To carry out this process of division of the <span>company's vast customer base into distinct segments so that the company's sales people can specialize in one line of business only</span>, it is necessary for Milton to possess sound market knowledge. Sound market knowledge involves knowledge, data and information about the product and about the customers. With this type of market knowledge Milton will be able to meet external users wants and needs and to present them the product on a suitable way. <span />
Answer:
COGS= $81,770
Explanation:
Giving the following information:
Beginning inventory= 477 units that cost $65 each.
Purchases:
715 units at $68 each
364 units at $70 each.
Units sold= 1,197
<u>To calculate the cost of goods sold under the LIFO (last-in, first-out) method, we need to use the cost of the lasts units incorporated into inventory:</u>
COGS= 364*70 + 715*68 + 118*65
COGS= $81,770
Answer:
NPV = $13.9m
NPV = $11.05m (if conducts customer segment research)
Explanation:
DATA
Successfull probability = 60%
Unsuccessful probability = 40%
Initial selling = $19.1m
Unsuccessful present value = $6.1 m
Research cost = $1.14m
Discount rate = 14%
Solution ( NPV If the firm goes to market immediately)
NPV = (Successful probability x initial selling) + (Unsuccessful probability x Unsuccessful present value)
NPV = (60% x $19.1m) + ( 40% x $6.1 m)
NPV = $11.46m + $2.44m
NPV = $13.9m
Solution (NPV if the firm conducts customer segment research)
NPV = ((Successful probability x initial selling) + (Unsuccessful probability x Unsuccessful present value)/1+discount rate ) - research cost
NPV = 
NPV = $12.19m - $1.14m
NPV = $11.05m
Note: We can calculate NPV if the firm conducts customer segment research by dividing NPV calculated above by (1+discount rate) and research cost is deducted from the whole.