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Mekhanik [1.2K]
3 years ago
15

Poland Springs produces a variety of bottled water beverages, and as the market continues to show growth potential for new flavo

rs and varieties of bottled water, the company should ________ its product lines
Business
1 answer:
Harlamova29_29 [7]3 years ago
7 0

Answer:

Increase the depth of.

Explanation:

As the above case may be a product line can explain the variety in marketing and selection of a product and any commodity as the case may be and as the said company increases in growth, its product depth line should be increased. Therefore, a product line goal can be to maximize profits by positioning new products with the highest number of features or with the most cutting-edge individual features at the highest price point. And also you’ll be keeping a base product on sale as a lower-priced alternative

One of the benefit of this been set i.e product line; is to let potential customers know the particular product that will tend to fit their capability in many cases as the case may be in product selection.

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Consider a risky portfolio. The end-of-year cash flow derived from the portfolio will be either $150,000 or $290,000 with equal
lara [203]

Answer:

(A) The price you will be willing to pay for the portfolio is $194,690.

(B) The expected rate of return is 13%.

(C) The price you will be willing to pay for the portfolio is $181,818.

Explanation:

A. If you require a risk premium of 7%, how much will you be willing to pay for the portfolio?

The amount you be willing to pay for the portfolio can be calculated using the following formula:

The price you will be willing to pay for the portfolio = Expected cash flow / (1 + Required rate of return) ................... (1)

Where;

Expected cash flow = ($150,000 * 0.5) + ($290,000 * 0.5) = $220,000

Required rate of return = Risk free rate + Risk premium = 6% + 7% = 13%, or 0.13

Therefore, we have:

The price you will be willing to pay for the portfolio = $220,000 / (1 + 0.13) = $220,000 / 1.13 = $194,690

B. Suppose the portfolio can be purchased for the amount you found in (a). What will the expected rate of return on the portfolio be?

The expected rate of return (E(r)) can be calculated using the following formula:

Amount to be paid for the portfolio * [1 + E(r)] = Expected cash flow

Therefore, we have:

$194,690 * [1 + E(r)] = $220,000

$194,690 + ($194,690 * E(r)) = $220,000

$194,690 * E(r) = $220,000 - $194,690

$194,690 * E(r) = $25,310

E(r) = $25,310 / $194,690 = 0.13, or 13%

Therefore, the expected rate of return is 13%.

C. Now suppose you require a risk premium of 15%. What is the price you will be willing to pay now?

Required rate of return = Risk free rate + Risk premium = 6% + 15% = 21%, or 0.21

Using equation (1) in part A, we have:

The price you will be willing to pay for the portfolio = $220,000 / (1 + 0.21) = $220,000 / (1.21) = $181,818

6 0
3 years ago
A company pays its employees $2,900 each Friday, which amounts to $580 per day for the five-day workweek that begins on Monday.
Readme [11.4K]

Answer:

$2,320

Explanation:

Calculation to determine what amount of salaries earned but unpaid at the end of the accounting period is:

Ending salaries earned but unpaid=$2,900-$580

Ending salaries earned but unpaid=$2,320

($2,900-580)

Therefore the amount of salaries earned but unpaid at the end of the accounting period is: $2,320

5 0
3 years ago
Refer to the payoff matrix. bob's burgers and sam's sandwiches are competing restaurants in a small town. both are considering a
tamaranim1 [39]

Answer:

the correct answer is the option D: neither firm has a dominant strategy

Explanation:

To begin with, if both firms decides to add pizza to their menu then they both will be competing with that new item in the market and therefore that none of them will be dominant due to the fact that both are now producing and selling the good. Moreover, it is not a nash equilibrium due to the fact that it is not stated if the players know the other one strategy and even though that the best strategy to take in order to establish one's dominance is to add pizza to the menu, what happens here is that both take that strategy making it in a situation where both tried their best to improve their situation and ended up using the same strategy.

3 0
3 years ago
Ralph owns a small pizza restaurant, where he works full-time in the kitchen. His total revenue last year was $100,000, and his
Ulleksa [173]

Answer:

His total economic profit for the year was –$1,000. The right answer is b.

Explanation:

In order to calculate the total economic profit for the year, we have to use the following formula:

Total economic profit = total revenue - total explicit cost - implicit cost =

Acording to the data:

Total Revenue=$100,000

Total explicit cost= ($3,000×12)+($2,000×12)+($500×12)=$ 66,000

implicit cost= $ 35,000

Hence, Total economic profit= $100,000 - $66,000 - $35,000 = -$1,000

8 0
3 years ago
In what ways can succession planning be regarded as a type of contingency planning?
avanturin [10]

Answer & Explanation: A contigency plan refers to a plan to achieve an outcome other than in the usual plan. A succession planning involves identifying and developing new leaders who can easily replace exisiting leaders when the need arises.

Succession planning is a type of contingency plan as its goal is to accomodate the transfer of ownership/ managerial roles to a successor should the owner become disabled, dies or unable to operate business.

For example, a business owner may plan to transfer ownership of his business to his child but dies prematurely. Having already identified several successors, as a contingency plan one of them can run the business until the child mentioned in the will becomes of age and able to take over. This ensures the going concern of the business.

5 0
3 years ago
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