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3 years ago

6

Refer to the original data. assume that the company sold 18,000 units last year. the sales manager is convinced that a 10% reduc

tion in the selling price, combined with a $30,000 increase in advertising, would increase annual unit sales by one-third.

1 answer:

Tcecarenko [31]3 years ago

8 0

18,000 + 30,0౦0 = 48,000 increase annual sales

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Business behavior is derived in large part from the basic cultural environment in which the business operates and, as such, is s

solong [7]

Answer:

TRUE

Explanation:

The influence of cultural on business behavior is broadly encompassing. Cultural impacts ranges from understanding employee behavior and employees management methodologies; i.e. how best to manage employees based on their values and priorities. It also impacts the functional areas of marketing and distribution: what people appreciate and the peculiarities of their environment. It also greatly impact and is a strong determinant factor of success when a company is taking a decision on how best to enter a new market.

When business ignore cultural factors they are guilty of ethnocentrism and could be orchestrating business failure.

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3 years ago

In 2019, Carla Enterprises issued, at par, 60 $1,000, 8% bonds, each convertible into 100 shares of common stock. Carla had reve

dimulka [17.4K]

Answer:

Diluted earnings per share for 2020. is 93 cents

Explanation:

Diluted Earnings per share shows the<em> future position</em> of the Earnings per shareholders once the potential shareholders begin exercising their rights.

Potential Shareholders exists due to Financial Instruments that <em>might be converted into ordinary shares</em>. Examples are Convertible Bonds, Options, Convertible Preference shares.

<em>Step 1 Calculate Basic Earnings Per Share</em>

Basic Earnings Per Share = Earnings Attributable to Ordinary Shareholders / Weighted Average Number of Ordinary Shares in Issue during the period.

<u>Profits attributable to Ordinary Shareholders :</u>

Earnings ( $14,700 - $6,900) $7,800

<em>Less</em> After tax Interest on Bonds (60×$1,000×8%×80%) ( $3,840)

Profits attributable to Ordinary Shareholders $ 3960

<u>Weighted Average Number of Ordinary Shares</u>

Common stock outstanding 2,400 shares

Basic Earnings Per Share = $ 3960/ 2,400

= 165 cents

<em>Step 2 Calculate Diluted Earnings Per Share</em>

Diluted Earnings Per Share = Adjasted Basic Earnings per Share Earnings/ Adjasted Number of Ordinary Shares

<em></em>

<u>Adjusted Basic Earnings per Share Earnings</u>

Profits attributable to Ordinary Shareholders $ 3960

Add Savings on Interest (60×$1,000×8%×80%) $3,840

<em>Adjusted Basic Earnings per Share Earnings $7,800</em>

<u>Adjusted Number of Ordinary Shares</u>

Common stock outstanding 2,400 shares

Add 60× 100 shares of Convertible Bonds 6,000 shares

<em>Adjusted Number of Ordinary Shares 8,400 shares</em>

Diluted Earnings Per Share = $7,800/8,400 shares

= 93 cents

7 0

3 years ago

Stock A has an expected return of 15 percent and the standard deviation of its returns is 20 percent. Stock B has an expected re

kiruha [24]

Answer:

Stock A will be preferable for the risk averse Investors.

Explanation:

The reason is that risk is the measure of the vulnerability of the returns on the investment made which means if the return on the investment has greater vulnerability of returns then it is highly risky. So the risk averse investor would prefer stock A with lower risk.

(Special comments:

It must be noted that the higher return shows that the investment is also highly risky because nobody is going to give you more with low risk associated investments. This means lower return on Stock B is also preferable here for the risk averse investor because it carries lower risks.)

4 0

2 years ago

Justin, a real estate salesperson with City Brokerage, received a referral fee after referring a client to Mark, another real es

Ganezh [65]

Answer: Justin's sponsoring broker

Explanation:

From the question, we are informed that Justin, a real estate salesperson with City Brokerage, received a referral fee when he refered a client to Mark, who is another real estate salesperson with City Brokerage.

The person to pay Justin his referral fee will be Justin's sponsoring broker. It should be noted that when another agents gets a referral from an agent, the sponsoring broker is the one who gives the referral fee to the referring agent.

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3 years ago

Steve Conyers and Chelsy Poodle formed a partnership, dividing income as follows: Annual salary allowance to Poodle of $146,160.

Ahat [919]

Answer:

Conyers = $38,580

Poodle = $222,420

Explanation:

Annual salary allowance to Poodle of $146,160.

Interest of 6% on each partner's capital balance on January 1.

Any remaining net income divided to Conyers and Poodle, 1:2.

net income $261,000

distribution of interests:

Conyers = $54,000 x 6% = $3,240
Poodle = $93,000 x 6% = $5,580

drawings (annual salary allowance):

Poodle = $146,160

remaining income = $261,000 - $146,160 - $3,240 - $5,580 = $106,020

Conyers (1/3) = $35,340
Poodle (2/3) = $70,680

total distributed:

Conyers = $3,240 + $35,340 = $38,580
Poodle = $5.580 + $146,160 + $70,680 = $222,420

6 0

3 years ago