Answer:
D: Equity financing
Explanation:
Equity is ownership in the business - equity financing means giving up ownership in order to secure financing.
Answer:
Budgeted cost of goods sold = $7,650,000
Explanation:
Computation table for budgeted cost of goods sold
<u>Particular Amount </u>
Total Sales 225,000
Add: Desired stock in hand 90,000
<u>Less:</u><u> Beginning stock 60,000 </u>
<u>Budgeted production 255,000
</u>
Budgeted cost of goods sold = 255,000 x $30
Budgeted cost of goods sold = $7,650,000
Answer:
C. $1000
Explanation:
Given that;
20% of customers leave company every year
Jessica decide to acquire customers whose CLV equals or exceeds $5000
If Karly is expected to bring $2000 annual margin
assuming that the company's discount rate is 20% /year =0.2/ year
The objective is to determine the amount the company will spend to acquire her (i,e Karly) as a new customer.
The amount the company will spend to acquire her as a new customer is :
= amount of CLV × discount rate
= $5000 × 0.2
= $1000
Thus, the company should not spend more than <u> $1000 </u> to acquire her as a new customer