As the middle and lower classes reduced income their response to their demand will be reduced. Household spending will be affected.
<h3>What is middle class income.</h3>
Middle class income earners are the people with income or salary that is more than their spending. Their earning is doubling the average spending of their household.
Therefore, a decline in middle and lower classes reduced income will reduce the household spending.
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Answer:
What is the nominal annual percentage cost of its non-free trade credit, based on a 365-day year? The firm's APR of not taking the trade credit is <u>0.1613</u>.
Explanation:
The nominal cost of its non-free trade credit = the discounts lost for paying late.
In this case, the seller offers a 3% discount if the firm pays within 15 days.
annual financial cost = [discount / (100% - discount)] x [365 / (repayment time - discount period)]
annual financial cost = [3% / (100% - 3%)] x [365 / (85 - 15)] = (3% / 97%) x (365 / 70) = 0.1613 or 16.13%
Answer:
if both the company integrates together, then this result may not be feasible and marketers must pay the firm's $19.
Explanation:
For one news paper, advertisers were willing to pay $10 for ads.
They were prepared to pay $19 to advertised in both news papers
If somehow marketers exploit and persuade the newspaper with which they negotiate on $10 they'll reach an agreement with profits and that at $9 from other newspaper as well, and if this approach works, then advertisers pay just $9 for both newspapers, which is equivalent to $9+$9=$18
Furthermore, if both the company integrates together, then this result may not be feasible and marketers must pay the firm's $19.
The company's merges give them marketability to influence and decide the cost to enhance the competitiveness of the company as competition decreases. The newspaper now has market dominance, and so it may not work to compromise tactics used by marketers. In other words, there are many more advertisers on the market than the newspaper available.
Answer:
Explanation:
first of all we need to identify the present value of laibility
v= 85000/(1+15%)^4
Pv = 48599 which is equal to cash recieved.
We need to perpare amotization schedule to recognize closing laibiltity carying amount and interst expense
Amortization schedule
Year Amount Interest 15% Closing Amount
1 48599 7289.85 55888.85
2 55888.85 8383.33 64272.18
3 64272.18 9640.83 73913
4 73913.00413 11086.95 85000
Entries
Cash 48599
Long term Liability 48599
To record the long term laibility
Interest Expense 7289.85
Laibilty 7289.85
To record the interest expense on the laibility