Answer:
Disability Buy-Sell; The premiums are not deductible, but the benefits are received income tax-free.
Explanation:
Answer:
$2,250
Explanation:
Since terms require you to amortize the loan with 7 equal end-of-year payments, it implies that interest will be paid on the amount outstanding balance for a whole year.
The would be paid in Year 2 can therefore be calculated as follows:
Equal amount of the loan principal = Loan amount / Number of equal end-of-year payments = $35,000 / 7 = $5,000
Loan balance outstanding throughout Year 2 = Loan amount - Year 1 end-of-year payment = $35,000 - $5,000 = $30,000
Year 2 interest payable = Loan balance outstanding throughout Year 2 * Annual interest rate = $30,000 = 7.5% = $2,250.
Therefore, you would be paying $2,250 interest in Year 2.
Answer:
11,538 units
Explanation:
Given that:
Fixed assets = $150,000
Variable cost = $2
Sales price = $15
Break even point = Fixed cost ÷ Contribution margin
Contribution margin = Sales per unit - Variable cost per unit = $15 - $2 = $13
Break even point (Sales) = $150,000 ÷ $13 = 11,538 units
Therefore, 11,538 widgets must be sold to break even.
Answer:
<em>D. Frequency marketing program</em>
Explanation:
Frequency Marketing <em>is a marketing strategy used to attract and maintain long-term consumers. Frequency marketing covers activities such as daily interval ads, offering loyal consumers discounts, planning events.</em>
As the term indicates, to keep their clients, this form of marketing plan needs to be conducted out at regular intervals. Frequent marketing is a great instrument for ensuring consumer preservation.
This is an established fact that an existing customer provides a business with more profits than a prospective customer, i.e. the sum of money and income generated by an existing customer is more than that generated by a potential customer.
