Complete Question: Many banks and phone companies now charge fees for once-free services to ensure minimum customer revenue levels. This helps the banks to ________.
A) reduce the rate of customer defection
B) make low-profit customers more profitable
C) enhance the growth potential for each customer through cross-selling
D) increase the longevity of the customer relationship
E) focus disproportionate effort on high-value customers
Answer:
B) make low-profit customers more profitable
Explanation:
Many banks and phone companies now charge fees for once-free services to ensure minimum customer revenue levels. This helps the banks to make low profit customers more profitable.
The basic logic behind this strategy is that when customers find something coming free, then they start taking it for granted, they don't pay much attention to it, therefore, when the some services are free, customers will not be spending much on them, like upgrading, monthly plan up-gradations, monthly or annual subscriptions. Consequently, to turn the those customers into highly valuable customers, companies charge for the services which were free of cost in the past.
Answer:
$43,745
Explanation:
Calculation for what the Capital account reported on the Statement of Owner's Equity at the end of the month would be
Using this formula
Ending Capital Balance = Cash (1)+ Photography equipment (2) +Cash for services provided (4)+Services to customers on account (6)- Monthly rent(7)- Utility (9)
Let plug in the formula
Ending Capital Balance = $13,800 + $23,000 + $6,000 + $3,050 - $1,800 - $305
Ending Capital Balance= $43,745
Therefore the balance in the Capital account reported on the Statement of Owner's Equity at the end of the month would be: $43,745
Answer:
the net book value of the asset halfway through its useful life will be less than if straight-line depreciation is used.
Explanation:
Let me use an example to illustrate this.
An asset has a useful life of 4 years. It costs $1000. It has a salvage value of 0
If the straight line depreciation method is used , the depreciation expense every year = $1000/ 4 = $250
The net book value halfway through its useful life = $1000 - ($250 x 2) = $500
If double declining method is used, the depreciation expense in the first year would be = 2/4 x $1000 = $500
The net book value at the beginning of year 2 = $1000 - $500 = $500
Depreciation expense in year 2 = 2/4 x $500 = $250
The net book value at the beginning of year 3 = $500 - $250 = $250
We can see that the net book value halfway through the useful is lower when double declining depreciation method is used
Answer:
<u>Option B</u> must pay him as an employee, withhold appropriate taxes and issue a W-2 at year end
Explanation: He is paid based on hours worked, and uses the company equipment thus is an employee who is controlled by an employer. The independent contractors buy their own supplies, provide their own equipment and paid based on tasks performed
Based on the given scenario above, what Sal's reduction of effort represents DEFENSIVE STRATEGY. Defensive strategies are techniques that are utilized in order to combat an attack for possible competitors. In Sal's situation, since she is approaching retirement, her back up plan to decrease the possibility of having problems in the business is to reduce the number of locations.
