Answer:
a) Augmented product: Previous Sabre models have won high praise from the automotive industry, and all 500 units of past vehicles have sold within weeks of announcement
b) Promised product: Sabre provides each potential customer with a list of customizable features that can be added during the manufacturing process.
c) Tangible product: Sabre designs and manufactures each automobile in-house; it makes every part of the car, from the tires to the brakes to the transmission to the metallic paint. Sabre employees make each car by hand.
d) Core product: Sabre is a performance automobile manufacturer headquartered in Ulster, Ireland. It has been in business for eighteen years and has brought twenty performance-oriented automobiles to market during this time.
Explanation:
a) The augmented product is defined as one that is capable of exceeding consumer expectations. In this case, the cars were sold very fast since customers were met with their expectations regarding the product offered.
b) In this case, Saber is able to customize each car with a series of additional features that offer the user so that he is able to have his own car as he would like
c) Tangible products are defined as goods or services that are manufactured, dispatched and delivered, that is, in this case, cars
d) Saber's main product is the manufacture of high performance cars. That is its main product and its strength in the business
Answer:
The explanation is given as follows.
Explanation:
<u>Task 1: </u>
<u>The higher the percentage of assets a bank holds as loans, the higher the capital requirement.</u>
When the owners of the bank borrow $100 to supplement their existing reserves , both reserves and debt increase by $100 , therefore increase in debt as in any balance sheet , the total value of accounts on the left hand should be equal to the right hand , so when there is increase in reserves , there will be increase in debt.
<u>Task 2:</u>
<u>It specifies a minimum leverage ratio for all banks
</u>
leverage ratio initially = total assets / capital = 1750 / 125 = 14
leverage ratio new value = total assets / capital = 1850 / 125 = 14.8 ( the assets increase by $100 with increase in reserves)
<u>Task 3</u>
<u>Its intended goal is to protect the interests of those who hold equity in the bank.</u>
Capital requirement are there to ensure that bank have enough capital to repay the depositors and debtors and if a bank holds a higher percent of risky assets , capital requirements will be higher so that the bank remains solvent hence option a is right answer.
Answer:
$18,400
Explanation:
For computing the preferred dividend, first we have to find out the yearly dividend which is shown below:
= Number of shares × par value per share × dividend rate
= 5,400 shares × $50 × 6%
= $16,200
In 2019, the dividend was paid of $14,000
Remaining dividend left is $16,200 - $14,000 = $2,200
So, the total preference dividend in 2019 would be
= Yearly dividend + remaining dividend left
= $16,200 + $2,200
= $18,400
Answer:
Explanation:
The journal entry is shown below:
Warranty expense A/c Dr $25,500
To Estimated warranty liability $25,500
(Being the estimated warranty provision is recorded)
The computation is shown below:
= Merchandise sale value × given percentage
= $850,000 × 3%
= $25,500
Simply we debited the warranty expense and credited the estimated warranty liability so that the correct posting can be done.
Answer:
A 3% rise in the interest rate would most add to the debt.
Explanation:
When a country is projecting a deficit of 20 million next year, the expenses
of the government are more than the revenue by 20 million.
To fund the expenses, the country has to borrow 20 million.
A. An increase in the deficit by 500000 will add to the debt by that same amount.
The country's debt will increase by 500000.
B. A 3% rise in the interest rate means that the country has to pay 3% more
on 20 million. 3% of 20 million is equal to 600000.
The debt will increase by 600000.
C. An increase in tax revenues by 600000 mean that the country's deficit
will reduce by 600000.
The country's debt will reduce by 600000.
