Answer:
The loss if discontinued will be 74,000
If keeps production it will lose 12,000
It will lose 62,000 more if discontinues
It is a disadvantage to eliminate this product.
Explanation:
units of X 15,500
unit sales price 25
unit variable cost 19
contribution per unit 6
contribution for X 93,000
105,000 fixed cost
operating result: -12,000
If discontinued then the result will be -74,000
Because, those fixed cost would not be avoidable even if the product was discontinued.
So the annual fiancial disadvantage will be (-74,000) - (-12,000) = -62,000
It will lose 62,000 more cash if discontinues
Answer: Coupon Direct Mail
Explanation:
From the information on the dashboard, Kai should invest in Coupon Direct Mail as a means of promoting the business. With this method, Kai attracts the highest number of clients at 150 per month which is larger than the other two methods.
Kai will also make the highest amount of profit of $2,000 using this method even after the costs of this method have been accounted for. The best option for Kai therefore is to use the Coupon Direct Mail promotional marketing effort.
Hi there
The formula of the present value of annuity ordinary is
Pv=pmt [(1-(1+r)^(-n))÷r]
Pv present value?
PMT 700 payment per year
R interest rate 0.1
N time 6 years
So
Pv=700×((1−(1+0.1)^(−6))÷(0.1))
pv=3,048.68
Hope it helps
Answer:
a. Menu cost.
b. Nominal wage of confusion.
c. Real shock.
d. Solow Growth Rate
e. Business Fluctuations.
Explanation:
a. Menu cost: Firms' costs associated with changing their prices.
b. Nominal wage of confusion: When workers respond, not to the purchasing power of their wage, but to the face value of their wage or salary.
c. Real shock: An event that changes the existing productivity and therefore changes the extent to which economic growth occurs.
d. Solow Growth Rate: Given flexible prices and the existing factors of production, a measure of how much the economy grows.
The Solow Growth Model, developed by Robert Solow, a Nobel Prize winning economist. It was the first neoclassical growth model which was was built upon the Keynesian Harrod-Domar model. The modern theory of economic growth is given by the Solow Model.
The equation below gives us the change in capital stock per worker with population growth at rate n;
Δk = sf(k) – (δ + n)k.
Where k: capital stock per worker in period t
s: savings rate
δ: rate of depreciation of capital
n: labor or number of workers
sf(k): savings per capita multiplied by a fraction of income saved.
e. Business Fluctuations: Variations in the growth rate from the long-run rate of economic growth real shock business fluctuations.
Answer:
Justify your recommendation. From the BCG Matrix we can tell that Electrical appliances unit is a Cash Cow with high market share and stable growth.
THEN U FIND ONE THAT U LIKE
HOPE THIS HELPS
Explanation: