Answer: a. $73,810.88
b. $10,185.18
Explanation:
a. The payments of $11,000 are constant so this can be considered an Annuity.
The cost of the Computer is it's present value which is,
Present Value of Annuity = Annuity Payment * Present Value Interest Factor of Annuity, 11%, 10 periods
= 11,000 * 6.71008 (Payment is made at the end of the year so this is an Ordinary Annuity)
= $73,810.88
b. When an Annuity is instead paid at the beginning of the period it is considered to be an Annuity due.
The formula is the same but for the figures ,
Present Value of Annuity Due = Annuity * Present Value Interest Factor of an Annuity Due, 11% , 10 periods
73,810.88 = Annuity * 7.24689
Annuity = 73,810.88/7.24689
= $10,185.18
Answer:
1. $54,000
2. $50,000
3. $50,000
Explanation:
1. The computation of transaction price if the expected value is used is shown below:
= Flat fee + (Cost savings × given percentage)
= $50,000 + ($20,000 × 20%)
= $50,000 + $4,000
= $54,000
2. The computation of transaction price if the estimate of variable consideration is used. So, only a flat fee should be considered and the cost saving is ignored. Hence, the amount is $50,000
3. The computation of transaction price if the estimate of variable consideration is used. So, only a flat fee should be considered and the cost saving is ignored. Hence, the amount is $50,000 as there is very uncertainty due to lack of experience
The correct answer is B. The word "google" has been added to the dictionary.
Explanation:
Branding implies making the name, symbol, and purpose of a company identifiable for the customers. This means, the customers known the purpose of the company, its products, and they can easily remember the name of it, which is important to make a company stood out over similar companies. Additionally, branding often implies customers associate any element of the company with positive ideas.
Branding can be seen in the case of Google company and the fact the name of the company was added to the dictionary because this shows the name of the company and products of it are identified by thousands of consumers, which shows how effective was the branding strategy of the company to define the identity of the company and convey this idea to customers.
Answer: Price and Quality (a. and c.)
Explanation:
Price. This was one of the best choices. The price of the raw materials has a significant impact on the price Umami can charge for its seaweed snacks; therefore, price must be controlled.
Quality. This was one of the best choices. Umami is known for its high-quality snacks, and therefore located a high-quality supplier to manufacture high-quality products.
