The cost of the merchandise inventory that the business ▼ has sold to customers.

Step2247 [10]

<u>Answer:</u> Upsell

<u>Explanation:</u>

Product enhancement means adding any additional features or functions to the existing products. The product managers keep adding these features to increase the market share of the product sold. It is also a marketing technique used by the companies to prove their products better than the competitors products.

By following product enhancement strategy the company tries to upsell the products. It protects the product from being out of the market and also increases the product's capability. The usability and performance of the product also increases.

8 0

3 years ago

Consider the following information about a banking system: new currency deposited in the system = $40 billion, legal reserve rat

Vlada [557]

Answer:

The bank will create excess reserve of $200 billion

Explanation:

The question measures the size of credit expansion associated with the new currency deposit. the computation below shows how excess reserves can be computed.

Money multiplier = 1 /Legal Reserve Ratio = 1/0.2 = 5

Excess Reserve Created = A x (1 /Legal Reserve Ratio)

Where: A = New currency deposit = $40

Legal Reserve Ratio = 0.20

Excess Reserve Created = $40 x (1/0.2) = $40 x 5 = $200 billion

The legal reserve of 5 indicates that for every unit of money reserved by banks, they are able to create 5 units of same.

The money creation capability of the banking system as a whole is depends on the legal reserve ratio. Legal reserve ratio is a fraction of a bank deposit which the law requires them to hold. The bank can only lend the balance after deducting the legal reserve.

3 0

3 years ago

Gardner Corporation manufactures skateboards and is in the process of preparing next year's budget. The pro forma income stateme

Serhud [2]

Answer:

$636,364

Explanation:

Calculation to determine what The break-even point for Gardner Corporation for the current year is

First step is to calculate the Variable costs

Variable costs = $250,000 + $150,000 + $75,000 + $200,000

Variable costs = $675,000

Second step is to calculate the Contribution margin ratio

Contribution margin ratio = (Sales - Variable costs) / Sales

Contribution margin ratio= ($1,500,000 - $675,000) / $1,500,000

Contribution margin ratio= 0.55*100

Contribution margin ratio = 55%

Now let calculate the Break-even point

Break-even point = Fixed costs / Contribution margin ratio

Break-even point= ($100,000 + $250,000) / 0.55

Break-even point = $636,364

Therefore The break-even point (rounded to the nearest dollar) for Gardner Corporation for the current year is:$636,364

6 0

3 years ago

Suppose the money supply (as measured by checkable deposits) is currently $850 billion. The required reserve ratio is 20%. Banks

Dmitrij [34]

The proposal was incidental to a plan to require gold certificate reserves be kept behind Federal Reserve notes. No.

7 0

3 years ago

Southwest Airlines and Carnival Cruises collaborated to market "fly and cruise" specials from major cities to Carnival's ports i

zheka24 [161]

Answer: Cross-promotion

Explanation:

Southwest airlines and Carnival cruises are engaged in a Cross-promotion, where the both companies services are used to promote to other.

Cross-promotion simply is a business concept, whereby a product/service is used to promote another product/service. An example is a soft drink production company promoting the consumption of their soft-drink products with snacks produced by a particular popular fast-food restaurant.

4 0

3 years ago