Answer:
a). I would adopt the increase in market share in the suburbs by 15 % since the number of final suburbs dwellers who will use my product is (0.0805 x) which is greater than final city dwellers' (0.075 x)
b). The total percentage of people who are city dwellers who own your product before the new sales drive=46.15%
Explanation:
a). We can make the following expressions;
Total number of both city dwellers and suburb dwellers=x
City dwellers=30% of x=(30/100)×x=0.3 x
Suburb dweller=70% of x=(70/100)×x=0.7 x
Total number of city dwellers who use your product initially=(20/100)×0.3 x=0.06 x
Total number of suburb dwellers who use your product initially=(10/100)×0.7 x=0.07 x
If we increase the market share in the suburbs by 15%
Number of suburb dwellers=0.07 x+(15/100)×0.07 x
Number of suburb dwellers=(0.07 x+0.0105 x)=0.0805 x
If we increase market share in the city by 25%
Number of city dwellers=0.06 x+(25/100)×0.06 x
Number of city dwellers=(0.06 x+0.015 x)=0.075 x
I would adopt the increase in market share in the suburbs by 15 % since the number of final suburbs dwellers who will use my product is (0.0805 x) which is greater than final city dwellers' (0.075 x)
b). Percentage of city dwellers that own your product
Percentage=(Initial number of city dwellers/Total number of people)×100
Percentage=0.06 x/(0.06 x+0.07 x)=(0.06 x/0.13 x)×100=46.15%
The total percentage of people who are city dwellers who own your product before the new sales drive=46.15%
Answer:
Downward communication
Explanation:
It flows from higher level in organizations to the lower ones
<span>1. journalize the entry to record the amount of cash proceeds from the issuance of the bonds on july 1, 2016.
Cash 42,309,236
Discount on bonds payable 3,690,764
Bonds payable 46,000,000
</span><span>2. journalize the entries to record the following:
a. the first semiannual interest payment on december 31, 2016, and the amortization of the bond discount, using the straight-line method. (round to the nearest dollar.
Interest Expense 2,327,007.98
Discount on Bonds Payable 92,269.10
Cash 2,234,738.88
b. the interest payment on june 30, 2017, and the amortization of the bond discount, using the straight-line method. (round to the nearest dollar.
</span>nterest Expense 2,327,007.98
Discount on Bonds Payable 92,269.10
<span> Cash 2,234,738.88
</span><span>
3. </span><span>determine the total interest expense for 2016.
</span>42,309,236 x 11% = 4,654,015.96 annual interest expense
4,654,015.96 x 6/12 = 2,327,007.98 semi annual expense
Answer:
High consumption/low saving v low consumption/high saving.
Demand greater than supply leading to inflation.
Geographical unemployment.
Large current account deficit/surplus.
Explanation:
Answer:
What are the tax consequences of this loan to Joshua and to Seth?
The IRS requires that any loans must charge a minimum interest rate, and in this case, since Joshua is not charging any interest to his son, the IRS will consider the minimum interest rate as a gift and will tax it that way. Since Joshua can make gifts for $15,000 per year, if the threshold is already passed, the IRS will consider $100,000 x 4% = $4,000 as taxable gifts.
How would your answer change if Seth uses the money to invest in corporate bonds paying 8 percent annual interest?
The answer shouldn't change since Joshua is the one that can be taxed here. Seth cannot deduct any interest expense or gift tax expense either.
