Answer:
A=P(1+r/100)^n
where
A=future value
P=present value
r=rate of interest
n=time period.
a.
16843.93=12800*(1+r/100)^7
(16843.93/12800)^(1/7)=(1+r/100)
(1+r/100)=1.04
r=1.04-1
=4%
b.
50618.88=45,000*(1.04)^n
(50618.88/45,000)=(1.04)^n
Taking log on both sides;
log (50618.88/45,000)=n*log 1.04
n=log (50618.88/45,000)/log 1.04
=3 years
c.
1.A=$50*(1.05)^5
=$63.81(Approx).
A=$25*(1.1)^5
=$40.26(Approx).
2.
A=$25*(1.1)^5
=$40.26(Approx).
A=$50*(1.05)^5
=$63.81(Approx).
Hence Case 1 is correct.
Explanation:
Answer:
Fashion industry is very dynamic. The reason for low sales is due to change is customer preference for certain type of clothing.
Explanation:
As a brand manager, we need to understand markets trends and then analyse sales. The main reason for constant low sales is mainly due to change in fashion sense of customer. There can be some seasonal effect which cause decline in sales. Normally gents wear t.shirts and formal shirts because they are office going people. They will require formal suiting which will make them feel gentlemen and decent clothing. They will require consistent quality products and if there is any issue with the cloth stuff, they will move to another brand.
Answer:
D. $263,400
Explanation:
Calculation for the What sales revenue is needed for Peggy to break even
First step is to calculate the contribution ratio
Contribution ratio=(30,310 + 92,190)/350,000
Contribution ratio= 35%
Second Step will be to calculate the Sales Revenue
Sales Revenue=92,190/35%
Sales Revenue= $263,400
Therefore What sales revenue is needed for Peggy to break even is $263,400
Answer:
competitive advantage
Explanation:
A competitive advantage is the ability of a company to perform better than its competitors based on a unique value it offers to consumers. For example exclusive access to a resource, low pricing of same goods with competitors, highly skilled labour, geographic location, and brand recognition.
ABC manufacturing employs top professionals, so it is leveraging on its highly skilled labour to get competitive advantage in the industry.
