Answer:
On the 50th day, the purchase cost will be equal to the lease cost
Explanation:
Given that:
- Daily operating costs of $500
- Purchasing cost for the item: $10,000
- Lease amount: $700
Let x is the number of days the purchase cost be the same as the lease cost. As we now that:
The total cost should be equal to the total lease received
<=> 10,000 + 500x = 700x
<=> 200x = 10000
<=> x = 50
Hence, on the 50th day, the purchase cost will be equal to the lease cost
Answer:
Revenue: The revenue of Manufacturing company comes from the sale of the products that they manufacture. However the merchandising company purchases goods from manufacturing companies and distribute them to make it easier for the customer to access the product and earn a profit on it which increases the cost of the product to end consumer. The contract between the manufacturing and merchandising company can be an agreement of principal and agent. In this case, the revenue for the merchandising company would be commission earned from manufacturing company. This commission paid to merchandising company will be cost to manufacturing company.
Cost of Sale: Now the raw material costs plus depreciation of production machinery plus direct labour plus variable Overhead cost plus if their is any commission paid for sale of finished goods will be the cost of sale for manufacturing company. Whereas in the case of Merchandising company, the cost of sale will be only the cost of goods they sold in the year. The depreciation charge will be minor in merchandising company as they don't have any production machineries.
These the are major difference between manufacturing and merchandising company.
Explanation:
Answer: See explanation
Explanation:
a. Determine the net income for July using the cash basis of accounting.
Revenue = $3800 + $1100 + $5100 = $10000
Less: Expense = $1200
Net Income = $10000 - $1200 = $8800
b. Determine the net income for July using the accrual basis of accounting.
Revenue = $8600 + $3800 = $12400
Less: Expense = $1300
Net income = $12400 - $1300 = $11100
Answer:
The given above statement that advertising helps in developing and managing brand is true.
Explanation:
For a company, brand management ( which means developing and maintaining brand image of your company, in order to create a good relationship with its target consumers ) is very important for its success and proper advertising and promotion can help in creating a good brand image of the company.
With the help of advertisement, a company can deliver a message to its target consumers telling about the benefits of its brands and why their brand is much better than other competitors , and by delivering this message , a company would be able to influence the purchase decision of its consumers.
