The factors that are used in the rule-of-thumb methods to determine the communication budget is "Prior sales and communication activities".
<h3>What is rule-of-thumb method?</h3>
The rule of thumb would be a cognitive guideline that offers basic guidelines or guidance that is distilled for a certain topic or course of action.
Some characteristics of rule-of-thumb are-
- A general rule of thumb an unofficial practical guidance that offers streamlined rules that generally apply.
- Numerous financial rules of thumb provide advice on how much should be saved, how much should be paid for a home, where and how to invest, and other topics.
- Rules of thumb may not apply to your specific scenario because they not scientific and don't take into consideration the unique circumstances and demands of each individual.
- It is a fundamental principle that provides step-by-step guidelines for carrying out or handling a specific task.
- In contrast to scientific study or a theoretical underpinning, rules of thumb typically emerge through experience and practice.
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You would have to either make them pay another installment.
Answer:
There are several ways to compute the degree of operating leverage (DOL). A fairly intuitive approach is expressed below.
DOL = (sales - variable costs) / (sales - variable costs - fixed costs)
For Kendall, the DOL is computed as follows:
DOL = (1,000 * $60 - 1,000 * $60 * .30) / (1,000 * $60 - 1,000 * $60 * .30 - $30,000) = 3.5
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Answer: Sunk Cost
Explanation:
A sunk cost is an expense which a company or entity has already incurred and which cannot be recovered and so should not be considered when making decisions regarding incremental benefits or costs to an investment.
The $48 had already been incurred to produce the defective units and cannot be recovered so it is a sunk cost that should not be considered moving forward.
