Answer:
<u>Select</u>
Explanation:
Marketing segmentation is usually done on the basis of demographic, which is based upon age composition or the population, psychographic which is based upon personality traits and the attitudes of consumers, geographical which is based as per the location of the consumers and behavioral which is based upon buyer buying habits and trends of past purchases.
Once the products in a particular market have been assigned i.e product market grid, and market size been estimated in terms of the estimated number of consumers within a segment, the next step is to select appropriate target markets.
Target markets refer to identified consumer groups with similar tastes, preferences and buying habits.
Answer: a. 1.42
b) 2.74
c) 3.89
Explanation:
a) The Degree of Operating Leverage measures how much operating Income will change by if Sales change.
It is calculated with the formula,
= (Sales - Variable Costs) / (Sales - Variable Costs - fixed costs)
= (960,000 - 532,000) / (960,000 - 532,000 - 127,000)
= 1.42
b) The Degree of financial leverage measures how much Income will change due to a change in operating Income.
The formula is,
=Earnings before Interest and tax / Earnings before Interest and tax - Interest or just Earning before tax
= 301,000/110,000
= 2.74
c. Degree of Total Leverage is a measure of how sensitive the net income of a company is to a change in goods produced and/or sold.
It is calculated by multiplying DOL and DFL.
= 1.42 * 2.74
= 3.89
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The returns of a capital amount to a compensation rate for depositing the money, to calculate these returns an interest rate is used by which the deposited capital is multiplied, in this case the rate is 4%.
As the money distributed is only the product of interest, then that money is the result of multiplying the capital by the interest rate, to obtain how much money Mr. Jefferson contributed, the reverse process will have to be done.
Answers
let <em>C</em> be the capital, then
:

The capital contributed by Mr. Jefferson was <em>$4,262,500</em>