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vlabodo [156]
3 years ago
9

Kitchen magazine plans to license the use of its name by a line of cookware. For a magazine, licensing the use of its name for p

roducts involves some danger, since if the products disappoint consumers, the magazine's reputation suffers, with consequent reduction in circulation and advertising. However, experts have evaluated the cookware and found it superior to all other cookware advertised in Kitchen. Therefore, Kitchen can collect its licensing fees without endangering its other revenues.The argument above assumes which of the following?(A) No other line of cookware is superior to that which will carry the Kitchen name.(B) Kitchen will not license the use of its name for any products other than the line of cookware.(C) Makers of cookware will not find Kitchen a less attractive advertising vehicle because the magazine's name is associated with a competing product.(D) Consumers who are not regular readers of Kitchen magazine will be attracted to the cookware by the Kitchen name.(E) Kitchen is one of the most prestigious cooking-related magazines.
Business
1 answer:
babunello [35]3 years ago
5 0

Answer: Option C

Explanation:  

A. In the above case the statement stating superiority of cookware is stated by the experts themselves thus it cannot be considered an assumption.

B. The above case clearly states that the magazine generates revenues from advertising thus it is not an assumption made, actually its a fact stated in the case that magazine will do so.

C. Nothing has been stats about the perspective of the cookware company as they might find the magazine unsuitable as there would be commercials for their competitors. Thus, we can say that it is an assumption.  

You might be interested in
Using FIFO for Multiproduct Inventory Transactions (Chapters 6 and 7) [LO 6-3, LO 6-4, LO 7-3] Skip to question [The following i
expeople1 [14]

Answer:

1-a. Dollars of gross profit from selling tags = $9,180

1-b. Dollars of gross profit from selling cases = $1,500

1-c. Gross profit percentage from selling tags = 72.86%

1.d. Gross profit percentage from selling cases = 83.33%

2-a. Tag yields more dollars of profit.

2-b. Tag yields more profit per dollar of sales.

Explanation:

Note: The requirements for this question are two not three as erroneously stated. This is because, the first and the third question are the same. Therefore, the two relevant requirements of the question are:

1. Calculate the dollars of gross profit and the gross profit percentage from selling tags and cases.

2. Which product line yields more dollars of profit? - Which product line yields more profit per dollar of sales?

The explanation of the answers is now given as follows:

1. Calculate the dollars of gross profit and the gross profit percentage from selling tags and cases.

Sales revenue from tags = Sales value of 160 tags mailed to customers on Jan. 8 at a price of $30 per tag + Sales value of 260 tags mailed to customers on Jan. 21 at a price of $30 per tag = (160 * $30) + (260 * $30) = $12,600

Sales revenue from cases = Sales value of 120 cases mailed to customers on Jan. 19 at a price of $15 per case = 120 * $15 = $1,800

Total number of tags sold = 160 tags mailed to customers + 260 tags mailed to customers on Jan. 21 = 420

Total number of cases sold = 120 cases mailed to customers on Jan. 19 at a price of $15 per case = 120

Using FIFO, we have:

Cost of tags sold = Value of 260 tags purchased on Jan.2 from Xioasi Manufacturing (XM) at a cost of $7 per tag + Value of the remaining 160 (i.e. 420 – 260 = 160) tags sold based on the 360 tags purchased on Jan. 11 from XM at a cost of $10 per tag = (260 * $7) + (160 * $10) = $3,420

Cost of cases sold = Value of 60 cases purchased on Jan.4 from Bachittar Products (BP) at a cost of $2 per case + Value of the remaining 60 cases sold based on the 160 cases purchased on Jan. 14 from BP at a cost of $3 per case = (60 * $2) + (60 * $3) = $300

Therefore, we have:

1-a. Dollars of gross profit from selling tags = Sales revenue from tags - Cost of tags sold = $12,600 - $3,420 = $9,180

1-b. Dollars of gross profit from selling cases = Sales revenue from cases - Cost of cases sold = $1,800 - $300 = $1,500

1-c. Gross profit percentage from selling tags = (Dollars of gross profit from selling tags / Sales revenue from tags) * 100 = ($9,180 / $12,600) * 100 = 72.86%

1.d. Gross profit percentage from selling cases = (Dollars of gross profit from selling cases / Sales revenue from cases) * 100 = 83.33%

2. Which product line yields more dollars of profit? - Which product line yields more profit per dollar of sales?

2-a. Which product line yields more dollars of profit?

From part 1 above, we have:

Dollars of gross profit from selling tags = $9,180

Dollars of gross profit from selling cases = $1,500

Since the dollars of gross profit from selling tags of $9,180 is greater than the dollars of gross profit from selling cases of $1,500, this implies that Tag yields more dollars of profit.

2-b. Which product line yields more profit per dollar of sales?

From part 1 above, we have:

Total number of tags sold = 420

Total number of cases sold = 120

Therefore, we have:

Tag's profit per dollar of sales = Dollars of gross profit from selling tags / Total number of tags sold = $9,180 / 420 = $21.86

Case's profit per dollar of sales = Dollars of gross profit from selling cases / Total number of cases sold = $1,500 / 120 = $12.50

Since Tag's profit per dollar of sales of $21.86 is greater than Case's profit per dollar of sales of $12.50, this implies that Tag yields more profit per dollar of sales.

6 0
3 years ago
Pizza Hut lowers the price of its pizza. The price elasticity of demand for Pizza Hut pizza equals 0.3. What happens to the Pizz
Ilia_Sergeevich [38]

Answer:

It decreases. 

Explanation:

If the absolute value of price elasticity of demand is less than one, it means that demand is inelastic.

Demand is inelastic if a change in price has little or no effect on quantity demanded.

If the pizza hut reduces its price, there would be little or no change in quantity demanded. As a result, revenue would fall.

If demand were elastic, a reduction in price would lead to an increase in the quantity of pizza demanded and revenue would increase.

Demand is elastic if a small change in price has a greater effect on the quantity demanded.

I hope my answer helps you

4 0
3 years ago
Read 2 more answers
Suppose Chef City manufactures cast iron skillets. One model is a 10-inch skillet that sells for $28. Chef City projects sales o
cluponka [151]

Answer:

The correct answer is D.

Explanation:

Giving the following information:

Chef City projects sales of 625 10-inch skillets per month. The production costs are $5 per skillet for direct materials, $2 per skillet for direct labor, and $3 per skillet for manufacturing overhead. Chef City has 60 10-inch skillets in inventory at the beginning of July but wants to have an ending inventory equal to 25% of the next month's sales. Selling and administrative expenses for this product line are $1,000 per month. Chef City is budgeted to produce 721 skillets in July with a $10 production cost per skillet.

COGS= units sold* manufacturing cost

COGS= 625*10= 6,250

7 0
3 years ago
A natural barrier that faces Argentina when it sells beef to Siberia is: Group of answer choices custom regulations distance gov
Eduardwww [97]

A natural barrier that faces Argentina when it sells beef to Siberia is distance.

<h3>Why distance is a barrier to trade?</h3>

Due to the fact that markets within countries are typically closer together than markets between countries, distance reduces international trade in comparison to domestic trade. Most overseas markets have higher transportation expenses than they do for domestic markets, frequently by a significant margin. Given that distance seems to restrict trade more than can be compensated for by transportation, it is possible that distance is also linked to greater non-transportation trade costs.

For example, the price of carrying the beef from Argentina to Siberia could make it too expensive even though farming beef there may be less expensive than raising beef in the freezing cold of Siberia. Thus, one of the inherent obstacles to international trading is distance.

Learn more about trade barriers here:

brainly.com/question/27863334

#SPJ4

4 0
2 years ago
Maggie Sharrer Company borrows $88,500 on September 1, 2017, from Sandwich State Bank by signing an $88,500, 12%, one-year note.
xenn [34]

Answer:

interest = $3,540

Explanation:

given data

principal  =  $88,500

rate = 12 %

time = 4 months ( September 1, 2017 to September 1, 2017 )

to find out

What is the accrued interest

solution

we get here interest that is express as

interest = principal × rate × time   .......................1

put here value we get interest

interest = $88500 × 12% × \frac{4}{12}

interest = $88500 × 0.12 × 0.33333

interest = $3,540

4 0
3 years ago
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