A 5 customer retention increase can result in a profit increase of how much?

Joan sells new cars at a local dealership. she receives a 25% commission on the profit each car is sold for. last month she sold

Usimov [2.4K]

Okay. So Joan receives 25% commission on the profits of the cars she sells. She got $8,870 on the profit last month. To find the commission, let’s multiply the amount of profit by the percentage. 8,870 * 0.25 is 2,217.5. There. Joan earned $2,217.50 in commission last month.

6 0

4 years ago

The Bensington Glass Company entered into a loan agreement with the firm's bank to finance the firm's working capital. The loa

klio [65]

<h2>Question:</h2>

As the data in incomplete, lets consider the data found on the net for the same question

DATE LIBOR

week 1 1.98%

week 2 1.64%

week 3 1.54%

week 4 1.31%

week 5 1.57%

week 6 1.69%

week 7 1.66%

week 8 1.94%

week 9 1.92%

(This data in not given in the question. If some values differ from this data, just change the that value in the method below and you'll get your answer)

<h2></h2><h2>Answer:</h2>

Floating rate = 0.25%

Maximum rate = 2.24%

Minimum rate = 1.71%

General formula for for finding rate of interest of a week

Week Rate = Previous Week's Rate (LIBOR from table) + Floating Rate

Lets find the values:

Week 2 rate = Week 1 rate + 0.25% = 1.98% + 0.25% = 2.23%

Week 3 rate = Week 2 rate + 0.25% = 1.64% + 0.25% = 1.89%

Week 4 rate = Week 3 rate + 0.25% = 1.54% + 0.25% = 1.79%

Week 5 rate = Week 4 rate + 0.25% = 1.31% + 0.25% = 1.56%

Week 5 rate is lower than the minimum rate, rate of Week 5 can be taken as minimum rate

Week 5 rate = 1.71%

Week 6 rate = Week 5 rate + 0.25% = 1.57% + 0.25% = 1.82%

Week 7 rate = Week 6 rate + 0.25% = 1.69% + 0.25% = 1.94%

Week 8 rate = Week 7 rate + 0.25% = 1.66% + 0.25% = 1.91%

Week 9 rate = Week 8 rate + 0.25% = 1.94% + 0.25% = 2.19%

Week 10 rate = Week 9 rate + 0.25% = 1.92% + 0.25% = 2.17%

8 0

3 years ago

A brick fence straddles the property line of two neighbors. The neighbors agree not to damage it in any way. This is an example

Vadim26 [7]

Answer:

A party wall

Explanation:

A party wall

A Party wall which sometimes also called a parting wall is referred to that wall which is used or shared by both property owners. The purpose of this wall is to separate the two adjoining owners, therefore, thickness varies from 9 to 12 inches. Party wall agreement need to signed between both sharing owners to make any repair work on the party wall.

4 0

4 years ago

Miltmar Corporation will pay a year-end dividend of $5, and dividends thereafter are expected to grow at the constant rate of 4%

morpeh [17]

Answer:

a. 10.04%

b. $82.78

Explanation:

In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below

a. Expected rate of return or market capitalization = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

= 5% + 0.72 × (12% - 5%)

= 5% + 0.72 × 7%

= 5% + 5.04%

= 10.04%

The Market rate of return - Risk-free rate of return) is also known as the market risk premium and the same is applied.

b. Now the intrinsic value would be

= Expected dividend ÷ (Required rate of return - growth rate)

= $5 ÷ (10.04% - 4%)

= $5 ÷ 6.04%

= $82.78

7 0

3 years ago

"when the number of units produced exceeds the number of units sold, net income under absorption costing will be:"

r-ruslan [8.4K]

Answer:

The answer is that the net income under absorption costing would be higher than the net income under variable costing.

Explanation:

Absorption costing and variable costing are terms used in accounting contexts. Absorption costing, also known as full costing, incurs overhead costs when the product is sold; not before it. Variable costing, also referred to as direct costing, would include overhead costs during the period the costs occurred. In this condition, net income would be higher using absorption since overhead costs would not be included until the product is sold.

5 0

3 years ago