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egoroff_w [7]
3 years ago
9

Mettel Products sells 100,000 flash drives annually to industrial distributors who resell the drives to business customers for $

40 each. The distributors’ margins are 25%. Mettel Products’ cost of goods sold is $10.00 each. Mettel’s total variable costs (including selling costs) are $15.00 per drive. What is the gross margin (in percentage) enjoyed by Mettel Products on its drives? [Note: A firm’s margin on a product is typically calculated as a percentage of the firm’s selling price.] Mettel is considering increasing its annual advertising spending from $75,000 to $150,000. How many additional flash drives would it need to sell in a year in order to break-even? Now if instead of increasing its advertising spending, Mettel decides to reduce its price by $3 per drive, how many additional units would it need to sell in order to break even?
Business
1 answer:
Cerrena [4.2K]3 years ago
7 0

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Mettel Products sells 100,000 flash drives annually to industrial distributors who resell the drives to business customers for $40 each. The distributors’ margins are 25%. Mettel Products’ cost of goods sold is $10.00 each. Mettel’s total variable costs (including selling costs) are $15.00 per drive.

Selling price= 40/1.25= $32

A) Gross margin= 32 - 15= 17

%= 53%

B) Mettel is considering increasing its annual advertising spending from $75,000 to $150,000.

Break-even point= fixed costs/ contribution margin

Break-even points= 150,000/17= 8,824 units

C) Break-even points= 75,000/14= 5,357 units

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Which of the following statements regarding supply chain customer service is most accurate?
IrinaVladis [17]

Answer:

d. Supply chains should consider the needs of consumers provided those needs are consistent with marketing strategies.

Explanation:

In order for supply chain customer service to be effective, it is necessary to focus on customer needs and these needs must be aligned with the company's marketing strategies.

In other words, each stage of the supply chain must operate in an integrated manner, so that each process is synergistic and so that the final consumer can receive the product at the right time, in the right quantity and in the right quality. Therefore, supply chain management will improve each step of the process, guaranteeing the quality of the processes, the reduction of time, the reduction of costs and waste and ensuring the continuous improvement of the process, which will make the product go through each channel effectively, generating value and strengthening the relationship between the company and the consumer.

5 0
3 years ago
Deb and Rusty know that buying a house will save them money on taxes because they get to deduct the interest they pay to the ban
Margarita [4]

Answer:

Their income after 20 years would be 72,550 dollars.

Explanation:

The income after 20 years can easily de determin by using compounding

formula

Future Value = Present Value (1 + I)^ 20

                      = 90,000 (1 + 0.03)^ 20

                      = 162,550 dollars

Income can be determing by subtracting Pv from Fv i.e

Income = 162,550 - 90,000 = 72,550

Calculation on excel sheet

       A                        B                  C                         D                

1     90,000             1.03            = A1 * 1.03        = C1-A1        

2      = D1                  1.03           = A2 * 1.03       = C2-A2

20    = D19               1.03           = A20 * 1.03      = A20 - C20

* In work sheet colunm D will show income on investment.

4 0
3 years ago
Stock R has a beta of 2.5, Stock S has a beta of 0.55, the required return on an average stock is 13%, and the risk-free rate of
avanturin [10]

Answer:

19.50%

Explanation:

In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

For Stock R

= 3% + 2.5 × (13% - 3%)

= 3% + 2.5 × 10%

= 3% + 25%

= 28.00%

For Stock S

= 3% + 0.55 × (13% - 3%)

= 3% + 0.55 × 10%

= 3% + 5.5%

= 8.50%

The difference would be

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3 0
3 years ago
PepsiCo, Inc. (PEP) reported the following information about its long-term debt in the notes to a recent financial statement (in
Ann [662]

The long-term debt was disclosed as a current liability on the current year's December 31 balance sheet $4,096.

<u>Given Data provided in the question:</u>

                                          <u> Current Year</u>             <u>Preceding Year</u>

Total long term-debt         <u>   $27,917</u>                       <u>$26,557  </u>

Current portion                      <u>(</u><u>4,096)</u>                          <u>(2,224)</u>

Long-term debt                     <u>$23,821</u>                        <u>$24,333</u>

Now,

The long-term debt was disclosed as a current liability on the current year's December 31 balance sheet will be the amount equal to the current portion for the current year

Therefore, the answer is $4,096

<h3>What is Current Liability?</h3>

A current liability is:

  • An obligation that will be due within one year of the date of the company's balance sheet, and
  • Will require the use of a current asset or will create another current liability

However, if a company's normal operating cycle is longer than one year, current liabilities are the obligations that will be due within the operating cycle.

Current liabilities are usually reported as a separate section of a company's balance sheet. This allows readers to subtract their total from the company's total amount of current assets in order to determine a company's working capital. (Dividing current assets by the current liabilities is the company's current ratio.)

Your question is incomplete, but most probably your full question was:

PepsiCo, Inc. (PEP) reported the following information about its long-term debt in the notes to a recent financial statement (in millions): Long-term debt consists of the following: December 31 Current Year Preceding Year Total long term-debt $27,917 $26,557 Current portion (4,096) (2,224) Long-term debt $23,821 $24,333 a. How much of the long-term debt was disclosed as a current liability on the current year's December 31 balance sheet.

Learn more about Current liabilities on:

brainly.com/question/17367380

#SPJ4

8 0
2 years ago
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zalisa [80]

Answer:

Contingent workers

Explanation:

Contingent workers are people hired to do a specific assignment in an organization. They consist of independent workers, freelancers, consultants, out-sourced employees, and other non-permanent workers who are hired on per job basis. Contingent workers are not considered employees of the organization.

Contingent workers are usually highly skilled, unlike most of the temporary workers. They are hired to work on specific tasks in their areas of specialization. Contingent workers exit a company after their task is completed. They may be re-hired by the same company or any other institution. For example, a tax consultant may be contacted to do tax calculations in a company. Once the assignment is over, they get paid and leave the organization.

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3 years ago
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