Answer: With a loss
Explanation:
The firm here has its Marginal cost higher than it's marginal revenue.
This means that for every additional unit sold, the company is incurring a loss of $0.50 which is the difference between the marginal cost and the marginal revenue.
The company is therefore operating at a loss because every additional unit is costing them instead of benefitting them. To counter this, they need to reduce production so that marginal cost will fall.
Answer:
D. Word of Mouth
Explanation:
Word of mouth also referred to as viva voce, is the passing of information from person to person using oral communication,
Word of Mouth can be as simple as telling someone the time of day.
An Example of Word of mouth is Storytelling; A common form of Word Of Mouth communication where one person tells others a story about something that really happened or a fictional event.
In marketing, Word of Mouth is An unpaid form of promotion or advertisement in which satisfied customers or users of a particular product or services tell other people how much they like a business, product or service.
Word of Mouth advertising is very important for every business, because each happy customer can steer dozens of new customers to come and patronise you.
From the question, Kitty's company are making good sells and have many customers despite their location because of the positive and delightful things their satisfied customers say about them to other people. Thus Miss Kitty is benefiting from A positive Word Of Mouth.
Answer:
<u>Transactions:</u>
1. June 1 Monthly invests $3, 910 cash in exchange for shares of common stock in a small welding business.
2. June 2 Purchases equipment on account for 340.
3. June 3 $760 cash is paid to landlord for June rent.
4. June 12 Bills P. Leonard $410 after completing welding work done on account.
<u>Journal Entries:</u>
1.
June 1 Dr. Cr.
Investment $3,910
Cash $3,910
2.
June 2 Dr. Cr.
Equipment $340
Account Payable $340
3.
June 3 Dr. Cr.
Rent Expense $3,760
Cash $3,760
4.
June 12 Dr. Cr.
P. Leonard (Receivable) $410
Welding Service Revenue $410
Answer:
The outlook for the economy and the markets is for an improvement.
Explanation:
p/e ratio = price / earning
the higher the equity, the lower the ratio
If the p/e ratio is expected to be higher, it means that the equity would have to be lower this year than next year .
this implies that earnings would be higher next year and p/e ratio would be lower. this means there is a positive economic outlook
Answer:
Effect on income= $2,500 increase
Explanation:
Giving the following information:
Contribution margin= $44
The marketing manager believes that a $6,300 increase in the monthly advertising budget would result in a 200 unit increase in monthly sales.
To calculate the effect on income, we need to use the following formula:
Effect on income= increase in total contribution margin - increase in fixed costs
Effect on income= 200*44 - 6,300
Effect on income= $2,500 increase
