Complete Question: Many banks and phone companies now charge fees for once-free services to ensure minimum customer revenue levels. This helps the banks to ________.
A) reduce the rate of customer defection
B) make low-profit customers more profitable
C) enhance the growth potential for each customer through cross-selling
D) increase the longevity of the customer relationship
E) focus disproportionate effort on high-value customers
Answer:
B) make low-profit customers more profitable
Explanation:
Many banks and phone companies now charge fees for once-free services to ensure minimum customer revenue levels. This helps the banks to make low profit customers more profitable.
The basic logic behind this strategy is that when customers find something coming free, then they start taking it for granted, they don't pay much attention to it, therefore, when the some services are free, customers will not be spending much on them, like upgrading, monthly plan up-gradations, monthly or annual subscriptions. Consequently, to turn the those customers into highly valuable customers, companies charge for the services which were free of cost in the past.
Answer:
790,000, i.e. $79 x 10,000= 790,000
. Yes, the manufacturer should change the design. 666,667 (when it goes from 1/10,000 to 1/15,000). It is 500,000 (when it goes from 1/10,000 but 1/20,000)
. No, the benevolent social planner would not agree with the manufacturer's decision.
Explanation:
In the estimates provided by the manufacturer, the total cost of the design is equivalent to $79 x 10,000= 790,000. There should be an alteration in the design to remove the necessary precautions. If the probability is different from the estimate provided by the manufacturer, the planner will disagree with the decision made by the manufacturer. For example, a change to 1/15000 will make the total cost to be approximately $666,667.
Answer:
D. Accounts ReceivableStanton, debit $20,000; Sales, credit $20,000, and Delivery Expense, debit $500; Cash, credit $500
Explanation:
The Sale transaction must be ;
Trade Receivable - Stanton Company $20,000 (debit)
Revenue $20,000 (credit)
<em>Recognise the Revenue and Asset - Stanton Company</em>
Shipping Cost $500 (debit)
Bank $500 (credit)
<em>Recognise the shipping cost and de-recognise the cash asset</em>
Answer (Marginal costs)
The answer is marginal costs because they are the highest in the margin.
Hope this helps have a nice day :)
