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3 years ago

explain why it is important for marketers to be able to measure the effectiveness of marketing activities.

1 answer:

5 0

Marketing effectiveness is measured by how well a company's marketing strategies increase its revenue while decreasing its costs of customer acquisition.

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The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ende

Paladinen [302]

Answer:

Results are below.

Explanation:

First, we need to calculate the cost of goods sold:

COGS= beginning finished inventory + cost of goods purchased - ending finished inventory

COGS= 30,000 + 100,000 - 40,000

COGS= 90,000

Now, the number of skis sold:

Units sold= 150,000/750= 200 units

Traditional income statement:

Sales= 150,000

COGS= (90,000)

Gross profit= 60,000

Total selling expense= (50*200 + 20,000)= (30,000)

Total administrative expense= (10*200 + 20,000)= (22,000)

Net operating income= 8,000

Contribution format income statement:

Sales= 150,000

Total variable cost= (90,000 + 50*200 + 10*200)= (102,000)

Contribution margin= 48,000

Total fixed selling expense= (20,000)

Total fixed administrative expense= (20,000)

Net operating income= 8,000

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3 years ago

A company purchases equipment for $32,000 cash. This transaction should be shown on the statement of cash flows under:________

omeli [17]

Answer:

b. investing activities

Explanation:

Cash flow can be defined as the net amount of cash and cash-equivalents that is flowing into (received) and out (given) of a business. There are three components of the cash flow;

1. Operating cash flow: all cash generated from the business activities of an organization.

2. Financing cash flow: all payments made by an organization and profits from issuance of debts and equity.

3. Investing cash flow: costs associated with purchasing of capital assets and investments of cash resources in other businesses.

A company purchases equipment for $32,000 cash. This transaction should be shown on the statement of cash flows under investing activities.

Generally, investing activities comprises of purchasing physical assets, investing in securities and the sale of assets or securities associated with the company.

Hence, a company that purchases equipment for $32,000 cash should show the transaction on the statement of cash flows under investing activities.

4 0

3 years ago

Invoro is a market leader in consumer electronics. If Finolo and Ethver, companies that manufacture televisions, develop the sam

Yanka [14]

Answer:

Invoro will have a resource that is valuable but no longer rare.

Explanation:

Invoro's competitive edge has been duplicated by Finolo and Ethics through their customer knowledge base and products that appeal to customers.

The resource that Invoro has is still valuable and can give the company a good market share, but it is no more rare.

5 0

3 years ago

On January 15, the end of the first pay period of the year, North Company’s employees earned $26,000 of sales salaries. Withhold

Contact [7]

Answer: Please see the explanation column

Explanation:

Journal entry to record North Company’s salaries expense and related liabilities.

Date Particulars Debit Credit

Jan, 15 Sales salaries expense $26,000

To FICA Social Security taxes

payable at 6.2% $1,612

To FICA Medicare taxes

payable at 1.45% $377

To federal income taxes payable $2,000

To employee medical insurance payable $429

To employee union dues payable $180

Sales Salaries Payable $21.402

Working :

FICA Social Security taxes = 6.2% x $26,000 = $1,612

FICA Medicare taxes = 1.45% x 26,000 = $377

Salary payable =Sales salaries expense -(FICA Social Security taxes payable + FICA Medicare taxes payable + federal income taxes payable+medical insurance payable +employee union dues payable ) = 26,000 - (1612+377+2000+429+180)=$21,402.

6 0

3 years ago

A company uses the percent of sales method to determine its bad debts expense. At the end of the current year, the company's una

ValentinkaMS [17]

Answer: $5,440

Explanation:

When using the percent of sales method to determine bad debts, the company estimates a percentage that it believes will results in uncollectible debt and then applies it to the sales/revenue figure. The figure that is calculated is then debited along with the debit balance on the Allowance for doubtful accounts to the Bad debts account for the year and credited to the Allowance for doubtful accounts.

This company estimates that they will have 0.6% of credit sales uncollectible.

There are also $790,000 in sales of which all are on credit.

The Uncollectible estimate is therefore,

= 790,000 * 0.6%

= $4,740

This figure is then added to the debit amount on the Allowance for Uncollectible Accounts.

= 4,470 + 700

= $5,440

Note; A debit balance on the Allowance for doubtful debt account signifies that the bad debts were higher than anticipated the last time. This is why the figure is added to the current bad debts expense.

6 0

3 years ago