Answer: b. Cash Cow
In the Boston Consulting Group’s market growth/market share matrix, a business is classified as a cash cow if it holds the leading market share in its market, but the market does not provide much opportunities for growth.
Since Tide holds a predominant share in the detergent market in United States and since the detergent market is saturated, we can classify Tide as a cash cow.
The cash generated from cash cows are generally used to fund other projects and research and development.
Answer:
Equivalent units of production= 3,520
Explanation:
Giving the following information:
Ending inventory of Work in Process (80% complete) 400 units
Total units started during the year 3,200 units
<u>To calculate the equivalent units using the weighted-average method, we need to use the following formula:</u>
<u></u>
Units completed in the period + Equivalent units in ending inventory WIP (units*%completion) = Equivalent units of production
Equivalent units of production= 3,200 + (400*0.8)
Equivalent units of production= 3,520
Answer:
85.3%
Explanation:
since profits = 20% of total revenue, so total revenue = $15,000 / 20% = $75,000
That means that total revenue must grow from $1,000 to $75,000 in just 7 years. We can use the future value formula to determine the growth rate:
future value = present value x (1 + r)ⁿ
$75,000 = $1,000 x (1 + r)⁷
(1 + r)⁷ = $75,000 / $1,000 = 75
⁷√(1 + r)⁷ = ⁷√75
1 + r = 1.853
r = 1.853 - 1 = 0.853 = 85.3%
Answer:
b. $22.75
Explanation:
We know that
Contribution margin per unit= Sales price per unit - variable cost per unit
Since the selling price is $35
And, the contribution margin is 35%
Therefore, the contribution margin per unit would be
= $35 × 35 per cent
= $12.25
Now add these figures in the formula above.
Hence, the value would be equal to
= $35 - $12.25
= $22.75
The inventory and labor costs are included in the variable cost
B. Inflation
Inflation is when a country prints too much money, therefore decreasing the value of the currency.
