Answer and Explanation:
The computation is shown below:
1. Market penetration rates
For alison = 136 ÷1500 = 9.07%
For Sam = 54 ÷ 1500 = 3.6%
So, Total market penetration based on potential customers is
= 9.07% + 3.6%
= 12.67%
2. alison's unit market share is
= alison's business ÷ total business in market
= 439 ÷ (439 + 1450)
= 23.24%
3. alison's revenue is
= $11 × 439
= $4,829
4 alison's revenue market share is = alison's revenue ÷ total revenue
= $4,829 ÷ ($4,829 + 8 × 1450)
= 29.39%
5 relatve market share is
= alison's market in terms of units ÷ competitor's market share in term of units
= 0.2324 ÷ (1 - 0.2324)
= 30.32%
Answer:
Review labor costs downwards
Explanation:
Janet and Omar should consider revising their budget for labor downwards. In the current state, labor costs are $1000, which is approximately 57 percent of all costs. As a rule of thumb, labor costs should be between 25 to 35 percent of total costs. This implies that Janet and Omar's labor costs are very high in relation to the other costs.
Janet and Omar should aim for a profit. Ideally, a 25 to 30 percent profit is a good target for such a business. For this to happen, they need to cut down labor to between $300 to a maximum of $400.
The treasury stock of Magnificent Molding was purchased by the stockholders at an average cost of $0.65 per share.
<h3>What is the average cost?</h3>
The cost which is derived from the division of the total costs by the number of units of such stocks is known as the average cost of the stocks. Using the given information, further computation can be made as below,
Par Value of stocks = $60,000; Further Paid-Up Capital = $135,000. Therefore, the total value will be $(60,000+135,000)=$195,000. The total number of shares will be 300,000.
Solving further,
Hence, the average cost of treasury stock purchased by the shareholders of Magnificent Moldings Inc. is calculated above as $0.65 per share.
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Answer: consist mainly of short-term securities because they pay higher rates.
Explanation:
The yield curve is a curve depicting several yields to maturity or the interest rates across several contract lengths for identical debt contract. The yield curve shows the relationship that exist between the interest rate and time to maturity,
If the yield curve is upward sloping, the marketable securities which are held in a firm's portfolio, and assumed to be held in case of emergencies will consist of short-term securities in order to reduce interest rate risk. As the yield curve is upward sloping, therefore long term securities will be expected to have higher interest rate in the future and therefore a price decline. Because the securities are in case of emergency, it is advisable to have short term securities.
Answer:
an Adjustable-rate Loan (sometimes called an ARM).
Explanation:
A variable-rate mortgage, adjustable-rate mortgage (ARM), or tracker mortgage is a home mortgage with the rate of interest on the bond changed regularly depending on a measure that represents the financing expense to the applicant on the financial markets.
The loan can be given at the regular variable rate / base rate of the lender. There may be a direct and legally defined link to the underlying index, but where the lender does not provide any specific link to the underlying market or index the rate may be changed at the discretion of the lender.