It is an example of Club marketing program. Club marketing program is a marketing program mainly designed for regular and frequent buyers of a company's particular product or those with special interests with the product. Club marketing programs offer members special benefits and create member communities. For example Apples encourages members to form local Apple user groups offering services such as newsletters, advice on technical issues, and training classes which benefits the members.
1) Many firms
2) Few artificial barriers to entry
3) Slight control over price
4)Differentiated products
Solution :
At every stage the formula used will be :
After the junior year, Aunt Mabel's bank balance will be :
= $ 7,322.65
Aunt Mabel's bank balance after sophomore year will be :
7,322.65 + 1000 = $ 8,322.65
= $ 8060.677
After the freshman year, bank balance of Aunt Mable's will be :
8060.677 + 6000 = $ 14,060.677
= $ 14.0606
If Aunt Mabel can predict the interest rate with accuracy, she will have to deposit :
$ 14.0606 + $ 9000 = $ 9,014.06
= $ 8,565.241
Answer:
2 years and 5 months
Explanation:
304,000 Investment
+86,000 operating income
+ 38,000 depreciaton (non-cash expense)
124,000 cash flow per year
<em>Note: </em>The non-cash expense should be excluded from the calculaton of the payback period.
304,000/124,000 = 2.451612903 years
0.451612903 x 12 = 5.419354839
2 years and 5 months
Answer:
following a linear equation:
y = mx + b
if we use July's data:
y = $0.0882m + 500
where
y = total cost
m = number of copies
the slope = 1 / 11.3333 = 0.0882
Explanation:
Month Number of Copies Total Copy Cost
January 46,000 $4,600
February 42,000 $4,400
March 58,000 $5,300
April 64,000 $6,300
May 57,000 $5,000
June 62,000 $5,800
<u>July 68,000 $6,500 </u>
August 71,000 $7,300
y = mx + b
6,500 = 68,000x + 500
x = variable cost per unit = (6,500 - 500) / 68,000 = $0.088235294 per copy ≈ $0.0882 per copy
the equation would be:
y = $0.0882m + 500
the slope = 1 / 11.3333 = 0.0882
