Answer:
$62,800
Explanation:
Following Garfield Corp's policy, the number of pet beds that must be purchased, assuming no initial inventory, is given by the expected number of sales in March (1,300 units) added to 30% of the expected sales in April (30% of 900 units):
Since the company purchases each pet bed for $40, total budgeted purchases are:
Garfield Corp's total budgeted purchases for March are $62,800.
Answer:
The answer is: A) Forward vertical integration (FVI)
Explanation:
FVI takes place when a company expands its business activities to take direct control of the distribution of their products.
The question is a textbook example of FVI. A company decides to sell their products directly to their customers bypassing the middlemen.
Internet sales are giving several companies this opportunity. For instance, every once in a while I get promotions directly from the Coca Cola Company offering me direct discounts on their products. Of course some type of courier or logistics company is needed, but the sale is made directly from the distributor bypassing the grocery store. A more common example is people buying their cars directly in the manufacturers website. In Germany, car vending machines are located right next to the factories. You buy online and you pick your car like a soda can, only on a huge scale.
To answer this item, we assume that the interest rate is simple, such that the yearly rate was only divided by 12 months in order to determine the rate per month. Hence, to answer this item, we simply have to multiply the given percent by 12.
rate of interest/year = (12)(0.85%) = 10.2%
Therefore, the answer is 10.2%.
