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Katena32 [7]
3 years ago
15

Cool Beans is a locally owned coffeeshop that competes with two large coffee chains, PlanetEuro and Frothies. Alicia, the owner,

is considering two different marketing promotions and thinks that CLV analysis will help her decide the best course of action. An average specialty coffee drink sells for $3.52 and has a margin of 74%. One promotion is providing loyalty cards to her regular customers that would give them one free specialty coffee drink after 10 regular purchases. Alicia estimates that this will increase the frequency of their purchases by 16%. Currently, her customers average buying 2 specialty drinks per week.The second promotion is targeted at new customers. She would offer a free specialty drink to incoming college freshmen by providing a coupon with their orientation packages. Because of her location near the college, she expects that 540 students will come to Cool Beans for a free trial. Of those, she anticipates that 18% will become regular customers who will purchase at least one specialty drink each week. The cost of printing and distributing the coupons is $139. What is the dollar margin per specialty drink served?
Business
1 answer:
erma4kov [3.2K]3 years ago
5 0

Answer:

0.9717 per unit sold (approx)

Explanation:

Here, we are assuming 52 weeks in a year.

Contribution margin:

= (Sales revenue - variable cost) ÷ sales revenue

= [(3.52 × 10 + 3.52 × 0.18 × 540 × 52) - (3.52 × 0.26 × 551)] ÷ (3.52 × 10 + 3.52 × 0.18 × 540 × 52)

=  [(35.2 + 17,791) - (504)] ÷ (35.2 + 17,791)

= [17,826.2 - 504] ÷ 17,826.2

= 17,322.2 ÷ 17,826.2

= $0.9717 per unit sold (approx)

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The Roland Company needs to comply with the financial reporting standards of the Sarbanes-Oxley Act. One of the employees, Ken,
77julia77 [94]

Answer:

The boss is correct.

Explanation:

Under Sarbanes-Oxley Act, a  rules-based approach to corporate governance and reporting is used. It is based on the view that companies must be

required by law (or by some other form of compulsory regulation) to comply with established  principles of good corporate governance.

Except in the instances of exceptions provided in the act, company has no choice than to comply regardless of the cost implication because non-compliance is punishable under the act. Sometimes, it is called tick box approach

This is contrary to what is obtainable in a principled-based approach where allowance is given for explanation in the event of possible con-compliance.

7 0
3 years ago
Uniform Supply accepted a $6,300, 90-day, 8% note from Tracy Janitorial on October 17. If the note is dishonored, but Uniform Su
Dovator [93]

Answer:

Debit Cash $6,426; credit Interest Revenue $21; credit Interest Receivable $105, redit Notes Receivable $6,300.

Explanation:

Based on the information given the appropriate journal entry that Uniform Supply should make on January 15 of the next year will be:

Debit Cash $6,426

($6300+$105+$21)

Credit Interest Revenue $21

($6300*8%*15/360)

Credit Interest Receivable $105

(6300*8%*75/360)

Credit Notes Receivable $6,300

6 0
3 years ago
Sally and Dan must pay 2 points on their new $65,000 loan. What will they have to pay at closing for the points?
gayaneshka [121]

Answer:

correct option is B. $1,300

Explanation:

given data

loan = $65,000

pay = 2 points

solution

As we know normally point worth = 1%

and they pay 2 point so that

2 point = 2 % = 0.02

so pay at closing for the points will be

pay closing for the points = 0.02 × loan amount .....................1

pay closing for the points = 0.02 × $65000

pay closing for the points = $1300

so correct option is B. $1,300

8 0
3 years ago
You own a computer company, and you launch a joint venture with a competitor to create a new super-speed tablet. Unfortunately,
Harlamova29_29 [7]

Answer:

Failing to analyze and take into account the competitor technological environment.

Explanation:

When initiating a new joint venture, a company must analyze many environments, such as cultural, organizational, financial, technological, processual, and others. In this case, it was necessary to analyze the current technological competitor environment to check the compatibility of operating systems and the cost and viability of adjusting accordingly. Nothing was done, hence the joint venture’s failure.  

4 0
3 years ago
The economy is in short-run equilibrium when __________. a. aggregate demand intersects short-run aggregate supply. b. short-run
s2008m [1.1K]

Answer:

A. aggregate demand intersects short-run aggregate supply

Explanation:

Short run occurs when the amount a firm wishes to supply is equal to the amount demanded from the consumers. It is the area on the graph where the aggregate demand curve intersect with the short run supply curve.

Or, simply put, when the aggregate output supplied is equal to the aggregate output demanded. The equilibrium is made up of equilibrium prices and quantity.

5 0
3 years ago
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