Answer:
$103,400
Explanation:
Does Manuel have any certainties that Nolan will purchase more than 30,000 units during the year? Apparently, according to historic sales, Nolan purchases at least 40,000 units per year, so Manuel should consider that Nolan will again purchase a similar amount this year and therefore, will be entitled to a rebate.
Another issue that must be considered is that 30,000 units / 4 quarters = 7,500 units per quarter, and Nolan clearly purchased more than that.
A rebate is not a discount, it happens when the seller offers a certain amount of goods to a buyer without cost because the buyer purchased more than an specific amount. It is basically an incentive or prize that Manuel gives Nolan for being a good client.
Manuel should recognize $110,000 x (1 - 6%) = $103,400 in revenues
Answer:The cost of capital that will make both investments equal is 17.045%
Explanation:
Investment A
$1.5 million will be received in perpetuity we can there use perpetuity formula to Value investment A.
Value of Investment A = 1500 000/r
Investment B
$1.2 Million will be received in Investment B with a growth rate of 3% will then use Gordon's growth rate model to value investment B.
Value of investment B = (1200 000 x (1+0.03))/(r - 0.03)
Value of investment B = 1236000/(r - 0.03)
1500 000/r = 1236000/(r - 0.03)
1236000(r) = 1500000(r - 0.03)
(r - 0.03) = 1236000( r)/1500000
r - 0.03 = 0.824r
r - 0.824r = 0.03 = 0.176r = 0.03
r = 0.03/0.176 = 0.170454545
R = 17.045%
The cost of capital that will make both investments to be equal is 17.045%
If monopolistic competitors must expect a process of entry and exit like perfectly competitive firms, they will be unable to earn higher-than-normal profits in the long run.
<h3>What is a monopolistic competition?</h3>
A monopolistic competition is an industry characterised by many sellers of differentiated goods and services. A monopolistic competition has characteristics of both a monopoly and a perfect competition. A monopolistic competition sets the price for its goods and services. A monopolistic competition makes economic profit in the long run. An example of monopolistic competition are restaurants
A perfect competition is an industry characterized by many buyers and sellers of identical goods and services. Market prices are set by the forces of demand and supply. In the long run, firms earn zero economic profit due to no barriers to the entry and exit of firms.
Here are the options:
A. they will be unable to earn higher-than-normal profits in the short run. O B. they will wish to cooperate to make decisions about what price to charge.
OC. they will wish to cooperate to make decisions about what quantity to produce.
O D. they will be unable to earn higher-than-normal profits in the long run.
To learn more about monopolistic competition, please check: brainly.com/question/21052250
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Answer:
Customer Lifetime Value
Explanation:
Customer Lifetime Value is a measure of how much amount of money a customer spends on your business/products/services over the course of his whole lifetime.
It is a predictor of how well you are doing to retain your existing customers.
Why is it important?
suppose you spend $10 to advertise your product (belt) and a customer buys 5 belts on average every year for 15 years. You get $12 profit for each belt sold.
$
Subtract the advertising cost
$ This is your customer lifetime value
Now imagine what would have happen if we had to sell these belts to 75 different customers?
The advertising cost to attract 75 customers would have been too much and hence net profit and customer lifetime value would be very less.
$
$
This is why customer lifetime value is important and businesses focus on retaining their customers for longer periods.
Answer:
$135000
Explanation:
Cole should record the patent at $135000. The intangible asset is recorded at the price at which it was purchased. Net carrying value of $160000 in the books of seller is not useful.
At the time of purchase of intangible asset, the fair value of stone stock exchanged was $45.
So the patent cost is =
3000 shares × $45 per share = $135000.
Cole should record the patent at this value.
