The answer is D. An increased interest rate.
The bank will increase the interest rates on loans to get a return on their expenses.
Answer:
$30,000 and $360,000
Explanation:
The computation of the gain on the exchange is shown below:
= Cash received + fair value of the computer - undepreciated cost of existing computer
= $120,000 + $360,000 - $450,000
= $30,000
The amount of the computer which is recorded will equal to the fair value of the computer i.e $360,000
For computing the gain we simply added the fair value and deduct the undepreciated cost of an existing computer in the cash received amount so that the accurate amount can come.
All other information which is given is not relevant. Hence, ignored it
Answer:
C) allows existing customers to upgrade to a newer model by trading in their older model.
D) though it previously offered free delivery, now charges for deliveries made outside the city.
Explanation:
If ABC company wants to change low profit customers into more profitable customers, they need to:
- encourage low profit clients to buy larger quantities by offering promotions (e.g. get a discount if you buy a bike, helmet and other gear all together)
- forgo certain services or features to low profit customers, e.g. free delivery only for expensive bikes
- increase the price of your product for low profit customers (e.g. charge a delivery cost for cheap bikes)
- offer upgrading options to low profit clients