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yarga [219]
3 years ago
9

Wholesome Pet Food has successfully specialized for 20 years in high-quality pet food made from all-natural ingredients and orga

nically raised lamb. This brand has a strong following and is recommended by veterinarians who practice in affluent neighborhoods. Wholesome's main supplier of lamb has announced that the price for lamb will be 15 percent higher next year. Which of the following statements is true?A. Wholesome will probably be able to pass the cost on to its customers because they are less sensitive to price increases than the average buyer.B. Companies pursuing Wholesome’s business strategy are especially vulnerable to this risk.C. If Wholesome raises its pet food prices, customers will turn to less expensive brands such as Purina.D. Wholesome probably operates on very thin margins, and a cost increase will threaten its ability to earn average returns.
Business
1 answer:
Liono4ka [1.6K]3 years ago
5 0

Answer:

A. Wholesome will probably be able to pass the cost on to its customers because they are less sensitive to price increases than the average buyer.

Explanation:

Wholesome pet foods has been providing services for 20 years and the are considered specialists in high quality pet foods. Their Strang brand following will make it possible to pass on the increased 15% cost of lamb next year.

Their clients have developed an attachment to the brand so they will be less sensitive to price increases, knowing they will always get quality product from Wholesome Pet foods.

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His decision on what price to charge and how much to produce in the long run will be A. based on optimal plant size determinatio
Klio2033 [76]

Answer: A. based on optimal plant size determination based on cost minimization

Explanation:

The information given isn't complete as there are some diagrams attached which I saw online.

Based on the information gotten, the decision on the price to charge and the quantity to produce in the long run will be based on optimal plant size determination based on cost minimization.

It should be noted that the quantity of goods produced in the long run, and the price that'll be charged will depends on optimal size of the plant. In the long, there can be an alteration of the plant size and therefore, the output and price will be determined by the optimal plant size.

8 0
3 years ago
Stellar Corporation had the following activities in 2020.
nexus9112 [7]

Answer:

Net cash provided by financing activities $315,000

Explanation:

The computation of the net cash provided or used by financing activities is shown below:

Issuance of common stock $275,000

Issuance of bonds payable $469,000

Less: Payment of dividends $380,000

Less: Purchase of treasury stock $49,000

Net cash provided by financing activities $315,000

6 0
2 years ago
The Maurer Company has a long-term debt ratio of .50 and a current ratio of 1.40. Current liabilities are $970, sales are $5,190
bekas [8.4K]

Answer:

$7,210.1065

Explanation:

The computation of net fixed assets is shown below:-

But before that we need to do the following calculations

Current Ratio = Current Assets ÷ Current Liabilities

Current Assets = 1.40 × $970

= $1,358

Profit Margin = Net Income ÷ Sales

= 9.30% = Net income ÷ $5,190

Net income = $5,190 × 9.30%

= $482.67

ROE = Net Income ÷ Shareholders Equity

16.90% = $482.67 ÷ Shareholders Equity

Shareholders Equity = $482.67 ÷ 16.90%

= $2,856.0355

Long-term debt ratio = Long term debt ÷ (Long term debt + Equity)

0.50 = Long term debt ÷ (Long term debt + $2,856.0355)

Long term debt = 0.50 × Long term debt + $2,856.0355

0.5 × Long term debt = $2,856.0355

Long term debt = $2,856.0355 ÷ 0.50

= $5,712.071

Total Assets = long term debt + Equity

= $5,712.071 + $2,856.0355

= $8,568.1065

Now

Total Assets = Current Assets + Fixed Assets

$8,568.1065 = $1,358 + fixed assets

So, the fixed asset is

= $8,568.1065 - $1,358

= $7,210.1065

7 0
3 years ago
Fill in the missing amounts.
Marrrta [24]

Answer:

Find my analysis below

Explanation:

The gross profit rate is the portion of net sales earned as gross profit prior to considering operating expenses as indicated by the formula below:

gross profit rate=gross profit/net sales

The profit margin measures the net income as a percentage of net sales

profit margin=net income/net sales

                                Crane company Sheridan company

Sales revenue                 $94,200  $103,000  

sales returns and allowance  $14,000  $3,000  

Net sales                           $80,200  $100,000  

cost of goods sold                  $54,200  $50,000  

Gross profit                               $26,000  $50,000  

Operating expenses            $14,700  $34,400  

Net income                            $11,300  $15,600  

 

Gross profit rate=gross profit /net sales 32.4% 50.0%

Profit margin=net income/net sales         14.1% 15.6%

Crane company Sheridan company

Sales revenue                 94200 =F5+F4

sales returns and allowance  =E3-E5 3000

Net sales                       80200 100000

cost of goods sold              54200 =F5-F7

Gross profit                       =E5-E6 50000

Operating expenses        14700 =F7-F9

Net income                            =E7-E8 15600

 

Gross profit rate=gross profit /net sales =E7/E5 =F7/F5

Profit margin=net income/net sales =E9/E5 =F9/F5

7 0
3 years ago
Marmol Corporation uses the allowance method for bad debts. During year 1, Marmol charged $30,000 to bad debt expense, and wrote
4vir4ik [10]

Answer: Option (d)

Explanation:

Under this case the write off will be as follow:

                                                                      Debit         Credit

Allowance for doubtful accounts                25,200  

Accounts receivables                                                     25,200

Here, in this case the Allowance for the doubtful accounts and Accounts receivables are further decreased as the outcome of the transaction made. Thus, there will be no further effect on working capital. Therefore the $30,000 that is bad debt would then be stated as the credit to allowance account. This will then decrease the working capital by $30,000.

4 0
3 years ago
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