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3 years ago

For each of the following pairs of firms, explain which firm would be more likely to engage in advertising.

Business

1 answer:

lions [1.4K]3 years ago

7 0

Answer:

The correct answers are:

a) Family owned restaurant

b) A manufacturer of cars

c) A company that invented a very comfortable razor

Explanation:

First of all, the family who owned a restaurant will be the one that would most likely engaged in advertising due to the fact that they provide a service that has to be known for the people of the community around the place and all the tourists that go that area, meanwhile the other familiy would obviously just sell its products to the better buyer that they could find.

Secondly, the manufacturer of cars would be the one that most likely engaged in advertising due to the fact that they found themselfs in a very competitive and oligopoly market that is the car market and therefore that they highly need to stand out their making them better than the ones from the competitors.

Finally, the company who invented a very comfortable razor would be the one who engaged more in advertising due to the fact that they known they have a better product that the rest of the competitors so they need to take advantage of that and make sure that the consumers know about it and with that they would sell more and therefore invest more in advertising as well.

You might be interested in

How are eggs processed to prepare them for shipping and purchasing by a consumer.

horsena [70]

According to the manufacturing process, the eggs are processed to prepare them for shipping and purchasing by a consumer through the use of an <u>automated machine, called a “breaker</u>."

<h3>What is the Automated Machine known as Breaker?</h3>

The automated machine known as the <u>breaker</u> in the processing and preparation of eggs is known to break the eggshell, and most often segregates the yolks from the whites.

Typically, these eggs are then pasteurized and processed into liquid, frozen or powdered form to be utilized in restaurants and bakeries or to make other products such as mayonnaise or shampoo.

<h3>The processing of eggs usually involved the following process or steps:</h3>

breaking,
filtering,
mixing,
stabilizing,
blending,
pasteurizing,
cooling,
freezing
drying, and
packaging.

Hence, in this case, it is concluded that the correct answer is the use of the <u>automated machine, called a “breaker."</u>

Learn more about Egg Processing here: brainly.com/question/14243761

#SPJ1

8 0

1 year ago

Honduras is a small economy in central america. it keeps a fixed exchange rate with the us. capital is perfectly mobile. you may

rosijanka [135]

Answer:

Given that Honduras is a small economy in Central America, and it keeps a fixed exchange rate with the US, and capital is perfectly mobile, but interest rates are three percent in the US and six percent in Honduras, the explanation of the difference in these interest rates are as follows:

Honduras has a higher interest rate, meaning that its sovereign bonds pay higher values than the American ones, as well as its banks also pay higher interests on their investments compared to American banks.

This is so for a double reason: on the one hand, because the Honduran economy is less reliable than the American economy, which is larger and therefore more solvent and capable of overcoming eventual crises, with which the risk of default is less.

On the other hand, the Honduran economy is more dependent on foreign investment, so it must offer higher interest rates to attract such investments.

5 0

2 years ago

The Stanton Stationery Shoppe wants to acquire The Carlysle Card Gallery for $450,000. Stanton expects the merger to provide inc

ra1l [238]

Question:

The Stanton Stationery Shoppe wants to acquire The Carlysle Card Gallery for $450,000. Stanton expects the merger to provide incremental earnings of about $70,000 a year for 10 years. Carol Stanton has calculated the marginal cost of capital for this investment to be 8%. Conduct a capital budgeting analysis to determine whether she should purchase The Carlysle Card Gallery.

Answer:

Capital Budgeting Analysis is a process of evaluating how we invest in capital assets; i.e. assets that provide cash flow benefits for more than one year.

An organization has to take many decisions regarding the expansion of business and investment. To do that, they will require the help of NPV method and base its decision on the same.

Net present value is used in Capital budgeting to analyze the profitability of a project or investment. It is calculated by taking the difference between the present value of cash inflows and present value of cash outflows over a period of time.

As the name suggests, net present value is nothing but net off of the present value of cash inflows and outflows by discounting the flows at a specified rate.

From the question the following are given:

Capital Expenditure = $450,000
Useful life of expenditure = 10 years
Annual return from expenditure = $70,000
Marginal cost of Capital = 8%

Step 1:

It's formula is given as:

Formula for NPV

NPV = (Cash flows)/( 1+r)i

<em>Where</em>

i- Initial Investment

Cash flows= Cash flows in the time period

r = Discount rate

i = time period

Computing with a spreadsheet, the Net Present Value of the Investment is given at $ 19,706.

Kindly see attached spreadsheet.

Judgement: Since the NPV is positive the investment is profitable and hence Nice Ltd can go ahead with the expansion.

Cheers!

7 0

3 years ago

Borques Company produces and sells wooden pallets that are used for moving and stacking materials. The operating costs for the p

KengaRu [80]

Answer:

Borques Company

a. Unit inventory cost = $7.27

b. Ending inventory = 3,900 units

c. Absorption-costing operating income = $73,569

Explanation:

a) Data and Calculations:

Variable costs per unit:

Direct materials $2.85

Direct labor $1.92

Variable overhead $1.60 $6.37

Variable selling $0.90 $7.27

Fixed costs per year:

Fixed overhead $180,000

Selling and administrative $96,000 $276,000

Selling price per unit = $9

Acceptable per-unit inventory cost:

Variable product cost per unit = $6.37

Total variable production cost = $1,274,000

Fixed production cost = 180,000

Total production cost = $1,453,000

Unit inventory cost = $7.27 ($1,453,000/200,000)

b. Ending inventory

Beginning inventory 8,200

Production units = 200,000

Units available 208,200

Sales units = 204,300

Ending inventory 3,900

c. Absorption Costing Operating Income:

Sales Revenue $1,838,700 ($9 * 204,300)

Cost of goods sold 1,485,261 ($7.27 * 204,300)

Gross profit $353,439

Selling expenses:

Variable ($0.90 * 204,300) 183,870

Fixed 96,000

Total selling expenses $279,870

Operating income $73,569

5 0

2 years ago

On January 1, 2021, Perez Co. issued at par $10,000 of 6% bonds convertible in total into 1,000 shares of Perez's common stock.

marusya05 [52]

Answer:

EPS = $4.50

diluted EPS = $2.46

Explanation:

no option is correct since EPS = $4.50, and the rest of the options are all higher amounts. Diluted EPS are always smaller than EPS.

common stock outstanding = 1,000 stocks

bonds shares (diluted) = 1,000 stocks

net income = $4,500

bond interest = $10,000 x 6% x (1 - 30%) = $420

diluted earnings per share = ($4,500 + $420) / (1,000 shares + 1,000 shares) = $4,920 / 2,000 shares = $2.46

7 0

3 years ago