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3 years ago

Indirect channels for consumer goods

Business

1 answer:

Komok [63]3 years ago

8 0

Answer:

The most indirect channel you can use (Producer/manufacturer –> agent –> wholesaler –> retailer –> consumer) is used when there are many small manufacturers and many small retailers and an agent is used to help coordinate a large supply of the product.

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Nofly corporation sells three different models of a mosquito "zapper." model a12 sells for $50 and has variable costs of $35. mo

Vsevolod [243]

The first step you need to do to solve this problem is to calculate the contribution margin per unit for each model:

Model a12 b22 c124

Sales Price per unit 50 100 400

Less: Variable Cost per unit 35 70 300

Contribution Margin per unit 15 30 100

The next step is to calculate the weighted-average contribution margin per unit for the sales mix using the following formula:

Model a12 CM per Unit × Model a12 Sales Mix Percentage
+ Model b22 CM per Unit × Model b22 Sales Mix Percentage
+ Model c124 CM per Unit × Model c124 Sales Mix Percentage
= Weighted Average Unit Contribution Margin (WACM)

Contribution Margin per unit 15 30 100

X Sales Mix Percentage 60% 15% 25%

WACM 9 4.5 25

Weighted Average Unit Contribution Margin (sum) 38.5

The next step is to find the break-even point using the WACM.

Total Fixed Cost $269,500 ÷ Weighted Average CM per Unit $38.50 Break-even Point in Units of Sales Mix 7,000

The next step is to calculate the number of units of each model at break-even point

Model a12 b22 c124 Sales Mix Ratio 60% 15% 25% × Total Break-even Units 7,000 7,000 7,000 Product Units at Break-even Point 4,200 1,050 1,750

7 0

3 years ago

Shen is concerned that a decline in interest rates might lead to annual income from his investments. If interest rates _________

Crank

Answer:

Decline

Increase

Bond with low interest rate.

Explanation:

A decline in interest rates might lead to a decline of annual income

and if interest rates increase the value of earnings from his investments will Increase

Given that his goal is to save for retirement and not to sell off, The bonds that poses the biggest risk is the bond with a low interest rate

8 0

3 years ago

Denny Corporation is considering replacing a technologically obsolete machine with a new state-of-the-art numerically controlled

aev [14]

Answer:

The simple rate of return of 4.54%

Explanation:

The simple rate of return of 8.75%

($97,000 - $56,000 - $27,500) ÷$297,000

=$13,500÷$297,000

=0.0454×100

=4.54%

The new machine $330,000 ÷ 12 years useful life

=$27,500

The new machine $330,000

Les old machine scrap $33,000

=$297,000

Therefore the simple rate of return is 4.54%

7 0

3 years ago

Journal entry for purchased goods from ABC Co. for Rs. 11,000.

vladimir1956 [14]

Answer:

purchase A/c. Dr. Rs.11,000

To ABC CO.A/c. Rs.11,000

(being goods purchased in cash)

3 0

2 years ago

On May 10, Sheffield Corp. issues 2,500 shares of $5 par value common stock for cash at $12 per share.

Murljashka [212]

Answer:

Explanation:

The journal entry to record the issuance of common stock is shown below:

Cash A/c Dr $30,000 (2,500 shares × $12)

To Common Stock $12,500 (2,500 shares × $5)

To Additional Paid-in Capital in excess of par - Common Stock $17,500

(Being the issuance of stock is recorded and the remaining balance is credited to the additional paid-in capital account)

While issuing the stock, we debited the cash account and credited the common stock and additional paid-in capital account

3 0

4 years ago