Answer:
Normally, the areas that business people have issues with in staffing another endeavor are item acknowledgment, the board ability, meeting capital prerequisites, information available, and working and basic controls. In diversifying, the dangers related with each are limited through the establishment relationship and aides the franchisee develop.
Answer:savings
Explanation:saves the rest of the money where she can reuse it
Please see complete question below :
CPA-08299: Managers of the Doggie Food Co. want to add a bonus component to their compensation plan. They are trying to decide between return on investment (ROI) and residual income (RI) as the performance measure they will use. If Doggie adopts the RI performance measure, the relevant required rate of return would be 18%. One segment of Doggie is the Good Treats division, where the manager has invested in new equipment. The operating results from this equipment are as follows:
Revenues $ 80,000
Cost of goods sold 45,000
General and administrative expenses 15,000
Assuming that there are no income taxes, what would be the ROI and RI for this equipment that has an average value of $100,000?
ROI RI
Answer:
ROI = 20% and RI = $2000
Explanation:
Return On Investment(ROI) = Profit before Interest & Tax/Average Investment
Profit before Interest & Tax (PBIT) = Revenue -cost of goods sold- General & Adm expenses
PBIT= $ 80,000
- $45,000
-$15,000
= $20,000
ROI = ($20,000/100,000) * 100% = 20%
Residual Income = PBIT - (Average Investment* Required Rate of Return)
=$20,000- (18%* 100,000)
=$20,000- $18,000
= $2000
Answer: Income elasticity of demand refers to the sensitivity of the quantity demanded for a certain good to a change in real income of consumers who buy this good, keeping all other things constant.
Aquata Income elasticity of demand for dingle hoppers will be higher.
Explanation: Types of Income Elasticity of Demand
High: A rise in income comes with bigger increases in the quantity demanded.
Unitary: The rise in income is proportionate to the increase in the quantity demanded.
Low: A jump in income is less than proportionate than the increase in the quantity demanded.
Zero: The quantity bought/demanded is the same even if income changes
Negative: An increase in income comes with a decrease in the quantity demanded.
Problem recognition stage.
This is when the consumer makes a conscious realization that they have a problem which can (hopefully) be solved by purchasing a product or service in the marketplace.