Answer: Our group will suggest strategy of Contraction of product mix
<u>Explanation:</u>
Our group will suggest a contraction of the product mix strategy. As per this strategy, we can eliminate one or more product lines or product items from the product mix. This will contract our product mix. The products like medical uniforms and women jeans which are having no sale and are not profitable now can be eliminated.
A company can target the customer for those products which are still in the product mix.
Answer:
b) Expectations of higher short-term interest rates in the future
Explanation:
When the yield curve is normal (upward sloping) it is because investors expect longer-maturity bonds to have a higher yield than shorter-maturity bonds, since interest rates are expected to rise in the long term.
On the contrary, if the yield curve is flat, it is because short-maturity and long-maturity bonds are giving the same, or almost the same yield, indicating that investors expect short-term interest rates to rise so much, that they compensate the capital gains for short-maturity bonds in terms of interst.
Answer:
$985,000
Explanation:
Given that,
Pretax book income = $1,000,000
Increase in net reserve for warranties = $25,000
Book depreciation = $100,000
Dividend received deduction = $15,000
Book equivalent of taxable income:
= Pretax book income - Dividend received deduction
= $1,000,000 - $15,000
= $985,000
Therefore, the Book equivalent of taxable income is $985,000.
