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goblinko [34]
2 years ago
8

Ralph, a regional sales manager, was asked to analyze whether his company should launch a marketing effort to become Right Foods

' produce supplier this year. He found that Fresh Green Veggies currently has a supply contract with Right Foods that has three more years in its term; RightFoods would have to pay Fresh Green $0.5 million to break the contract. Also, Fresh Green has installed automated ordering/billing software in RightFoods' home office; RightFoods would have to spend $100,000 to replace it and retrain its staff. He concluded that RightFoods' _______ costs would be too high to seriously consider a change in supplier, thereby recommending that a marketing effort not be launched this year.
Business
1 answer:
podryga [215]2 years ago
4 0

Answer:

Switching cost

Explanation:

Switching cost is defined as the cost that is incurred in the course of changing from one supplier to another.Switching cost can be in monetary terms like compensation and termination fees and also in non monetary terms like time , effort and psychological stress.

In the given scenario , the defined activities of Right foods and the intention of Ralph clearly point out the process of potential switch of suppliers , even as the potential switching cost of $0.5 million for termination and $100,000 for replacing of software and retraining of staff are apparent.

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Which is an advantage to having an account at a consumer bank instead of a credit union
arlik [135]

Answer:

Credit unions

Explanation:

offer higher savings rates and lower interest rates on loans

8 0
3 years ago
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Which option is an example of a debt-funding source
Furkat [3]

Answer:

The option which is an example of a debt funding source can be banks, credit unions, or any external lender.

Explanation:

  • Debt funding is when a company raises money by marketing bonds, bills and notes, etc. to the investors
  • It differs from equity financing which is selling shares of the company.
  • Debt funding must be paid back at an previously agreed date.
  • If the business goes under, then the lenders have more rights on the property that will be liquidated than the share holders.
7 0
2 years ago
All of the following statements regarding leases are true except : A. For a capital lease the lessee records the leased item as
faust18 [17]

Answer: B. Capital leases do not transfer ownership of the asset under the lease, but operating leases often do.

Explanation:

When using Capital Leases, the lessee will record the lease as if it were their own asset and as a result will also depreciate it. The lessee will also create a long term liability on their balance sheet for the asset.

Capital leases usually also involve a transfer of ownership to the lessee at the end of the lease term. Operating Leases on the other hand do not have these features. They are more like a rental of an asset and as such are recorded as a rental expense in the books of the lessee. The ownership remains with the lessor in an Operating Lease and the asset will be returned once the lease period is over.

5 0
3 years ago
A Bathtub model of the start of the Great Depression would show the water level becoming lower with Investment inflow being less
Aneli [31]

Answer:

LESSER THAN

Explanation:

During the Great Depression, it was a period of recession that meant that investments were low and less than savings which meant that 'household' was unwilling to invest its money as it had lost confidence in the American economy. This will lead to Aggregate Demand being Lesser than Aggregate Supply as consumption fell drastically during the great depression

4 0
3 years ago
At the end of the current year, Accounts Receivable has a balance of $590,000; Allowance for Doubtful Accounts has a debit balan
denpristay [2]

Answer and Explanation:

a. The computation of uncollectible accounts and Journal entry is shown below:-

Bad Debt expenses Dr, $6,650

($2,660,000 × 1 ÷ 4× 1%)

       To Allowance for doubtful accounts $6,650

(Being uncollectible accounts is recorded)

b. The computation of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense is shown below:-

Accounts receivable = $590,000

Allowance for Doubtful Accounts = (Sales of the year × 1 ÷ 4 × 1%) - Credit balance

= ($2,660,000 × 1 ÷ 4 × 1%) - $5,500

= $6,650 - $5,500

= $1,150

Bad debt expenses = Sales of the year × 1 ÷ 4 × 1%

= $2,660,000 × 1 ÷ 4 × 1%

= $6,650

c. The computation of net realizable value of accounts receivable is shown below:-

Net realizable value = Accounts receivable - Allowance for Doubtful Accounts

= $590,000 - $1,150

= $588,850

6 0
3 years ago
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