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Sever21 [200]
3 years ago
13

Identify the correct statement about the per-unit expenditure approach of determining advertising expenses. Group of answer choi

ces a. It is popular because it views sales as a function of advertising. b. It considers a percentage figure and applies it to either past or future sales. c. It attempts to determine the retail price by using production costs as a base. d. It is often based on the premise that advertising is defensive.
Business
2 answers:
Tom [10]3 years ago
6 0

Answer:

The correct answer is letter "C": It attempts to determine the retail price by using production costs as a base.

Explanation:

Companies use different approaches to calculate the cost of advertising. The per-unit expenditure approach, just like its name states, aims to determine the unitary cost of advertising considering the price at which the products or services offered are sold to final consumers based on their production costs. This method is more often used for expensive products. Some other methods are the <em>competitive parity, task approach, </em>and <em>research approach</em>.

Leviafan [203]3 years ago
5 0

Answer:

Option C It attempts to determine the retail price by using production costs as a base.

Explanation:

This approach helps in determining the retail price of the competitors that he is charging in the market. This gives a better insight to what the production costs are of the competitors.This information is very important for pricing decisions and for cost control strategy. This gives a better insight where we are and where we must be. So the option C is correct here.

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The downward slope of a demand curve illustrates the pattern that as ________ decreases, ________ increases.
Lelechka [254]
Potential energy, kinetic energy
8 0
3 years ago
Which of the following is a likely reason for choosing FDI instead of licensing?
Romashka [77]

Answer:

The correct option is B

Explanation:

FDI is an investment in the business through an investor from another country and control is with the foreign investor over the company purchased.

Licensing means all the contracts to which the third part has granted or licensed any right to its subsidiaries or company.

So, the reason for preferring FDI instead of license is sharing the intellectual know how with the foreign rival might be risky as this is a limitation in licensing.

8 0
3 years ago
aagen Inc. is a merchandising company. Last month the company's cost of goods sold was $92,000. The company's beginning merchand
Paladinen [302]

Answer:

the company purchase is $94,000

Explanation:

The computation of the total amount of the company merchanise purchase for the month is shown below:

Cost of goods sold = Beginning merchandise inventory + Purchases − Ending merchandise inventory

$92,000 = $14,000 + Purchase - $16,000

So, the purchase is

= $92,000 + $16,000 - $14,000

= $94,000

Hence, the company purchase is $94,000

4 0
3 years ago
What is the stock price per share for a stock that has a required return of 16%, an expected dividend $2.7 per share, and a cons
Anit [1.1K]

Answer:

Price of stock = $49.5

Explanation:

<em>The Dividend Valuation Model(DVM) is a technique used to value the worth of an asset. According to this model, the value of an asset is the sum of the present values of the future cash flows would that arise from the asset discounted at the required rate of return. </em>

If dividend is expected to grow at a given rate , the value of a share is calculated using the formula below:  

Price of stock=Do (1+g)/(k-g)  

Do - dividend in the following year, K- requited rate of return , g- growth rate  

DATA:

D0- 2.7

g- 10%

K- 16%

Price of stock = ( 2.7×1.1)/(0.16-0.1) = 49.5

Price of stock = $49.5

3 0
3 years ago
20. WACC and NPV [LO3, 5] Sommer, Inc., is considering a project that will result
g100num [7]
Mark Brainliest please

Sommer Inc is considering the new project, and yet we have to calculate under what circumstances the company have to take on the project. In order to assess the project, we need to compute the break-even cost such as the present value of future cash flows and calculate the WACC weighted cost of capital. It measures the weighted cost of equity and the after tax cost of debt. The following information are given: Debt to equity ratio = 0.90 Cost of equity = 13% After-tax cost of debt = 4.8% After-tax cost of savings = $2.7 million Debt to equity ratio = Debt / Equity = 0.90 Therefore, Value of firm = value of debt + value of equity Value of firm = 0.90E + E Value of firm

See the calculation of WACC as attachment
8 0
3 years ago
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