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Yanka [14]
4 years ago
13

You work in the marketing research department of Burger King. Burger King has developed a new cooking process that makes the ham

burgers taste better. However, before the new hamburger is introduced in the market, taste tests will be conducted. How should the sample size for these taste tests be determined? What approach would you recommend? Justify your recommendations to a group of students representing Burger King management
Business
1 answer:
Bogdan [553]4 years ago
8 0

Answer with its Explanation:

The first step is to diversify the sample size so that our sample includes every person from different cultures, geographic, religions, genders, etc., which would help in better assessment of the product's future in the market.

Second step is to set a sample size for receiving the feedback of the customers at required confidence interval that is Burger King's goal to achieve. For example, Burger King desires to achieve 93% customer satisfaction and the error rate would determined by using the confidence interval. This sample size would be calculated using the practical approach.

Third step is to ensuring that the errors in prediction are reasonably low by practical approach, confidence interval approach and diversified test samples. All this will help the company to ensure that they have accurate results in hand for decision making.

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Harrison Ford Company has been approached by a new customer with an offer to purchase 10,000 units of its model IJ4 at a price o
pychu [463]

Answer:

If the offer is accepted, the income will decrease in $7,500.

Explanation:

Giving the following information:

Harrison Ford Company has been approached by a new customer with an offer to purchase 10,000 units of its model IJ4 for $5 each.

Unitary variable cost:

Direct Materials= $1.75

Direct Labor= $2.50

Variable Overhead= $1.50

1) Because it is a special offer and there is unused capacity, we will not have into account the fixed costs.

Accepting the offer:

Relevant cost= Unitary variable cost

Relevant cost= 1.75 + 2.5 + 1.50= $5.75

Relevant benefits= $5

2) Effect on income= 10,000*5 - 10,000*5.75= -$7,500

If the offer is accepted, the income will decrease in $7,500.

3 0
4 years ago
Data concerning Wang Corporation's single product appear below: (Do not round your intermediate calculations.)
Kipish [7]

Answer:

The break-even in monthly dollar sales is closest to $215,000

Explanation:

The break-even point is the level of production at which the costs of production equal the revenues for a product and calculated by using following formula:

Break-even point in units = Fixed expense/(Selling price per unit-Variable expense per unit) = $144,050/($230.00 - $75.90) = 935 units

The break-even in monthly dollar sales = 935 x $230.00 = $215,000

5 0
4 years ago
Perform online research and find the formula for calculating compound interest. If Mr. John Chrystal invests $6,000 today (Prese
Murrr4er [49]

Answer:

It is 7,816.79

Explanation:

joemama10110101

7 0
4 years ago
Measures of liquidity, Solvency and Profitability
gtnhenbr [62]

Answer and Explanation:

The computation is shown below:-

1. Working capital = Current Assets - Current Liabilities

= $3,514,496 - $1,098,280

= $2,416,216

2. Current ratio = Current Assets ÷ Current Liabilities

= $3,514,496 ÷ $1,098,280

= 3.2  times

3. Quick ratio = Quick Assets ÷ Current Liabilities

= ($762,860 + $1,154,610 + $824,900 ) ÷ $1,098,280

= 2.496  times

4. Accounts receivable turnover = Sales ÷ Average accounts Receivable

= $4,316,490 ÷ ($824,900 + $773,800) ÷ 2

= $4,316,490 ÷ $799,350

= 5.4 times

5. Number of days sales in receivables = Number of days in a year ÷ Accounts receivable turnover

= 365 ÷ 5.4

= 67.59 Days

6. Inventory turnover = Cost of goods sold ÷ (Average Inventory)

= $1,553,440 ÷ ($627,800 + $481,800) ÷ 2

= $1,553,440 ÷ $554800

= 2.8

7. Number of days sales in inventory = Number of days in a year ÷ Inventory turnover

= 365 ÷ 2.8

= 130.36 Days

8. Ratio of fixed assets to long-term liabilities = Net Property, plant, and equipment ÷ Total long-term liabilities

= $4,550,000 ÷ $3,500,000

= 1.3

9. Ratio of liabilities to stockholders equity = Total liabilities ÷ Total stockholders' equity

= $4,598,280 ÷ $5,747,850

= 0.80

10. Times interest earned = Income from operations ÷ Other expense (interest)

= $1,070,460 ÷ $280,000

= 3.82

11. Asset turnover = Sales ÷ Average Total Assets

= $4,316,490 ÷ ($10,346,130 + $8,125,942) ÷ 2

= $4,316,490 ÷ $9,236,036

= 0.467

12. Return on total assets = Net Income ÷ Average Total Assets

= $745,200 ÷ $9,236,036

= 8.07%

13. Return on stockholders’ equity = Net Income ÷ Avg. stockholders’ equity

= $745,200 ÷ ($5,747,850 + $5,052,150) ÷ 2

= $745,200 ÷ $5,400,000

= 13.8%

14. Return on common stockholders’ equity = (Net Income - Preferred dividend) ÷ (Average common stockholders’ equity )

= ($745,200 - $12,600) ÷ ($820,000 + $820,000 + $4,207,850 + $3,512,150) ÷ 2

= $732,600 ÷ $4,680,000

= 15.65%

15. Earnings per share on common stock = (Net Income - Preferred dividend) ÷ (Number of Outstanding shares )

= $732,600 ÷ $82,000

= $8.93

16. Price-earnings ratio = Market price ÷ Earning per share

= $52 ÷ $8.93

= 5.82

17. Dividends per share of common stock = Dividend on common stock ÷ Number of Outstanding shares

= $36,900 ÷ $82,000

= $0.45

18. Dividend yield = Dividends per share of common stock ÷ Market price

= $0.45 ÷ $52

= 0.865%

Therefore we have applied the above formulas.

6 0
4 years ago
A good ________ for a business research project includes a work schedule, research strategy, and statement of the problem.
Aloiza [94]

Answer: Work plan

Explanation:

A work plan is a step by step procedure used by an individual/organization to enable them effectively achieve their objectives.

A business research project is an extensive study done on a business, to obtain ways of improving the business and increasing sales.

For a business research project to be effectively conducted, a work plan that outlines steps to be taken should be created and strictly followed.

7 0
3 years ago
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