Answer:
Total PV= $1,979,094.24
Explanation:
<u>To calculate the present value, we need to use the following formula on each cash flow:</u>
<u></u>
PV= Cf/(1+i)^n
Cf1= 400,000/1.04= 384,615.38
Cf2= 37,500/1.04^2= 34,670.86
Cf3= 480,000/1.04^3= 426,718.25
Cf4= 450,000/1.04^4= 384,661.89
Cf5= 550,000/1.04^5= 452,059.91
Cf6= 375,000/1.04^6= 296,367.95
Total PV= $1,979,094.24
Product life cycle is important for a business to focus on the introduction stage then the growth stage because the products to gain distribution as the product is initially new in the market. The quality of product is not assured and the price of the product will also determine as low or high.
Explanation:
- The cost is going to be on a higher side.
- The sales will be slow since there is no awareness of the product.
- There might be little or no competition in the market.
- You make very little money of the product sold.
- Customer are to prompted to take initiate into the product.
- Demand has to be created.
- Marketing cost at the highest level because of recognition.
- Profit is received from product is very minimal.
- First impression is the last impression that impression is created
- In the introduction of the product.
Answer:
- What is the meaning of the X- and Y-intercepts?
C) These are the limits of production if all resources are used to produce only one good.
When the production possibilities frontier (PPF) intersects the X or Y axis, it shows the maximum output level if all the resources are used to produce only one good.
- Why would an economy produce at this point?
D) All of the above.
When an economy is producing at either intersection point (X or Y), it is usually not because of extreme specialization but rather due to failures or negative factors that prevent the production of the other good. Employment failures that lead to an ineffective allocation of labor or capital deficiencies which result in an ineffective allocation of capital resources (including technology).
- Suppose you succeeded in lifting your economy to a point on its PPF. What point would you choose? How might your small society decide the point at which it wanted to be?
A) This depends on the value the society places on necessities and luxuries.
The theory behind the PPF not only applies to economies, it also applies to consumers and the consumption possibilities frontier (CPF). Consumers decide what products to buy depending on how they want to satisfy their needs, either by purchasing products that satisfy basic necessities or purchasing luxury products.
To be able to make a gross margin of around $32000, the total sales must be around $32,324.
<h3>What is gross margin?</h3>
Gross margin is the total amount of cost benefitted by the sales revenue and the cost derived for the goods being sold. As per the information given above, the total sales calculation will be as $32,324.
Putting the value of total sales in the given formula, the gross margin is $32,000 when the cost of goods being sold has increased by around 1 percent.
Hence, the gross margin will be $32000 when the total sales will be $32,324 and the costs of sales increases by one percent.
Learn more about gross margin here:
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