Ask question

Ask question

All categories

2 years ago

9

A series of stages that products pass through in their lifetime, characterized by changing product demands over time is defined

as

1 answer:

Rashid [163]2 years ago

3 0

Product Life Cycle, for which the stages include launch, growth, saturation and decline. Hope it helps!

You might be interested in

. In a perfectly competitive market, the demand curve facing each individual seller is assumed to be ... a) perfectly inelastic

bagirrra123 [75]

Answer:

e) perfectly elastic

Explanation:

Elasticity is a measure of the sensitivity of demand to the price of a product. If demand is elastic, bidders should avoid raising prices as demand decreases considerably. Conversely, when demand is inelastic, consumers are less sensitive to price changes. When demand is perfectly elastic, this means that a slight increase in the price of a good will cause all demand to flow to a competing supplier. This is observed in competitive markets where providers provide the same type of good for the market price. If one of them raises the price, he loses all of his market share. This is because consumers are rational and will buy the product that is offered at the lowest possible price.

8 0

2 years ago

Adams, Incorporated would like to add a new line of business to its existing retail business. The new line of business will be t

Alekssandra [29.7K]

Answer:

machine's cost = $200,000 + $10,000 + $30,000 = $240,000

useful life of 4 years

salvage value of $25,000, depreciable value = $215,000

MACRS 3-year asset:

0.333 x $215,000 = $71,595
0.445 x $215,000 = $95,675
0.148 x $215,000 = $31,820
0.074 x $215,000 = $15,910

incremental sales of 1,250 units per year, during 4 years:

1,250 x $200 = $250,000
1,250 x $206 = $257,500
1,250 x $212.18 = $265,225
1,250 x $218.55 = $273,188

incremental COGS of 1,250 units per year, during 4 years:

1,250 x $100 = $125,000
1,250 x $103 = $128,750
1,250 x $106.09 = $132,613
1,250 x $109.27 = $136,588

net working capital increases by 12% of sales revenue = $250,000 x 12% = $30,000

WACC = 10%

tax rate = 40%

initial investment = $240,000 (machine cost) + $30,000 (working capital) = $270,000

net cash year 1 = [($250,000 - $125,000 - $71,595) x (1 - 40%)] + $71,595 = $103,638
net cash year 2 = [($257,500 - $128,750 - $95,675) x (1 - 40%)] + $95,675 = $115,520
net cash year 3 = [($265,225 - $136,588 - $31,820) x (1 - 40%)] + $31,820 = $92,295
net cash year 4 = [($273,188 - $136,588 - $15,910) x (1 - 40%)] + $15,910 = $88,324 + $25,000 (salvage value) + $30,000 (net working capital) = $143,324

to calculate the present value:

PV = $103,638/1.1 + $115,520/1.1² + $92,295/1.1³ + $143,324/1.1⁴ = $94,216 + $95,471 + $69,343 + $97,892 = $356,922

NPV = $356,922 - $270,000 = $86,922

4 0

3 years ago

Complete the following sentence.

grandymaker [24]

Answer:

Crucial or important?

Explanation:

Tell me if there's anything else to the question but I would say that it is very important to convince a person with understanding or appeal.

4 0

3 years ago

Read 2 more answers

Are responsible for verifying accuracy of their organization''s internal records and validating the accounting procedures.

7nadin3 [17]

INTERNAL AUDITORS are responsible for verifying accuracy ..........................
The activities performed by the internal auditors help a company to achieve its goals by employing a systematic and disciplined approach to evaluate and improve the effectiveness of risk management, control and governance.<span />

5 0

3 years ago

Crane Company had revenues of $334000, expenses of $201000, and dividends of $47000. When Income Summary is closed to Retained E

zzz [600]

Answer:

It is a credit to Retained Earnings. Credit of $133,000

Explanation:

Closing an entry means transferring all revenue (sales) account balance and expense account balance at the end of an accounting period to the income summary account.

This either leads to a net profit or loss for the period covered in the income summary account. The balance in the income summary then goes into the Retained Earnings.

Step 1: Transfer the revenue to the income summary...

Dr: Revenue - $334,000

Cr: Income summary - $334,000

Step 2: Transfer the expense to the income summary...

Dr: Income summary - $201,000

Cr: Expense- $201,000

This means Revenue (Dr) in step 1 minues Expense (Cr) in step two

$334,000 - $201,000 = $133,000.

The net profit of $133,000 is the transferred to Retained Earnings

Dr: Income summary - $133,000

Cr: Retained Earnings- $133,000

6 0

3 years ago