technology to explore and do not want to waste resources trying to prolong the life of an obsolete technology. This is an example of _______.
a. a phase-out
b. an immediate drop
c. a run-off
d. product fading
e. harvesting
Answer:
a. a phase-out
Explanation:
Based on the information provided within the question in regards to the situation it seems that this is an example of a phase-out. This term refers to when a company abandons a plan or product little by little until it dies out. Which is what the company's in this situation are doing with the CD players since they realize that the technology is obsolete, no one will buy more, and making new ones or adding changes is a waste of time, money and resources.
Answer:
a. a phase-out
Explanation:
why a phase out? Because a phase out is the gradual reduction of a tax credit for which the taxpayer is eligible while their income approaches the limit to qualify for that credit. That is why a phase out is more similar to the case presented to us.
Drexel brothers is recruiting recent graduates with a physics or chemistry degree because of their problem-solving skills. the type of recruitment being used by drexel brothers is ________ recruiting.
Answer: External recruitment
Explanation: In simple words, it refers to the method of employing individuals in the organisation from external sources rather than the existing staff. The source of external sources are mainly campus placements and online recruitment etc.
Such kind of recruitment brings fresh ideas and effective employees to the organisation. However it can result in low morale of existing employees of the firm.
In the given case, company is recruiting fresh graduates on the basis of their skills hence we can conclude that they are doing external recruitment.
Drexel Brothers employs skills-based recruiting to target recent physics or chemistry graduates for their problem-solving and analytical abilities, which are highly valuable in professional scenarios.
The type of recruitment being used by Drexel Brothers, which focuses on attracting recent graduates with physics or chemistry degrees due to their problem-solving skills, is known as skills-based recruiting. Companies like Drexel Brothers value the analytical skills and ability to apply physical principles to real-world situations that students with a strong background in science bring to the workforce. These problem-solving competencies are critical, not only for academic success but also for professional life, as they allow for applying knowledge to various situations, unlike rote memorization of facts.
Raptor Inc. has retained earnings of $500,000 and total stockholders' equity of $2,000,000. It has 100,000 shares of $8 par value common stock outstanding, which is currently selling for $30 per share. What will occur if Raptor declares a 10% stock dividend on its common stock?
a. net income will decrease by $80,000.
b. retained earnings will decrease by $80,000 and total stockholders' equity will increase by $80,000.
c. retained earnings will decrease by $300,000 and total stockholders' equity will increase by $300,000.
d. retained earnings will decrease by $300,000 and total paid-in capital will increase by $300,000.
Forecasts used for new product planning, capital expenditures, facility location or expansion, and R&D typically utilize a
a.short-range time horizon.
b.medium-range time horizon.
c.long-range time horizon.
d.naive method, because there is no data history.
e.all of the above.
Answer:
c.long-range time horizon.
Explanation:
Forecasts consider long-range time horizon to improve accuracy and provide more authenticity.
In the context of consumer learning, which of the following statements is true of direct experience? Select one:
a. Information acquired is extremely vivid.
b. It does not have a strong influence on consumers' future behavior.
c. Information obtained is not credible.
d. It is highly subjected to marketing control.
e. Information cannot be retained in memory for long a time.
Answer: Information acquired is extremely vivid.
Explanation: Consumer learning involves consumers acquiring knowledge about a product consciously or unconsciously which directly affects their view of the product.
Since the knowledge gotten about the product is directly gained by the consumer, it creates a clear and lasting impression on them.
SuperBumperCars, Inc. requires all customers to sign a release that contains a clause that releases SuperBumperCars from all liability in the event of an injury occurring during a bumper car ride, no matter who is at fault. This is an example of
Answer:
It is an example of the exculpatory clause
Explanation:
Exculpatory clause is the clause in the provision of contract which relieves or states that the one party of liability if the damages are incurred during the execution or the performance of the contract. And the party who issued this clause is seeking to be relieved of that potential liability.
In this case, SuperBumpers Cars releases a clause stating that they are releases from all the liability in the event of an injury during the car ride.
West County Bank agrees to lend Drake Builders Company $400,000 on January 1. Drake Builders Company signs a $400,000, 6%, 6-month note. The entry made by Drake Builders Company on January 1 to record the proceeds and issuance of the note is
a. Interest Expense... 6,000 Cash ,000 Notes Payable ,000
b. Cash ,000 Notes Payable ,000
c. Cash ,000 Interest Expense... 12,000 Notes Payable ,000
d. Cash ,000 Interest Expense... 12,000 Notes Payable ,000
Answer:
The answer is b.Cash ,000 Notes Payable ,000
Explanation:
The exact entry Drake Builders Company has to record in its accounting book for the proceeds received from the issuance of the note is:
1st January
Dr Cash 400,000
Cr Note Payable 400,000
As at the time the note is issued, no interest expenses has been incurred, all the answer with Interest expenses can be eliminated.
In fact, interest expenses is only incurred and accrued during the lifetime of the note, based on the number of days the note is hold; that is, from the day the fund is lend out to Drake Builders Company; not on the day of issuance.
When the economy falters, people often look to the government to help push the economy forward again. In fact, the government uses many different tools to try to affect the economy. Economists classify these tools on the basis of two different types of policy _________.
Answer:
Monetary policy and Fiscal policy
Explanation:
There are two types of policies that the government uses to affect the economy. The first one is
1) Monetary policy is the use of changing interest rates or money supply to to affect the economy. For example if a government wants to slow down an economy they will increase interest rates so that the demand for money decreases and there is less investment in the economy. This is known as Contractionary monetary policy.
2) Fiscal policy is when the government changes tax rates or government spending in order to affect the economy, so if a government wants to boost an economy it will lower taxes to encourage business and this is known as expansionary fiscal policy.
In the context of demand-supply integration, _____ includes the ways in which two or more companies will collaborate on activities or projects so that the customer gains the maximum amount of total value possible from the supply chain.
Answer:
The correct answer is Relationship integration.
Explanation:
It is defined as the ability of companies to develop social connections that serve to guide their interactions when they work together. More specifically, relationship integration is the ability to develop and maintain a shared mental framework between companies that describes how they will depend on each other when they work together.
Giancarlo was just hired to revive an ailing publishing company. He would like to see a financial picture of the company at this time, including an itemized listing of assets, liabilities, and stockholders’ equity. Giancarlo needs to look at a(n)_________
Answer:
balance sheet
Explanation:
A balance sheet is one of the most essential financial statements that helps accountants and managers grasp the financial structure of the company, at a certain point of time.
The balance sheet clearly states the company's assets, liabilities and stockholders' equity, rigorously adhering to the basic accounting equation:
Assets = Stockholder's Equity + Liabilities
The equilibrium of the equation above is non-negotiable; it relies on common sense too. Every company owns things - assets, which were obtained with the aid of a e.g. bank loan - liability, or investor money - stockholders' equity.
These three groups can be further itemized into smaller, concrete accounts. Also, the liquidity principle is applicable in terms of ordering the items in an increasing liquidity order.
The time context is also an important distinction of this specific financial statement. While statements such as the P&L statement refer to a specific time interval (year, quarter...), the balance sheet reflects a specific point of time.
One reason L.L. Bean moved to an unstructured, NoSQL, big data environment was because the firm's customer engagement had evolved to include some 30 different customer engagement channels.
A) True
B) False
Answer:
The correct answer is True.
Explanation:
we can define a NoSQL database as one that does not require fixed data structures such as tables; They do not fully guarantee ACID features and scale very well horizontally. They are used in distributed environments that must always be available and operational and that manage a significant volume of data.
We could summarize the main features of a NoSQL database as follows:
The standard language does not have to be SQL The data scheme is flexible or does not have a predefined scheme, which allows the processing of heterogeneous data ACID properties are not always guaranteed Greater consistency between program and database data Designed to be generally scalable horizontally They are usually distributed They are often open source with large development communities behindJane receives an email claiming that her bank account information has been lost and that she needs to click a link to update the bank’s database. However, she doesn’t recognize the bank, because it is not one she does business with. What type of attack is she being presented with?
Answer:
Phishing
Explanation:
Phishing is a cyber attack, in which hackers and other criminals try to gather personal data like passwords, photographs, money, access to cloud files, etc. via deceptive emails with links, sent to thousands and thousands of people.
If Jane clicks and provides her passwords, and other personal information into a form, trusting it is a legitimate bank , then She may lose all her money and have many other problems like a cloned credit card, privacy, etc.
To cut costs, a broker-dealer hires some college interns. The firm allows the interns to make calls to potential clients to market investment opportunities in stocks, bonds, and mutual funds. This action would be:
Answer:
The correct answer is Since the interns are attempting to effect transactions, they must be registered. There is no requirement that an agent of a broker-dealer have a college degree. If they are properly registered, any employees of a broker-dealer may solicit securities transactions
Explanation:
Brokers or brokers must perform a proficiency test and demonstrate asset solvency to register in the commissions or securities superintendence of each country, and thus be able to carry out their activity. They can also delegate their functions to agents, but the responsibility is always the responsibility of the agent. In general, they have a bachelor's degree in one of the fields of economic sciences: accounting, administration, economics, actuarial sciences or finance. In the case of brokers in the form of a legal entity, they must be under the supervision of a control body.
The mode of exchange that requires some form of centralized social organization to receive economic contributions from all members of the group and to allocate them in such a way as to provide for every member of the group is called_________.
Answer: Redistribution
Explanation:
Redistribution is referred to as the mode of exchange which tends to include certain type of the centralized social group or organization. The representative of the group or the organization further tends to contribute articles such as money, food, clothing, etc. to this central social organization, and this organization then further redistributes the article to representative of the group.
Sand Company had sales of $400000, variable costs of $200000, and direct fixed costs totaling $100000. The company’s operating assets total $800000, and its required return is 10%. How much is the residual income?
Answer:
$20,000
Explanation:
Residual income is the income that is in excess of the minimum rate of return required on a company. So in this case the required return is 10% which is the minimum rate of return, any money made after the 10% return is residual income. First we need to find income
Income = Sales - Fixed costs - Variable Costs
=400,000-100,000-200,000
=100,000
Now we have to find the return, and we can find it by dividing income by total operating assets so return =
100,000/800,000=0.125= 12.5%
Residual income = Return - Required Return
= 12.5%-10%= 2.5%
The residual income is 2.5% of the operating assets so
800,000* 0.025=20,000
Residual income is calculated by subtracting the cost of capital from operating profit. In this scenario, the residual income for Sand Company is $20,000.
Residual income is a measure used in performance evaluation that calculates the economic profit after deducting a company's cost of capital from its operating profit. The formula for residual income is Operating income - (Operating assets x Required rate of return).
In this case, the operating income would be Sales - Variable costs - Direct fixed costs, which is $400,000 - $200,000 - $100,000 = $100,000. Plugging into the residual income formula, Residual income = $100,000 - ($800,000 x 0.10) = $20,000.
Your bagel company has a market share of 7% of area breakfast sales and you have a goal to increase that to 10% in 1 year. The market has $3,500,000 in breakfast sales per year. How much must you increase sales to achieve your goal?
Answer:
$105,000
Explanation:
The total sales are 3,500,000, and the current market share is 7%.
3,500,000 * 0.07 = $245,000
The goal is to increase the market share to 10%
3,500,000* 0.10 = $350,000
The difference between original sales and the target sale is
245,000 – 350,000 = $105,000
An increase of $105,000 is required to achieve a market share of 10%