Answer:
The correct answer is letter "E": economies of scale.
Explanation:
Economies of scale mean productivity becomes more efficient as the number of goods produced increases. In most cases, companies that achieve economies of scale lower the average cost of their products by increasing production which is due to the spread of fixed costs required to produce the product among a large number of goods. Lower production costs typically represent lower prices for consumers.
Answer:
The correct answer is letter "A": to appeal to both high and low involvement consumers.
Explanation:
Strong arguments are those that provide probable support for an idea. Weak arguments fail to provide support for different matters. Then, when talking about marketing, strong arguments are more likely to engage consumers with a product while weak arguments can attract consumers at low levels but the ideas lack reliability.
Thus,<em> infomercials can make use of both strong and weak arguments at different levels of consumer involvement.</em>
Answer:
a. It will take her 5 years to pay for her wardrobe
b. She should shop for a new card once she is done paying for this one.
c. She should shop for a new card after finishing paying for this card since going further into debt with the current card would be a bad idea. This is due to the fact that an annual interest rate of 16% is very high. The best option would therefor to finish her payments on the credit card, then shop for a new card with a lower annual interest rate.
Explanation:
Use the formula below to determine the number of months it would take Rachel to pay off her debt;
C *{1-(1+r)^(-n×t)}/(r/n)=PV
where;
C=annuity
r=annual interest rate
n=number of compounding periods in a year
t=number of years
PV=present value
In our case;
PV=$10,574
C=$260
r=16%=16/100=0.16
n=12
t=unknown
replacing;
260*{1-(1+0.16/12)^(-12×t)}/(0.16/12)=10,574
1-(1+0.16/12)^(-12×t)={10,574×(0.16/12)}/260
1-{1.013^(-12 t)}=0.542
(1-0.542)=1.013^(-12 t)
ln 0.458=-12 t (ln 1.013)
t=-ln 0.458/12×ln 1.013
t=5
It will take her 5 years to pay for her wardrobe
b. She should shop for a new card once she is done paying for this one.
c. She should shop for a new card after finishing paying for this card since going further into debt with the current card would be a bad idea. This is due to the fact that an annual interest rate of 16% is very high. The best option would therefor to finish her payments on the credit card, then shop for a new card with a lower annual interest rate.
Answer:
The correct answer is option d.
Explanation:
Price discrimination is said to be existing if the same seller is selling same goods and services at different prices.
For price discrimination the seller must be able to differentiate market on the basis of price elasticity of demand. Higher price is charged where demand is less elastic.
The seller must have some degree of monopoly power.
The seller must prevent reselling of goods between the two market segments.
The different price elasticity for sellers and buyers is not a necessary condition.
Answer:
The free cash flow is $2,300
Explanation:
To compute the free cash flow, we have to apply the formula which is shown below:
= Earning before income and taxes × ( 1 - tax) + amortization & depreciation - capital expenditure - changes in working capital
where,
Earning before income and taxes = Sales - operating cost - depreciation
= $10,750 - $5,500 - $1,250
= $4,000
And other values remain same
Now put these values to the above formula
So, the answer would be equal to
= $4,000 × (1 - 40%) + $1,250 - $1,350
= $2,300
