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soldier1979 [14.2K]
3 years ago
9

At what point does buying in bulk stop being a wise spending choice

Business
2 answers:
noname [10]3 years ago
6 0
I dont know and if you really think about it, i don’t think anyone else knows
ludmilkaskok [199]3 years ago
5 0

Answer:

Buying in bulk stops being a wise spending choice when the consumer buys more than is needed

Please mark brainliest! Have a nice day!

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Zytel Corporation produces cleaning compounds and solutions for industrial and household use. While most of its products are pro
SCORPION-xisa [38]

Answer:

4,513 approx.

Explanation:

The computation of the minimum number of jars of silver polish is shown below:-

Sales revenue for one jar of silver polish    $5.60

Sales revenue for 1/4 pound of Grit 337     0.85

($3.40 ×  1 ÷ 4)

Incremental revenue from

further processing                                        $4.75

($5.60 - 0.85)

Incremental costs of further processing:

Processing costs                      $2.40

Selling costs                              $0.40          $2.80

Incremental contribution

margin from further

processing into silver polish

per jar                                                            $1.95

($4.75 - $2.80)

Point of indifference denotes the point where all options are equally profitable. But after that we will see that more processing is profitable. This is due to the fixed costs involved in further production.

Thus Minimum number of jars needed to produce to justify the further processing = Avoidable Fixed cost ÷ Incremental contribution

= $8,800 ÷ $1.95

= 4,513 approx.

8 0
3 years ago
The firm projects a rapid growth of 40 percent for the next two years and then a growth rate of 20 percent for the following two
il63 [147K]

Answer:

The price of the stock today is $15.63

Explanation:

The three stage Dividend Discount model will be used to calculate the price of this stock as the dividends are growing at three different growth rates. These dividends will be discounted back to calculate the price of the stock today.

The price per share today under this model will be:

P0 = D1 / (1+r) + D2 / (1+r)^2 + ... + Dn / (1+r)^n + [Dn * (1+gC) / (r - gC)] / (1+r)^n

Where,

  • D1 is the dividend expected for the next period of Year 1.
  • gC is the constant growth rate or third stage growth rate that will last forever.

P0 = 1.25 / (1+0.2)  +  1.25 * (1+0.4) / (1+0.2)^2  +  1.25 * (1+0.4) * (1+0.2) / (1+0.2)^3  +  1.25 * (1+0.4) * (1+0.2)^2  /  (1+0.2)^4  +  

[1.25 * (1+0.4) * (1+0.2)^2 * (1+0.08)  /  (0.2 - 0.08)]  /  (1+0.2)^4

The P0 = $15.625 rounded off to $15.63

7 0
3 years ago
If a cheese factory was interested in estimating the market potential for a new light cheese and estimated the potential by mult
marysya [2.9K]

Answer:

True

Explanation:

Generally, a chain-ratio method is a method of estimating the total amount of money to be spent on a particular business in order to achieve marketing targets. Based on the forecast of the factory and the decision to venture into the production of a new cheese product, the chain-ratio method is the best method for the estimation.

7 0
3 years ago
Eleanor takes several high-cost prescription drugs. She would like to enroll in a standalone Part D prescription drug plan that
Fiesta28 [93]
A ....................
3 0
3 years ago
Read 2 more answers
You purchase another company for $50m. The company you purchase has assets with a fair value of $75m and liabilities with a fair
Crazy boy [7]

Answer:

b. $5m

Explanation:

If we purchase another company for $50m and the company you purchase has assets with a fair value of $75m and liabilities with a fair value of $30m. The amount of goodwill we should record in this transaction is: $5m

Goodwill upon acquisition of companies is derived by subtracting the fair value of NET ASSETS from the TOTAL CONSIDERATION (i.e the price paid to acquire the company)

In the scenario, the value of Net Assets is the value of the fairvalue of the assets less the fair value of the liabilities which is $75 - $30 = $45

While the Total Consideration = $50

Therefore Goodwill = $50m - $45m = $5m

5 0
3 years ago
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