Answer:
The correct word for the blank space is: market cannibalization.
Explanation:
Market cannibalization refers to the loss of revenues as a result of the introduction of a new product by the same company. The initial purpose of the firm is to spread its market share but the product introduced is so similar or covers the same need than the previous that it ends up replacing it instead of acquiring more consumers.
Market cannibalization also takes place when franchises of the same firm open stores too close to each other than one of them ends up capturing all consumers which replace the first store operating in the area.
Answer:
Present value of lease payments is $17720.57
Explanation:
The value of lease payments can be treated as an annuity due as the lease payments qualify the criteria of annuity- the payment amount is constant, is paid after a constant interval of time and the time is definite and known.
So, we will use the formula for the present value of annuity due as the payments are being made at the start of the period. The formula for the present value of an annuity due is attached.
PV of lease = 3600 + 3600 * [ {1 - (1 + 0.17)^-(8-1)} / 0.17 ]
PV of lease = $17720.56848 rounded off to $17720.57
Answer:
d.select the unlevered option since the expected EBIT is less than the break-even level
Explanation:
Unlevered option comprises of more equity than the debt, and is thus less risky. While an option leveraged is even more debt than equity, which brings additional risk. Since the estimated EBIT is below the break-even point, it would be safer to go for an unlevered (less riskier) option.
Hence, the correct option is d.
Answer:
Suburban organizational structures of homes are of different patterns that is evolving over the years.
From the days of cluster pattern of building of homes. This was struck out because it does not allow cross ventilation.
The elongated building system by the side of roads. The danger of over closeness to road struck out this organizational structure of suburban homes.
Also,Suburban structures occasionally call to mind their roots in the frontier experience — a pioneering spirit crystallized in the image of a small house standing at the edge of a vast and savage landscape. Confronting the wilderness, this cabin provides a place of refuge for the men and women who work the land in advance of the settlement yet to come. Today the legacy of the pioneer’s cabin can be encountered at the fringes of suburbia like a portent of the vast expanses of housing that will follow in its wake. In true pioneering fashion, the structure shown here lays claim to the landscape simply by virtue of being there first. The homespun elements of pitched roof and white timber siding, fetishistically pristine against the churned soil of the building site, are the formal embodiment of the myth of Manifest Destiny — a symbol of enterprise, resourcefulness and ultimate triumph in the face of an unknown and threatening world. Like Abbe Laugier’s own primitive hut, both natural and affected, this cabin stands as the proud primogenitor of suburbia.
Answer:
NU company.
The reason LIFO and FIFO present 2 different valuation of inventory is because of the way inventory is expensed in either methods.
LIFO stands for Last in First out. Meaning the last stock to be received should be the first to be issued to production.
If it thus shows that our costs of inventory has been increasing over the period, the inventory expensed to cost of sales will be high while the inventory balance in the balance sheet low. And the reverse if the costs of new inventory purchases have been declining.
FIFO stands for First in First out. Meaning the first inventories receives must be exhausted before we move to the receipt after that, and on and on.
If it thus shows that our costs of inventory has been increasing over the period, the inventory expensed to cost of sales will be low while the inventory balance in the balance sheet high. And the reverse if the costs of new inventory purchases have been declining
Nu company Gross Profit
Net sales $2,950
Less costs of sales:
Cost of goods available for sale 2,350
Less inventory closing 920
Costs of sales 1,430
Gross profit $1,520
Gross Profit % = $1,520 / $2,950
= 52% (c)
