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miv72 [106K]
4 years ago
7

America First Electronics Inc. (AFE) is preparing to launch a set of new-to-the-world medical devices that are based on the same

technology. These devices promise to revolutionize the healthcare industry. AFE must ideally attempt to stimulate:_________
A. primary demand for the product category.
B. joint demand for the product category.
C. selective demand for the product category.
D. replacement demand for the product category.
Business
1 answer:
Gnoma [55]4 years ago
5 0

Answer:  Option A  

                                                             

Explanation: In simple words, primary demand refers to the demand of a product that is new to the market. Generation of primary demand refers to attracting the customers to purchase a class of shares rather than for a particular brand.

These products are usually unique in their way and are developed through innovation and technology. Companies advertise these products to make potential costumers understand what are the uses of this product and how can it be helpful.

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At an output level of 58,000 units, you calculate that the degree of operating leverage is 1.6. The output rises to 63,000 units
Scorpion4ik [409]

Answer:

Change in Operating Cash Flow  = 13.79 %

Explanation:

given data

output level = 58,000 units

degree of operating leverage = 1.6

output rises = 63,000 units

solution

we get here percentage change in operating cash flow for that

Percentage Change in Output we get

Percentage Change in Output = ( output rises - output level ) ÷ output level   .........1

Percentage Change in Output  = \frac{63000-58000}{58000}  

Percentage Change in Output   =  0.08620689655  

so here Change in Operating Cash Flow will be as

Change in Operating Cash Flow = Percentage Change in Output × degree of operating leverage ............2

Change in Operating Cash Flow  = 0.08620689655    × 1.6

Change in Operating Cash Flow  = 13.79 %

3 0
4 years ago
Ace, Inc.'s stockholders' equity applicable to common shares is $60,000. The number of common shares outstanding is 1,000 and th
iVinArrow [24]

Answer:

the book value per common share is $60.

Explanation:

Book Value Per Share = Equity Applicable / Number of Shares Outstanding

                                     =  $60,000/ 1,000

                                     = $60

Thus the book value per common share is $60.

8 0
4 years ago
Which of the following statements is true?
Ivan

Answer:

Statement b. is True

Explanation:

When using variable costing method, all the costs which are variable in nature is charged based on per unit basis and is not periodic in nature, as depends o quantum of production and sales.

While considering fixed cost, it is considered periodic in nature as this does not depend on quantum of production or quantum of sales, as this is fixed in terms for a period it is periodic in nature, and is treated unavoidable even at a level where no units are produced.

Thus, Statement b. is True.

7 0
4 years ago
?if a corporation issued $8,000,000 in bonds which pay 5% annual interest, what is the annual net cash cost of this borrowing if
MrRissso [65]
$8,000,000 - corporate issued
5 % -  annual interest
30 % - income tax rate
Annual net cash cost - ?

Formula and Solution - (8,000,000 x 0.05) x 0.7 = 280,000
Answer: The Annual net cash cost - $280,00
4 0
3 years ago
If you want to compare the operations of similar firms without the firm's capital structure or tax status affecting that compari
borishaifa [10]

Answer:

We make use of EBIT (Earnings before Interest and Tax)

Explanation:

Each company has different capital structure (i.e mixture of equity and debt) that gives its weighted average cost of debt. This is depended on the risk profile of the company and macro economic policy prevailing in its jurisdiction.

At the same time, the tax liability of each company differ at different point in time which is depended on the nature of its transactions and the tax laws operating at its jurisdiction.

It is assumed that firm may not have absolute control over all these variables. Hence, in order to ensure that  a fair basis is used in comparing similar firms performance, EBIT is always used as a common ground for comparing performance.

3 0
3 years ago
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