Answer:
The total estimated CLV over a 5 year time horizon for someone who purchases a new vehicle at Eastern Motors is $3,410.40.
Explanation:
Margin on selling vehicle = Average vehicle selling price * Margin = $23,700 * 11% = $2,607
Margin generated by 78% of people who return for service over 5 years = Number of times * Margin generated on each service = 10 * $103 = $1,030
Total estimated customer lifetime value (CLV) = Margin on selling vehicle + (Margin generated by 78% of people who return for service over 5 years * 78%) + (Margin generated by 226% of people who do not return for service over 5 years * 22%) = $2,607 + ($1,030 * 78%) + ($0 * 22%) = $3,410.40
Therefore, the total estimated CLV over a 5 year time horizon for someone who purchases a new vehicle at Eastern Motors is $3,410.40.
Answer and Explanation:
There is no copyright infringement here. Savant homes had not taken a copyright protection for the design prior to this time. Also in the case it was found that the design is not in fact a unique design by Savant homes as it is used widely and was common before savant homes used it. And so it was a dummy model for everyone to copy from. Therefore the infringement was considered invalid as there was no ground for savant homes to claim it as am intellectual property
Answer and Explanation:
According to the scenario, computation of the given data are as follow:-
Total Sales = No. of Subscription Sold × Advance Price of Subscription
= 500 × $60 = $30,000
August Month Received Amount = (No. of Subscriber × Paid Amount) ÷ (1÷12
)
=(350×$60)÷1÷12
= $21,000 ÷ 12
= $1,750
Balance Sheet
Particular Assets($) Liabilities($) Stockholder Equity($) Income($)
Cash 36,000
Unearned revenue 36,000
Earned revenue -1,800 -1,800
Total 36,000 34,200 -1,800
Income Statement
Income Amount ($) Expense ($) Amount ($)
Earned Revenue -1,800
Solution:
Differential Analysis:
Continue Eliminate Net income
Inc/Dec
Sales 201000 0 -201000
variable cost 176000 0 176000
Contribution margin 25000 0 -25000
Fixed cost 30000 20300 9700
Net income / (loss) -5000 -20300 -15300
No, The Product line shall not be eliminated
