1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Doss [256]
3 years ago
10

Bill is the owner of M.E. Inc., which produces miniature internal combustion engines that are used to operate hydraulic systems

in heavy machinery. Bill wants to expand his market share by three share points. Total industry sales are $120 million; M.E. Inc. sales are $30 million with a gross margin of $1.2 million. The total industry marketing expenditures are $4 million; M.E.'s current marketing budget is $1 million. What is the amount of the gain/loss M.E. Inc. will experience if they make the investment to acquire three additional market share points, and should M.E. Inc. make this investment
Business
1 answer:
Anna11 [10]3 years ago
4 0

Answer:

ME should make the investment because it results in not only higher market share but also a $24,000 increase in profits.

Explanation:

Currently ME's marketing expenditures represent 25% of the industry's marketing expenditures and it matches his market share. Using the competitive parity approach, three additional market share points should cost $120,000 ($40,000 for each point) and should increase gross profits to a total of $1,344,000 ($144,000 increase). The difference between incremental revenue and incremental expenses = $144,000 - $120,000 = $24,000.

You might be interested in
Consider the following scenario. Two friends, Rachel and Joey, enjoy baking bread and making apple pies. Rachel takes two hours
Damm [24]

The correct option is B

Explanation:

3. b) Rachel in specialize in making pies and joey should specialize in making bread.

Rachel can make 1 pie in one hour so she is already taking less time to make a pie than to make a bread. thus,if she should specialize in making pie.while coming to joey, joey takes 4 hours to make either pie or bread so he left with only one option i.e, to be specialized to make bread only.so that they can maximize their oupu

5 0
3 years ago
2 reasons why it is important to learn how to use a budget
My name is Ann [436]
 1) So you don't go over your limit 
2) learn how to not spend your money all at one tme
5 0
3 years ago
The "Brasher doubloon," which was featured in the plot of the Raymond Chandler novel, The High Window, was sold at auction in 20
Strike441 [17]

Answer:

The time line from minting to the first sale is:

0-192

$15 - $430,000

we can use either the FV or the PV formula. Both will give the same answer since they are the inverse of each other. We will use the FV formula, that is:

FV = PV(1 + r)t

Solving for r :

r = (FV/PV)1/t - 1

r = ($430,000/$15)1/192 - 1

r = .0549, or 5.49%

The time line from the first sale to the second sale is:

0-35

$430,000 - $4,582,500

we can use either the FV or the PV formula. Using the FV formula, that is:

FV = PV(1 + r)t

Solving for r:

r = (FV/PV)1/t - 1

r = ($4,582,500/$430,000)1/35 - 1

r = .0699, or 6.99%

The time line from minting to the second sale is:

0-227

$15 - $4,582,500

we can use either the FV or the PV formula. Both will give the same answer since they are the inverse of each other. We will use the FV formula, that is:

FV = PV(1 + r)t

Solving for r, we get:

r = (FV/PV)1/t - 1

r = ($4,582,500/$15)1/227 - 1

r = .0572, or 5.72%

6 0
3 years ago
Clonex Labs, Inc., uses the weighted-average method in its process costing system. The following data are available for one depa
Step2247 [10]

Answer:

The equivalent units of production for October are :

Raw Materials = 423,750

Conversion Costs = 418,500

Explanation:

<u>Calculation of Equivalent Units of Production</u>

1. Raw Materials

Ending Work In Process Inventory (25,000 × 71%)          17,750

Completed and Transferred (406,000 × 100%)           406,000

Equivalent Units of Production for Materials                 423,750

2. Conversion Costs

Ending Work In Process Inventory (25,000 × 50%)        12,500

Completed and Transferred (406,000 × 100%)           406,000

Equivalent Units of Production for Materials                 418,500

3 0
3 years ago
A company purchased land for $90,000 cash. real estate brokers' commission was $5,000 and $7,000 was spent for demolishing an ol
Fed [463]

Based in the historical cost principle, the total cost of the land would be the summation of all cost, either direct or indirect.

Therefore it would be:

Cost of Land = $90,000 cash + $5,000 commission + $7,000 demolishing

Cost of Land = $102,000

 

<span> </span>

3 0
3 years ago
Other questions:
  • Crane Company purchases a patent for $161,900 on January 2, 2022. Its estimated useful life is 5 years. (a) Prepare the journal
    8·1 answer
  • When gregg steiner became the vice president for cleveland-based pinxav, he knew the diaper-rash product manufacturer's sales we
    6·1 answer
  • company purchased factory equipment on June 1, 2013, for $80,000. It is estimated that the equipment will have a $5,000 salvage
    13·1 answer
  • In order to compare and evaluate choices, there must be a set of
    10·1 answer
  • The statement, "With its 25 percent market share, this is the best-selling laser printer on the market today," is an example of
    7·1 answer
  • If current market interest rates rise, what will happen to the value of outstanding bonds?
    7·1 answer
  • 1. Machine A and Machine B can produce 1 widget in 3 hours working together at their respective constant rates. If Machine A's s
    11·1 answer
  • Ceilings are thought to represent the level at which more difficult questions would not be passed.
    5·1 answer
  • Mars, America’s second-largest candy company, began doing business in Russia in the late 1980s. The Snickers bar is one of the t
    11·2 answers
  • - Strategic planning as a broad concept consists of
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!