Answer:
C). A revenue-focused bidding strategy.
Explanation:
As per the details given in the question, <u>'a revenue-focused bidding strategy' </u>will most likely assist the marketer in upkeeping his needs as his<u> key focus is to discern a particular return on his investment that he made for the monthly ad spend made by him</u>. This automated strategy of bidding will allow him to keep track of the revenue and escalate the return. Thus, <u>option C</u> is the correct answer.
The economist's analysis in the scenario painted above incorporates the idea of OPPORTUNITY COST.
Opportunity cost refers to a value or a benefit which must be given up in order to enjoy or acquire another benefit. Because resources are scarce, one always has to make decision about how to use one's resources efficiently. In the scenario given above, Joe had the opportunity to put his money in a fixed deposit account or to use it to buy gold coins; he choose the latter given up the former. Thus, the former, which he gave up is his opportunity cost.<span />
The target capital structure and the companies that prefer them are:
Equity Capital structure:
- Managers with a conservative management style.
- Companies not in a position to provide collateral.
- Companies want to show a high credit rating.
Debt Capital:
- Companies with high growth rate.
- Businesses in the growth stage.
- Fast-growing companies like software.
<h3>What drives companies to pick either debt or equity?</h3>
Companies that are conservative and want to have high credit ratings will not employ debt as much because it is risky. Companies that cannot give collateral for debt also prefer equity.
Companies that are growing on the other hand, prefer to go for debt because they have the capacity to pay it off.
Find out more on the decision between debt and equity at brainly.com/question/24322461.
#SPJ1
Answer:
Explanation: Journal Entries
Debit: Cash. $19.7m
Credit: Unearned Revenue $19.7m
Being sales of gift card for the month of December.
Debit: Unearned Revenue. $12.7m
Credit: Sales. $12.7m
Being actual gift card redeemed for the month if December.
Unearned Revenue a/c has a credit bal of $7m as unredeemed gift card. Its a liability to the company as they have the money but the cards are yet to be redeemed.
Answer:
The company's margin of safety in dollars is $1,640,000 .
Explanation:
Margin of Safety is the amount in units or dollars by which sales may fall before a Company starts making a loss.
The first step is to calculate break even point in dollar sales.
Break even point in dollar sales = Fixed Costs / Contribution Margin Ratio
Where,
Fixed Costs = Contribution margin - Operating Income
= $560,000 - $410,000
= $150,000
Contribution Margin Ratio = Contribution margin ÷ Sales revenue
= $560,000 ÷ $2,240,000
= 0.25
Thus,
Break even point in dollar sales = $150,000 / 0.25
= $600,000
Margin of Safety = Expect Sales - Break Even Sales
= $2,240,000 - $600,000
= $1,640,000
