A sophisticated sales test might involve manipulating an advertising variable like schedule or copy through cable systems, and observing the affects on purchasing at local supermarkets.
What is advertising variable?
- Although advertising expenditures can change greatly, they are not regarded as variable costs.
- Instead, marketing costs are fixed, meaning they don't change based on how many goods or services you offer to customers.
Why is marketing considered a variable cost?
- Businesses may set aside a specific amount for advertising within their fixed marketing budget, despite having a fixed budget for marketing.
- Advertising is therefore a current expense rather than a fixed one. Therefore, whether it be print or online, businesses must spend money on advertising.
Learn more about advertising a variable cost
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Answer:
The cost of equity for Neal Enterprises is 5%
Explanation:
In order to calculate the cost of equity for Neal Enterprises we would have to make the following calculation:
cost of equity=((Do(1+g)/Po)+g
According to givn data we have the following:
Do=$1.20
Po=$36.80
g=2%
cost of equity=((1.20(1+0.02)/36.80-1.20)+0.02
cost of equity=((1.20(1+0.02)/35.60)+0.02
cost of equity=0.05
The cost of equity for Neal Enterprises is 5%
Answer:
18.60%
Explanation:
Total labor force = $8 million + $35 million = $43 million
Unemployment Rate = (Unemployed/Labor force)*100
Unemployment Rate = $8 million/$43 million * 100
Unemployment Rate = 0.1860465 * 100
Unemployment Rate = 18.60%
Answer:
Annual Interest = $80
Interest rate = 8.89%
Explanation:
The investor pays discounted price for this bond.
We know, Annual Interest = Coupon payment/Market value
Given,
Coupon payment = Principal value*Coupon rate
Coupon payment = $1,000*8% = $80
Market value = Price pays for the bond = $900
Therefore, the annual interest rate = $80/$900
Annual Interest rate = 8.89%
Note that, coupon payment is the annual interest rate.
