Answer:
<em>c) contractual vertical marketing system.</em>
Explanation:
A contractual vertical marketing system <em>requires a legal agreement to manage the overall process between the various levels of the distribution or production chain.</em>
This system allows businesses to take advantage of economies of scale and advertising bounds.
Franchise system, sponsored retail and sponsored wholesale are aspects of a vertical marketing contractual framework.
Answer:
Explanation:
Selling price per unit (next year) = 30 + 10 % of 30 = $33
Variable cost per unit (next year) = 30 * 40 % = $12
Contribution per unit (next year) = Selling price per unit (next year) - Variable cost per unit (next year) = 33 - 12 = $21
Fixed expenses = $68,250
Break even point (in units) = Fixed expenses / Contribution per unit.
Break even point (in units) = 68,250 / 21
= $3,250
Answer:
Notes payable; $10,000
Explanation:
Given that,
Borrowing amount = $10,000
Time period = 60 day
Interest rate = 8%
On the due date of the note, avers co. paid the amount.
Therefore, this entry would be recorded by Avers with a debit to Notes payable with an amount of $10,000.
Interest amount = $10,000 × (60 ÷ 360) × 0.08
= $10,000 × 0.17 × 0.08
= $136
(Note: Assuming 360 days in a year)
Therefore, the Journal entry is as follows:
Notes payable A/c Dr. $10,000
Interest Expense A/c Dr. $136
To cash $10,136
(To record Avers pays the amount due in full)
Answer: Sky's effective interest rate on this loan is 8.39%.
In this question, we assume that interest is compounded annually.
Since Sky issues a non-interest bearing note, Star Finance will deduct 7 months' interest at 8% on the Face Value of the loan and pay the rest as principal to Sky.
Face value of the note $16 million
Discount Rate p.a 8%
Tenure of the note 7 months
[tex]Loan Amount received by Sky = Face Value - Discount on note[/tex]
So, Sky pays an interest of 0.746666667 on a sum of 15.25333333 for 7 months. This works out to a seven month interest of:
From this we can work out the effective interest rate for Sky as follows:
Answer:
Inventory turnover = 9.45
Explanation:
Inventory turnover is defined as the ratio between Cost of good sold and average inventory.
Average inventory is defined as follows, where BI = Beginning merchandise inventory and EI = Ending merchandise inventory:
then:
