What are the four Ps of marketing

Tammy just moved to an area that will soon get cold. She owns some sweaters, but she is not fond of them. She also does not own

Natalka [10]

Her needs must be met before her wants.

3 0

2 years ago

g Suppose that if GSI drops the price on the Glucoscan 3000 immediately, it can increase sales over the next year by 30% to 130,

Amanda [17]

Complete Question:

Glucose Scan Incorporated (GSI) currently sells its latest glucose monitor, the Glucoscan 3000, to diabetic patients for $129. GSI is considering lowering the sale price to $99 per unit. The cost of goods sold for each Glucoscan unit is $50, and GSI expects to sell 100,000 units over the next year. The marginal corporate tax rate is 40%. Suppose that if GSI drops the price on the Glucoscan 3000 to $99 immediately, it can increase sales over the next year by 30% to 130,000 units.

Also suppose that for each Glucoscan monitor sold, GSI expects additional sales of $100 per year on glucose testing strips and these strips have a gross profit margin of 75%. These strip sales occur on all monitor sales regardless of the price of the monitor. Including the increase in the sale of testing strips, the incremental impact of this price drop on the firms EBIT is closest to:

Answer:

$720,000

Explanation:

Incremental Earnings Before Interest and Tax Analysis

Details Current price Reduced price

Units Sold 100,000 130,000

Unit sales price 129 99

Sales Revenue $12,900,000 $12,870,000

Cost of Goods sold at $50 5,000,000 $6,500,000

Gross Profit $7,900,000 $6,370,000

G. Profit on Strips sold at $75 $7,500,000 $9,750,000

Total Gross Profit for the year $15,400,000 $16,120,000

The Net benefit of this price change is increase of Earnings before interest and tax by $720,000.

3 0

2 years ago

During the month of July, Clanton Industries issued a check in the amount of $934 to a supplier on account. The check did not cl

Ganezh [65]

Answer: deduct the check amount from the bank balance

Explanation:

From the question, we are informed that during the month of July, Clanton Industries issued a check in the amount of $934 to a supplier on account but the check did not clear the bank during July.

Since we are told that the check did not clear the bank in July, when preparing the July 31 bank reconciliation, the company should make sure that the amount on the check is deducted from the balance of the bank.

4 0

3 years ago

What’s the disadvantage of the stock repurchases relative to the dividend payments? Stock repurchase can help avoiding setting a

Snezhnost [94]

Answer:

Firms may have to bid up stock price to complete repurchase, thus paying too much for its own stock.

Explanation:

Generally, the price of stocks are not fixed, so it might take a long time for a stock repurchase or buyback to be completed. Investors like buybacks since they tend to increase the price of stocks, but it makes them more expensive for the corporation to repurchase them.

Buybacks are seen positive by investors because they will eventually increase the earnings per share (by decreasing the number of shares outstanding) and they are also taxed in a lower rate than normal income. Management will tend to start buybacks when they believe the stock price is undervalued and they have excess cash. This way they will achieve achieve two objectives with one action:

lower equity costs
increase stock price

8 0

3 years ago

Mega Skateboard Supplier had net sales of $2.4 million, its cost of goods sold was $1.3 million, and its net income was $.8 mill

VARVARA [1.3K]

Answer:

45.83%

Explanation:

The Gross Margin Ratio is a profitability ratio . It compares the gross margin of a business to its net revenue.

The formula for calculating gross profit ratio is

Gross Profit Margin ration = Net Sales− COGS

Net Sales

COGS is the cost of goods sold.

For Megascape board

Net sales= $2.4 million,

COGS =$1.3 million,

gross profit margin ratio = $2.4 - $1.3

$2.4

=$1.1/$2.4 x 100

=45.83%

8 0

3 years ago