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3 years ago

Even the best marketing communication can be wasted if the sender does not first

Business

1 answer:

deff fn [24]3 years ago

6 0

Answer: D) gain the attention of the consumer.

Explanation:

The first and foremost thing is marketing is to gain the attention of the consumer. This is why Adverts usually start with something eye catching and then move on to explain the product.

All other steps in the marketing process including development of brand awareness cannot be implemented if the consumer's attention is not gained.

The first and foremost goal of marketing in simple terms therefore is to first grab their curiosity then gain their attention.

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Jim is in the market for a car that will last for the next 10 years and has saved up some money for the purpose of a car. what’s

nordsb [41]

Answer:

Utilizing his saving as a down payment and buying the car using an auto loan.

Explanation:

5 0

3 years ago

Erin Shelton, Inc., wants to earn a target profit of $960,000 this year. The company’s fixed costs are expected to be $1,320,000

kipiarov [429]

Answer:

1. Break-even sales = $2,200,000

2. Net Income = $0

3. Sales = $3,800,000

4. See explanation section

5. Margin of safety = $1,600,000

Margin of safety (%) = 42.11%

Explanation:

Requirement 1.

We know,

Break-even sales = Fixed expense ÷ Contribution Margin Ratio

Given,

Expected Fixed expense = $1,320,000

Contribution Margin Ratio = Contribution Margin ÷ Sales Revenue

As we do not have contribution margin and Sales Revenue, we have to use variable costs that is expected to be 40% of sales. Therefore,

Contribution Margin Ratio = Sales (%) - variable costs (%) = 100% - 40% = 60%

Therefore, Break-even sales = $1,320,000 ÷ 60%

Break-even sales = $1,320,000 ÷ 60%

Therefore, Break-even sales = $2,200,000

Requirement 2.

Erin Shelton, Inc.

Contribution Margin Income Statement format

For the year ended, December 31, Current year

Sales Revenue $2,200,000 (Requirement 1)

Less: Variable expense (40% of sales) 880,000

Contribution Margin $1,320,000

Less: Fixed Expense 1,320,000

Net operating Income 0

In break-even sales, total fixed expense = total contribution margin, therefore, no income or loss.

Requirement 3.

We know,

This year, To attain profit, sales = (Fixed expense + Target Profit) ÷ Contribution Margin Ratio

Given,

Expected Fixed expense = $1,320,000

Target Profit = $960,000

Contribution Margin Ratio = Contribution Margin ÷ Sales Revenue

As we do not have contribution margin and Sales Revenue, we have to use variable costs that is expected to be 40% of sales. Therefore,

Contribution Margin Ratio = Sales (%) - variable costs (%) = 100% - 40% = 60%

Therefore, To attain profit, sales = ($1,320,000 + $960,000) ÷ 60%

To attain profit, sales = $2,280,000 ÷ 60%

Therefore, To attain profit, sales = $3,800,000

Requirement 4.

Using To attain profit, sales = $3,800,000 (From Requirement 3) to find the net operating income

Erin Shelton, Inc.

Contribution Margin Income Statement format

For the year ended, December 31, Current year

Sales Revenue $3,800,000 (Requirement 3)

Less: Variable expense (40% of sales) 1520,000

Contribution Margin $2,280,000

Less: Fixed Expense 1,320,000

Net operating Income $960,000

Requirement 5.

We know,

Margin of safety = (Current sales - Break-even sales)

From Requirement 1, we get, Break-even sales = $2,200,000

From Requirement 3, we get, Current sales = $3,800,000

Margin of safety = $3,800,000 - $2,200,000

Therefore, Margin of safety = $1,600,000

Margin of safety as percentage = [(Current sales - Break-even sales) ÷ Current sales] × 100

Margin of safety = ($1,600,000 ÷ $3,800,000) × 100

or, Margin of safety = 0.42105 × 100

Margin of safety = 42.11%

8 0

3 years ago

Vernon is a cash basis taxpayer with a calendar tax year. on october 1, 2016, vernon entered into a lease to rent a building for

tester [92]

Answer:

$9,000

Explanation:

Vernon can only deduct the actual lease expenses incurred during 2016, and that is only three months: October, November and December.

= 3 months x $3,000 per month = $9,000

This logic applies to every expense that is paid in advance, you can only deduct payments that apply for the current tax year.

8 0

3 years ago

On January 1, 2018, Jordan Company acquired a machine for $1,090,000. The estimated useful life of the asset is five years. Re

anyanavicka [17]

Answer:

$206000.

Explanation:

Given: Asset purchase value = $\$ 1090000$

Residual value after five years= $\$ 60000$

Estimated useful life of asset= five years.

Now, we will calculate depreciation per year using straight line method.

Depreciation= $\frac{(purchased\ value\ of\ asset - residual\ value)}{estimated\ useful\ life\ of\ asset}$

⇒ Depreciation = $\frac{(1090000 - 60000)}{5} = \frac{1030000}{5}$

∴ Depreciation expense per year = $\$ 20600$

3 0

3 years ago

The following is the ending balances of accounts at December 31, 2016, for the Weismuller Publishing Company.

Inessa05 [86]

Answer:

<h2>Weismuller Publishing Company</h2>

Balance Sheet

As of December 31, 2016

Assets:

Current Assets:

Cash $65,000

Accounts receivable 160,000

less Allowance 16,000 144,000

Inventories 285,000

Prepaid expenses 148,000

Investments 140,000 $782,000

Long-term Assets:

Machinery and equipment 320,000

Accumulated

depreciation equipment 110,000 $210,000

Total Assets $992,000

Current Liabilities:

Accounts payable 60,000

Interest payable 20,000

Deferred revenue 80,000

Taxes payable 30,000

Notes payable 60,000

Total current liabilities $250,000

Long-term liabilities:

Notes payable 140,000

Equity:

Common stock

Authorized, 800,000 shares at no par

Issued & outstanding, 400,000 shares 400,000

Retained earnings 202,000

Total Equity $602,000

Total Liabilities + Equity $992,000

Explanation:

a) Data and Calculations:

Weismuller Publishing Company

Unadjusted Trial Balance as of December 31, 2016:

Account Title Debits Credits

Cash $65,000

Accounts receivable 160,000

Inventories 285,000

Prepaid expenses 148,000

Machinery and equipment 320,000

Accumulated depreciation equipment $110,000

Investments 140,000

Accounts payable 60,000

Interest payable 20,000

Deferred revenue 80,000

Taxes payable 30,000

Notes payable 200,000

Allowance for uncollectible accounts 16,000

Common stock 400,000

Retained earnings 202,000

Totals $1,118,000 $1,118,000

b) Notes Payable:

Current $60,000 ($40,000 + $20,000)

Long-term $140,000 ($200,000 - $60,000)

3 0

3 years ago