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3 years ago

To make low-profit customers more profitable the ABC bike shop-

Business

1 answer:

Anna007 [38]3 years ago

8 0

Answer:

C) allows existing customers to upgrade to a newer model by trading in their older model.

D) though it previously offered free delivery, now charges for deliveries made outside the city.

Explanation:

If ABC company wants to change low profit customers into more profitable customers, they need to:

encourage low profit clients to buy larger quantities by offering promotions (e.g. get a discount if you buy a bike, helmet and other gear all together)
forgo certain services or features to low profit customers, e.g. free delivery only for expensive bikes
increase the price of your product for low profit customers (e.g. charge a delivery cost for cheap bikes)
offer upgrading options to low profit clients

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Which of the following types of business environment is MOST typical of the Commonwealth Caribbean

charle [14.2K]

Which of the following types of business environment is MOST typical of the Commonwealth Caribbean area?
a) Corporate state
b) Mixed economy
c) Centrally planned
d) Perfectly competitive

Answer is b) Mixed economy

3 0

3 years ago

Marginal cost is ________ the average variable cost and the average total cost when they are ________

fredd [130]

Answer: equal to; at their minimum.

Explanation: Marginal cost is equal to the average variable cost and the average total cost when they are at their minimum.

Thus, when average total cost is increasing, marginal cost must be above average total cost; and when at its minimum, marginal cost is equal to average total cost. Also, when average variable cost is at its minimum, marginal cost equals average variable cost.

Marginal cost is the increase in the cost that accompanies a unit increase in output; the partial derivative of the cost function with respect to output.

8 0

3 years ago

On September 15, 2021, the Scottie Company board of directors declared a 8% stock dividend on common shares. The shares are to b

iren [92.7K]

Answer:

Date General Journal Debit Credit

Sept 15 Stock dividend $2,342,400

(1,200,000*8%*24.4)

Common Stock dividend distributable $480,000

(1,200,000*8%*5)

Paid in capital in excess of par- $1,862,400

Common Stock

Oct 1 No Journal entry

Oct 10 Common Stock dividend $480,000

distributable

Common Stock $480,000

3 0

2 years ago

A stock will pay no dividends for the next 3 years. Four years from now, the stock is expected to pay its first dividend in the

vesna_86 [32]

Answer:

$24.59 or $24.6 or $25

Explanation:

Value of the share is the present value of dividend associated with that share. We need to calculate the present value of each dividend at year 2 and add them to determine the value of the share.

As given there is no dividend for 3 years,next dividend of $2.4 dividend will be discounted for two years and $3 dividend for three years. After that we need to calculate the present value using DVM and discount this value for 4 years.

Value of Stock = [ $2.4 (1+14%)^-2 ] + [ $3 (1+14%)^-3 ] + [ $3(1+5%) / (14%-5%) ] x (1+14%)^-4

Value of Stock = $1.85 + $2.02 + $20.72 = $24.59

8 0

3 years ago

SprayCo Inc. develops and produces spraying equipment for lawn maintenance and industrial uses. On March 9 of the current year,

velikii [3]

Answer:

March 9

Dr Treasury Stock - Common stock 456,000

Cr Cash 456,000

( to record the reacquired of 12,000 common stock at $38 each)

June 9

Dr Cash 311,600

Cr Treasury stock 288,800

Cr Paid-in capital 22,800

( to record the sell of 7,600 reacquired common stocks at $41 each)

November 13

Dr Cash 118,900

Cr Treasury stock 110,200

Cr Paid-in capital 8,700

( to record the sell of 2,900 reacquired common stocks at $41 each)

The balance of paid-in capital from sales of treasury stock = 8,700 + 22,800 = 31,500 Credit

Explanation:

Calculation notes:

March 9: The cash spent on reacquired common stock = 12,000 x 38 = $456,000

June 9: Cash receipt on sell of treasury common stock = 7,600 x 41 = 311,600; which will Credited $288,800 into Treasury stock account ( 38 x 7,600) and Credited $22,800 ( (41-38) x 7,600) into Paid-in capital account.

Nov 13 : Cash receipt on sell of treasury common stock = 2,900 x 41 = 118,900; which will Credited $110,200 into Treasury stock account ( 38 x 2,900) and Credited $8,700 ( (41-38) x 2,900) into Paid-in capital account.

b. Calculation is shown above

3 0

3 years ago