Answer:
Time value of money
Explanation:
The reason is that the money invested today worth more tomorrow. If we have option to pay our supplier $5m after a year is more suitable option than paying him today. The reason is that the amount paid today will be worth $5m but if we pay our supplier after a year then in real terms we have paid the supplier less because money lost its worth by certain percentage during the year. So paying late makes the liability cheaper required their are no interest or other costs.
Answer:
the answer is given below;
Explanation:
Allowance for Doubtful Accounts-opening ($5,355)
Allowance for doubtful accounts-closing ($300,000*8%) $24,000
Bad Debt Expense $18,645
Bad Debt Expense Dr.$18,645
Allowance for Doubtful Accounts Cr.$18,645
Answer:
d. less frequent price changes and decreased variability of relative prices.
Explanation:
We know that the Inflation is an increase in prices for a period of time that represent the loss in the purchasing power of the consumer. With attached to it, there would be rise in the level of the price that have the high amount of fluctuations in the price
So in the case when there is a decrease in inflation so it would have less frequent change in price and reduction in variability in relative prices as the prices would become stable
Hence, the option d is correct
With sales of 9,000 units, contribution margin per unit of $32 and fixed costs total of $120,000, Lance's profit is $168,000.
<h3><u>
What is contribution margin?</u></h3>
- A gross or per-unit basis might be used to express the contribution margin.
- It indicates the additional revenue made for each product or unit sold after the variable element of the business's costs have been subtracted.
- The selling price per unit less the variable cost per unit is the contribution margin.
- The metric, also known as dollar contribution per unit, shows how a specific product affects the company's overall earnings.
Contribution margin offers a means of demonstrating the potential for profit of a specific product being offered by a business and displays the percentage of sales that goes toward paying the business' fixed costs. Profit is the amount that remains after fixed expenses have been paid.
Number of units sold = 9,000.
Contribution margin per unit = $32.
Expenses = $32 × 9000 = $2,88,000.
Profit = $2,88,000 - $120,000 = $1,68,000.
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Answer:
an engraving service for pen owners who may wish to will their pens to loved one.
Bic is a large publicly traded company with significant financial resources.
Explanation:
Mont Blanc uses differentiation strategy to address to consumer social and emotional needs. The best strategy will be to provide pen with name or a special message engraved in the pen according to the consumer needs. This will focus on consumer social needs and pen owners will love to will their pens to their loved ones.
Bic is large publicly traded company which has significant financial resources available to it. Bic will not wish to compete with Mont Blanc as it will require financial resources to capture its target market. Bic pens are cheaper and consumers are attracted to it because of its low price and ease in availability.
