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3 years ago

Is it true or false that once all franchis is paid for all profit goes to the entrepreneur

Business

1 answer:

MA_775_DIABLO [31]3 years ago

7 0

This statement is false.

When an entrepreneur buys into a franchise they will always have franchise fees, even after their intial investment is paid for. The additional fees that they always pay include charges for things like marketing and royalties. These fees are normally based on a percentage of a business’s sales.

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In what sort of pricing strategy does the team apply different price scales based on factors such as opponent, event, time of se

Len [333]

Answer:

variable pricing

Explanation:

A variable pricing strategy refers to selling a same product or service at a different price depending on the sales location, date, or other factors. This type of strategy is used to try to maximize revenue by adjusting price to the different categories of our points of sale or our customers.

In case of sports teams, they will price their seats based on other factors like who is the opponent (current champion v. bad teams), day of the week (weekends v. weekdays) or the time of the season (middle of the season v. near playoffs), etc.

7 0

3 years ago

The following data are from the accounting records of Niles Castings for year 2: Units produced and sold 80,000 Total revenues a

Kruka [31]

Answer:

Gross Margin = $ 115,000 Contribution Margin= $ 144,500

Explanation:

Nile Castings

Income Statement

Year 2

Sales Revenue $ 270,000

Direct Materials $63,000

Direct Labor $ 33,000

Variable Manufacturing Overheads $ 18,000

Fixed Manufacturing Costs $ 41,000

Gross Margin $ 115,000

Less Marketing & Administrative Costs

Fixed Marketing Costs $ 38,000

Variable Marketing Costs $ 11,500

Net Profit $ 65,500

Nile Castings

Income Statement Under Absorption Method

Year 2

Sales Revenue $ 270,000

Direct Materials $63,000

Direct Labor $ 33,000

Variable Manufacturing Overheads $ 18,000

Variable Marketing & Administrative Costs $ 11,500

Contribution Margin $ 144,500

Less Fixed Costs

Fixed Manufacturing Costs $ 41,000

Fixed Marketing Coss $ 38,000

Net Profit $ 65,500

3 0

3 years ago

Silvana Inc. projects the following data for the coming year. If the firm follows the residual dividend policy and also maintain

Goshia [24]

Answer:

The dividend payout ratio is 43.33% as shown below

Explanation:

EBIT is an acronym for earnings before interest and tax, it is given as $2 million.In other words, to arrive at net income we need to deduct interest on loan and tax.

EBIT $2000000

less interest(5000000*10%) ($500000)

Earnings before tax $1500000

Tax @40% ($600000)

Net income $900000

Since capital project requires 60% of equity(net income belongs to equity holders),hence we need to deduct 60% of capital outlay from net income to arrive at distributable earnings.

distributable earnings =$900000-(60%*$850000)

=$390000

Hence dividend payout ratio=distributable earnings/net income

=$390000/$900000

=43.33%

8 0

3 years ago

Please help :( Marking brainliest!!

Dmitry [639]

B, ive taken this before

7 0

2 years ago

Read 2 more answers

A higher earnings per share (eps) does not necessarily translate into a higher stock price

nikdorinn [45]

This doesn't seem to be a question, but rather, a statement.

4 0

4 years ago