Answer:
b. can be calculated by modifying the break-even equation.
Explanation:
As the name implies, target profit can be explained to be the certain amount a business enterprise or a business organisation targets to hit at the end of its sales or at the end of her business dealings.
It can be easily seen in a cash flow planning as it is once modified to approximate cash flow, and also used for revealing expected results to investors and lenders. In all that it is been used for, in the scenario above, it also can be calculated by modifying the break-even equation, and deriving more conservative budgeting packages in business development too.
Adjust the contribution margin per unit and units sold based on an expected sales promotion.
Alter the fixed cost total and the contribution margin per unit for the effects of outsourcing production.
Alter the contribution margin for the effects of changing to a just-in-time production system.
If there is continually a large unfavorable variance between the target and actual profit, it may be necessary to examine the system used to derive the target profit,
Answer:
At this point, Simon has lost $1,000 of his money.
Explanation:
This can be determined by calculating the current value of Simon's investment as follows:
Initial amount invested = $8,000
Value of the investment on July 17 = Initial amount invested * (100% - Percentage of loss) = $8,000 * (100% - 50%) = $4,000
Value of the investment on October 17 = Value of the investment on July 17 * (100% + Percentage of increase) = $4,000 * (100% + 75%) = $7,000
Amount of loss on October 17 = Initial amount invested - Value of the investment on October 17 = $8,000 - $7,000 = $1,000
Therefore, at this point, Simon has lost $1,000 of his money.
Answer:
Two-way Stretch
Explanation:
Marriott Corporation now contains hotels and motels from the "budget" end of the consumer spectrum to the "premium" end with their JD Marriott flagship locations. This is an example of a firm that successfully performed a t<u>wo-way stretch</u> to reach more consumers and ventures that are more profitable.
Two way stretch: It is an expansion strategy of the company to introduce product within the same product line to cater different customer in the market. Company introduce new product to attract more customer as now they have premium product and low end product. Product are stretched both ways upward and downward. Example: Maruti, Titan, Marriot- Hotel & resorts, etc.
In the given case, Marriott Corporation now contains hotels and motels from the "budget" end of the consumer spectrum to the "premium" end with their JD Marriott flagship locations. Therefore, they are using two-way stretch strategy.
Answer:
Software development to be recognized = Cost incurred after achievement of technological feasibility = $400,000
Explanation:
Useful life = 4 years
Annual amortization = $400,000 / 4 years = $100,000
Period of amortization in 2016 = July 1, 2016 to December 31, 2016 = 6 months
Year 2016 amortization = $100,000 × 6 months/12 months = $100,000 × 1/2 = $50,000
Answer:
Option D is correct
Explanation:
Due to the increase in awareness amongst target market would increase consumers demand of product which would increase revenue.
