All categories

3 years ago

"for which service characteristic do marketers need to pay close attention to fluctuations in demand?"

1 answer:

4 0

Perishability is a service characteristic that marketers need to pay attention to fluctuations in demand for. Perishability means that the item will not have a shelf life that's long lasting. If the market is creating/producing to many of one item or a service that is perishable and the demand is low, they will end up losing out on the service because it can not be stored for future use.

You might be interested in

The foreign exchange rate is:

ElenaW [278]

Answer:

Option C: the price of one country's currency in terms of another country's currency

Explanation:

Exchange rate is simply the rate at which one currency is converted into another currency. foreign exchange market is said to be a market for changing or converting the currency of one country into that of another country. It enables conversion of the currency of one country into the currency of another and provides some insurance against foreign exchange risk.

3 0

2 years ago

Under AICPA rules, which statement best describes the period of the professional engagement as it applies to a three-year engage

gizmo_the_mogwai [7]

Answer: The correct answer is "D. It begins when the engagement letter is signed and continues until the report for the third year is issued unless the relationship is terminated sooner.".

Explanation: The statement "It begins when the engagement letter is signed and continues until the report for the third year is issued unless the relationship is terminated sooner." best describes the period of the professional engagement as it applies to a three-year engagement to audit client's financial statements since this type of professional commitment begins with the signing of the document that formalizes the commitment and is in force until the issuance of the last report unless the relationship is resolved beforehand by another circumstance.

4 0

2 years ago

Break-Even Sales Under Present and Proposed Conditions

solong [7]

Answer:

<h3>Portmann Company</h3>

1. Total variable costs = $89,000,000

Total fixed costs = $40,600,000

2. a Unit variable cost = $89

b. Unit contribution margin = $100

3. Break-even sales (units) = Fixed cost/Contribution margin per unit

= $40,600,000/$100

= 406,000 units

4. Break-even sales (units) = Fixed cost/Contribution margin per unit

= $45,100,000/$100

= 451,000 units

5. Break-even sales (units) to achieve target profit = (Fixed cost + Target Profit)/Contribution margin per unit

= ($45,100,000 + $59,400,000)/$100

= 1,045,000 units

6. Maximum operating income possible with the expanded plant is:

= $61,900,000

7. Operating income if the proposal is accepted and sales remain at the current level is:

= $54,900,000

Explanation:

a) Data and Calculations:

Sales volume during current year = 1,000,000

Sales price per unit during current year = $189

Income statement is as follows:

Sales $189,000,000

Cost of goods sold (101,000,000)

Gross profit $88,000,000

Expenses:

Selling expenses $16,000,000

Administrative expenses 12,600,000

Total expenses (28,600,000)

Operating income $59,400,000

Variable Fixed

Cost of goods sold 70% 30%

Selling expenses 75% 25%

Administrative expenses 50% 50%

Total variable costs for the current year:

Variable

Cost of goods sold 70% * $101,000,000 = $70,700,000

Selling expenses 75% * $16,000,000 = 12,000,000

Administrative expenses 50% * $12,600,000 = 6,300,000

Total variable costs = $89,000,000

Variable unit cost = $89 ($89,000,000/1,000,000)

Contribution per unit = $100 ($189 - $89)

Total fixed costs for the current year:

Fixed

Cost of goods sold 30% * $101,000,000 = $30,300,000

Selling expenses 25% * $16,000,000 = 4,000,000

Administrative expenses 50% * $12,600,000 = 6,300,000

Total fixed costs = $40,600,000

Projected sales for the next year = $202,230,000 ($189,000,000 + $13,230,000)

Percentage Increase in sales for the next year = $13,250,000/$189,000,000 * 100 = 7%

Fixed costs caused by expansion = $4,500,000

Total fixed costs = $45,100,000 ($40,600,000 + $4,500,000)

Variable costs = $95,230,000 ($89,000,000 * 1.07)

Contribution margin:

Sales $202,230,000

Variable costs 95,230,000

Contribution margin $107,000,000

Expenses:

Fixed costs 45,100,000

Operating income $61,900,000

Sales volume = 1,070,000 units (1,000,000 * 1.07)

Contribution per unit = $107,000,000/1,070,000 = $100

Sales at current level:

Sales $189,000,000

Variable costs 89,000,000

Contribution $100,000,000

Fixed costs 45,100,000

Operating income $54,900,000

6 0

2 years ago

The cash conversion cycle is computed as:

Anna [14]

Answer:

The correct option here is A) Days sales outstanding + Days inventory outstanding - Days payable outstanding.

Explanation:

Cash conversion cycle which is also termed as Net operating cycle or Cash cycle, this cycle tells us about how much time it is going to take for an organization to converts the amount of investment it has made in the inventory and various other resources to cash , which will be generated by sales.

Formula used for calculation =

AMOUNT OF SALES OUTSTANDING IN DAYS

AMOUNT OF INVENTORY OUTSTANDING IN DAYS

AMOUNT OF PAYABLE OUTSTANDING IN DAYS

4 0

3 years ago

Jacqui decides to open her own business and earns $50,000 in accounting profit the first year. When deciding to open her own bus

Ira Lisetskai [31]

Answer:

C) $4,000

Explanation:

To calculate economic profit we can use the following formula:

economic profit = total revenue - (accounting costs + implicit costs) = (total revenue - accounting cost) - implicit costs

where:

accounting profit = total revenue - accounting cost = $50,000
implicit costs: ($20,000 x 5%) + $45,000 = $1,000 + $45,000 = $46,000

economic profit = $50,000 - $46,000 = $4,000

3 0

3 years ago

"for which service characteristic do marketers need to pay close attention to fluctuations in​ demand?"

"for which service characteristic do marketers need to pay close attention to fluctuations in demand?"