When a manufacturer saturates the market, the manufacturer is engaging in intensive distribution.
Intensive distribution can be define as the way in which companies or manufacturer made available or distribute their products from retail outlet to wholesaler outlet.
Most companies use intensive distribution marketing strategy to increase sales and to sell out the products in their warehouse so as to restock or restore new products.
Intensive distribution help to create product awareness to those people that are not aware of the products due to the fact that the products can be find everywhere.
Inconclusion the manufacturer is engaging in intensive distribution.
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Answer:
b. $660,000.
Explanation:
Deferred revenues or unearned revenues refer to money that a company received in advance for goods or services that it still has delivered or provided. In this case, the company hasn't provided services for years 2017, 2018 and 2019 = $200,000 + $320,000 + $140,000 = $660,000
Answer: 1. Convertible bond
2. Putable bond
3. Purchasing power bond.
Explanation:
The $100,000 investment is a convertible bond. This is a fixed-income debt security which yields interest payments. It should be noted that it can also be converted to equity shares or common stock.
Nazeem should pick a putable bond. This is because the puttable bond has a put option that is embedded ans he can also demand his principal to be paid early.
Nazem also recently bought bonds that have their interest rate tied to the consumer price index (CPI) so that he will be protected if inflation rates increase. Nazem has invested in purchasing power bond .
Answer:
1. Going concern
2. Economic entity
3. Monetary unit
4. Periodicitys
Explanation:
1. Since Jumbo's Restaurant is planning to close, the assumption of continuity (going concern) is no more applicable. This should be disclosed. Instead asset was still recorded at historical price which is misleading.
2. Gorloks Tax Services is an economic entity, and the property and assets of owners are not considered to be for the business. In this case the boat Sam bought was wrongly reported as an asset of the company.
3. Claim Jumpers when reporting the 5 trucks purchased must include a monetary value for them. The assumption of monetary unit states that all items reported on the balance sheet must be expressed in monetary terms.
4. Cobbler's Etc violated the assumption of periodicity which states the financial position of the business must be declared in a particular accounting period. Accounting period can monthly, quarterly, biannually, and yearly. The business should choose and accounting period and ensure financial position is reported for each of them. In this case financial reporting is not consistent with reporting happening after 14 months and before that 18 months.
Answer:
Total cost= $877,500
Explanation:
<u> First, we need to calculate the unitary variable cost:</u>
Unitary variable cost= 135,000 / 30,000= $4.5
Unitary variable cost= 180,000 / 40,000= $4.5
Unitary variable cost= 225,000 / 50,000= $4.5
<u>Now, the total cost for 35,000 hours:</u>
Total cost= Unitary variable cost*total number of hours + fixed costs
Total cost= 4.5*35,000 + 720,000
Total cost= $877,500
