Answer:
d. inventory is sold at a profit
Explanation:
Net working capital increases when <u>inventory is sold at a profit</u>
Net working capital = Current Assets - Current Liabilities
. Cash, Inventory and receivables are part of current assets
Hence, when inventory is sold at profit, cash received is more than decrease in inventory and hence, current asset increase and hence, working capital increases. When it is sold at cost, it remains the same. Purchase of inventory on credit will lead to same amount increase in current assets and current liabilities. Payment by customer will lead to increase in cash and decrease in accounts receivable, Hence, no impact
Answer:
Letter B is correct
Explanation:
By poorly implementing an information system, the company is at risk of failures in its process, as was the case with Hershey Foods. Lack of information availability is a risk that occurs when the system does not effectively present the information required for tasks to be performed correctly. To prevent this from happening, an information system must always be reviewed and updated periodically to align with the company's strategy.
Answer:
The Break-even annual sales= $2,222,222.22
Explanation:
<em>The break-even sales is the amount of revenue that a business must generate that would equate its total costs to total revenue. At the break even sales, the contribution is exactly to total iced cost, and the business makes no profit or loss</em>
Contribution margin ratio = (20-5)/20=75%
Break-even (units) = Total general fixed cost /(selling price- variable cost)
= 5,000,000/75%
= $6,666,666.67
The annual sales = $6,666,666.67/3 = $2,222,222.22
The Break-even annual sales= $2,222,222.22
Answer:
The answer is Diversity marketing.
Explanation:
Diversity marketing is a form of marketing strategy which recognizes that a target market contains subgroups (ethnicity, age, disability, gender and religion) and therefore seek to reach out or market products and services in a manner that connects with ideals, customs, beliefs and local culture of the group (target market).
Coca-Cola widely utilizes Diversity marketing in marketing her products because the company understands that differences exist within people and the best way to connect with a group (target market) is to use marketing tactics that are in line with the group's ideals, customs, beliefs and local culture.
Answer:
The idea that a higher price means the buying power of income has been reduced.
Explanation:
The income effect is defined as the change in consumption of goods of services after a change of income. If income grows, it is expected that the consumption of goods and services will also grow (this can be measured by the marginal propensity to consume), and viceversa.
If prices rise, the buying power of income will be reduced even if income has grown. If prices rises even more than income, the buying effect of income will fall even more. This two statements can be both explained by the income effect concept.
