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3 years ago

When Nintendo sets a relatively low price on game units to stimulate more demand for its game cartridges, it is using

Business

1 answer:

torisob [31]3 years ago

4 0

Answer:

Letter A is correct.<em> Complementary product pricing.</em>

Explanation:

Organizations use the strategy of adopting a complementary product pricing to increase the total profit of a product group.

This strategy is used when the company sells products that are complementary, ie the use of one is complemented by the use of the other, so the company substantially decreases the price of a product, usually just to cover costs, and guarantees gains from a product with a high price and very high profit margin.

The benefits added to the complementary price of a product are market gain, competitors' entry barriers and retention and attraction of new consumers.

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Kent bought a $2,000, 20-year U.S. Treasury bond that paid six percent annual yield when he was 22. How much would that bond be

Alenkasestr [34]

The bond worth $ 4400 at the time of the bond maturity.

<u>Explanation:</u>

Principal amount = $ 2000

Rate of Interest = 6%

Number of years = 20

SI = Pnr

= 2000 × 6 × 20 / 100

= $ 2400

The bond worth when it was matured is $ 2000 + $ 2400 = $ 4400

3 0

3 years ago

Marston acquired assets for $100,000. At the end of year 3, the assets had accumulated depreciation of $40,000. An impairment lo

MissTica

Answer:

(b)-Debit to loss on impairment of $12,000

Explanation:

As for the details in question,

The asset purchase price = $100,000

Accumulated depreciation = $40,000

Thus, book value = Purchase price - Accumulated depreciation = $100,000 - $40,000 = $60,000

Now, this has a fair market value = $48,000

Thus, loss of value to be recorded as impairment loss = $60,000 - $48,000 = $12,000

Since loss in value will decrease the value of asset, it will be debited against credit in fixed assets by $12,000

This, will represent book value = $48,000

Therefore, correct option is:

Statement B

7 0

3 years ago

Present an example where data mining is crucial to the success of a business. What data mining functions does this business need

Kitty [74]

Answer:

Data mining refers to the ability of an organization to extract relevant information for a large reservoir of data that belong to its users for the purpose of increasing service/product efficiency.

One example of a company that requires data mining for the success of its business is Amazon. Amazon is categorized by many as an online retail giant. Their Customer-Centric approach to doing business is enhanced by their ability to leverage off historical data to reduce the time spent on resolving customer queries and/or complaints.

Generally, there are four basic data mining functions. They are:

Prediction Function: This function allows for the owner to spot patterns in behavior and use this as a yardstick to predict for forecast other variables that will enable the increment in the quality of value offered/delivered.
Function Description: This functionality highlights attributes of a set of data in the database
Classification Function: This is very close to Function Description only that in this case, it helps in the creation of a model that describes the class or concept of data.
Association Function: This functionality highlights the relationship between data

The above functions cannot be carried out by data query processing or simple statistical analysis because data mining involves the identification of patterns and relationships using algorithms whilst data query refers to the issuance of instructions in search of specific results.

Cheers

7 0

3 years ago

Amex Corporation invests excess cash to purchase $25,000 in corporate bonds on March 30, 2018. In addition to the $25,000, Amex

damaskus [11]

Answer:

b. a debit to Held-to-Maturity Debt Investments for $26,000

Explanation:

Investment in corporate bonds is considered as Held-to-Maturity Debt investments.

Date Accounts Title and Explanation Debit Credit

30 Mar 18 Held-to-Maturity Debt investments $26,000

[$25,000 + $1,000)

Cash $26,000

(To record an investment in bonds)

Therefore, in the journal entry, it is debited to Held-to-Maturity Debt investments for $26,000

7 0

3 years ago

Below are Company Y's financial statements:

kow [346]

Answer:

Company Y

The external financial needed is:

= $1,290.

Explanation:

a) Data and Calculations:

Company Y's financial statements:

Income Statement

Sales $7,900

Costs 5,500

Taxable income $2,400

Taxes (25%) 600

Net income $1,800

Balance Sheet

Current assets $3,900

Fixed assets 8,600

Total assets $12,500

Current liabilities $2,100

Long-term debt 3,700

Equity 6,700

Total liab. & equity $12,500

Projected Income Statement:

Sales $9,085 ($7,900 * 1.15)

Costs 6,325 ($5,500 * 1.15)

Taxable income $2,760

Taxes (25%) 690

Net income $2,070

Dividends = 40% $828

Retained earnings $1,242

Projected Balance Sheet

Current assets $4,485 ($3,900 * 1.15)

Fixed assets 9,890 ($8,600 * 1.15)

Total assets $14,375

Current liabilities $2,415 ($2,100 * 1.15)

Long-term debt 4,018 ($14,375 - 2,415 - 7,942)

Equity 7,942 ($6,700 + $1,242)

Total liab. & equity $14,375

Working capital = $2,070 ($4,485 - $2,415)

Capital expenditure = $1,290 ($9,890 - 8,600)

External financing needed = Net income minus (working capital plus capital expenditure)

= $2,070 - ($2,070 + 1,290)

= $1,290

7 0

3 years ago