A channel of distribution is defined as a group of individuals and organizations that b) directs the flow of products from producers to customers.
A channel of distribution is the channel where products move from each stage all the way down into the consumers hands. Different company's and their products may have differences in their distribution path but, they allow follow a path of some sort.
The first law of demand states that as price increases, less quantity is demanded. This is why the demand curve slopes down to the right. Because price and quantity move in opposite directions on the demand curve, the price elasticity of demand is always negative.
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Answer:
$3,176 , it's two months of interests $1,588 + $1,588
Explanation:
If the company paid each month 1/12 of capital plus interest it means that it's necessary to deduct the total amount of interests paid each month.
The company paid $25,588 and the monthly capital it's $24,000, therefore the company paid on interest an amount of $1,588 each month.
The issue of a one year installment note means that the company repay the principal to the lender in a series of periodic payments, in this case each month pay principal plus interests
In the income statement we have to applied the accrual criteria which means that the company only recognize the interest paid in the past months, November and December.
Answer: B) A loss of $200,000 on its income statement in the year the bonds are called.
Explanation:
The bonds were issued at Par. This means they were issued at 100 of par.
The bonds are now trading at 104 of par.
If Sand Inc calls the bonds then they will make a profit (loss) of,
= 5,000,000 * 104/100
= $5,200,000
Therefore their Profit (loss) will be the bond at par minus the Calling price
= 5,000,000 - 5,200,000
= -$200,000
That means they make a loss of $200,000 in the year the bonds are called.
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Answer:
a. Break-even point in sales units = 350,000 units
b. Break- even point in sales units to achieve a target profit of $400,000 = 430,000 units
Explanation:
a. Break-even point in sales units = Fixed cost ÷ Contribution margin per unit
= $1,750,000 ÷ $5
= 350,000 units
Working note:- Contribution margin = $15 - $10 = $5
b. Break- even point in sales units to achieve a target profit of $400,000 = fixed cost + Targeted profit ÷ Contribution margin per unit
= $1,750,000 + $400,000 ÷ $5
= $2,150,000 ÷ $5
= 430,000 units