Answer:
$1,250
Explanation:
The computation is shown below:
Customer life time value = Gross contribution margin × (yearly retention rate ÷ 1 + yearly discount rate - yearly retention rate)
= $500 × (0.8 ÷ 1 + 0.12 - 0.80)
= $400 ÷ 0.32
= $1,250
The gross contribution margin would be
= $1,000 - $500
= $500
hence, the estimate for the lifetime value os $1,250
The answer to this question is a manufacturer type of company. A manufacturer is a company / business or a person that makes / produce products in large quantities. In this question, Nabisco is a manufacturer of oreo cookies. Manufacturers produce goods either through a machine or manual labor.
Answer:
Total cost= $105,000
Explanation:
<u>Because the 15,000 units are in the relevant range, the fixed costs remain constant. Now, we need to calculate the total cost of 15,000 units:</u>
Direct material= 15,000*2.5= 37,500
Direct labor= 15,000*0.75= 11,250
Variable overhead= 15,000*1.25= 18,750
Variable selling and administrative= 15,000*1.5= 22,500
Total variable cost= $90,000
Total fixed costs= $15,000
Total cost= $105,000
Answer:
vertical integration
Explanation:
In this case, Luxury Linens is both producing and selling their products. This means that they vertically integrated the sales channel.
There are two types of integration strategies:
- vertical integration: e.g. when a producer decides to acquire a supplier or decides to produce their own supplies and not buy them from someone else. Or the producer can decide to start selling and distributing their products directly to the final customers.
- horizontal integration: e.g. when a large online retail store like Amazon decides to acquire or start operating other types of retail stores like Whole Foods or other brick and mortar stores. A company will acquire or merge with another company that operates in the same level.
Answer:
The statement that is not correct is:
- <u><em>B) A purchase of equipment is classified as a cash outflow from investing activitites.</em></u>
Explanation:
<u><em>A) Paying dividends to investors creates a cash outflow from financing activities. </em></u>
This is correct.
The financing cash flow or cash flow generated by financing activities is the cash flow that involves transactions with the banks (only the long term debt) or stake holders: financing debt, equity, and dividend.
Issuing equity of debt is a cash inflow: increases the cash of the company.
Paying dividends, such as repurchasing debt or equity are cash outlfow: decreases the cash of the company.
<u><em>B) A purchase of equipment is classified as a cash outflow from investing activities.</em></u>
<u><em></em></u>
This is not correct.
The operating cash flow is the cash that involves the operations of the company: sales (revenue), trade receivables, operating investement in building and equipments used for the operation, purchases from suppliers (inventory).
When you purchase an equipment it diminishes the cash or impact an operating account; thus, a purchase of equipment is classified as a cash ouflow from operating activities, not from investing activities.
