Answer: 13.2%
Explanation:
Given data:
No of stores in the market = 5000
No. of store owners = 2000.
Allison charges = $8/month
Sam charges = $8/month.
Solution:
The market penetration rate would be calculated based on potential customers.
Using our general formula,
Market penetration=Numbers of customers who purchased Allison derived sales and Sam derived sales /Total potential population
Where,
Total potential population=1,500
•Allison derived sales = 129 customers
•Sam derived sales = 69 customers
•Numbers of customers who purchased Allison derived sales and Sam derived sales=129 customers+ 69 customers
•Numbers of customers who purchased Allison derived sales and Sam derived sales =198 customers
Let’s input this into our general formula.
Market penetration
= 169 customers/1,500
= 0.132*100
= 13.2%
The market penetration rate based on potential customers is 13.2%
Answer:
A. $22.61
Explanation:
First,
find the growth rate(g);
g = ROE *retention rate
retention rate = 35%
ROE = Net income/value of equity
ROE = 800,000/5,000,000 = 0.16
Therefore, g = 0.16*0.35
g =0.056 or 5.6%
Price = 
D0 = Recently paid dividend
g = growth rate
r = required return
Price = 
Therefore, the value of this stock is $22.61
Revenue and liability has influence on reported financial statements because;
- it understates liabilities
- it overstates revenues
<h3>What is revenue and liability?</h3>
Revenue serves as the money that is been generated by the company as a profit while a liability serves as future sacrifices of economic benefits.
However, recognizing something as revenue instead of liability is dangerous because it can results in overstated net income.
Learn more about revenue at;
brainly.com/question/25855858
Answer:
C. y = 11000(1.086)^7
Explanation:
Given the following data;
Principal = $11,000
Interest rate = 8.6% = 8.6/100 = 0.086
Time = 7 years
To derive a mathematical expression, we would use the compound interest formula;
Where;
A is the future value.
P is the principal or starting amount.
r is annual interest rate.
t is the number of years for the compound interest.
Substituting into the formula, we have;
A = $19,580
Answer:
Break-even point= 1,200 DVDs
Explanation:
F<u>irst, we need to calculate the sales proportion:</u>
DVD= 4/5= 0.8
Home entertainment= 1/5= 0.2
<u>Now, we need to calculate the break-even point for the whole company:</u>
Break-even point (units)= Total fixed costs / Weighted average contribution margin
Weighted average contribution margin= (weighted average selling price - weighted average unitary variable cost)
Weighted average contribution margin= (200*0.8 + 600*0.2) - (160*0.8 + 460*0.2)
Weighted average contribution margin= 60
Break-even point (units)= 90,000/60= 1,500
<u>Finally, the number of DVDs:</u>
DVD= 1,500*0.8= 1,200 DVDs
