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Doss [256]
3 years ago
12

A local pizza parlor adds special seasonal pizza to its menu every month, and they are thinking of permanently adding one to the

menu. But one employee suggests that it's not a specific pizza that people like, it's getting to try something new. So they look back at the sales for the special pizza for the past 4 months. Is there evidence that people have a preference for some of the special pizzas more than others?
Business
1 answer:
polet [3.4K]3 years ago
6 0

Answer:

If the past analysis suggests that the customers consume more of the special flavors then that special flavor can be added to the menu permanently. But the analysis is to be made that of which flavor is consumed more than the regular ones {already in the menu}. The taste of customers is important and this will help in adding more seasonal flavors {they can be added in the regular menu if the customers prefer new flavor}. If the analysis finds that customers don't consume special flavors for more than a single time than new flavors needs to be launched every month in order to secure high number of sales.

This 4 month analysis will enable the local pizza parlor achieve a good customer satisfaction and reach its goal.

Explanation:

If the past analysis suggests that the customers consume more of the special flavors then that special flavor can be added to the menu permanently. But the analysis is to be made that of which flavor is consumed more than the regular ones {already in the menu}. The taste of customers is important and this will help in adding more seasonal flavors {they can be added in the regular menu if the customers prefer new flavor}. If the analysis finds that customers don't consume special flavors for more than a single time than new flavors needs to be launched every month in order to secure high number of sales.

This 4 month analysis will enable the local pizza parlor achieve a good customer satisfaction and reach its goal.

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Suppose you started a new all-equity financed company that is expected to generate an ROE of 15% indefinitely. The current book
Luda [366]

Answer:

The value of the stock at start-up = $67.5

Explanation:

According to the dividend valuation model , the current price of a stock is the present value of the expected future dividends discounted at the required rate of return  

This principle can be applied as follows:  

The value of stock today is the present value of the future return discounted at the required rate of return

The return can be computed as the ROE × Book value of share

Return = 15%× 30 =4.5

Price of stock today = D× (1+g)/r-g

D= current return, g- growth rate, r-required rate of return

DATA: D= 4.5, g= 5%, r= 12%

PV  = 4.5× (1.05)/(0.12-0.05)

= 67.5

The value of the stock at start-up = $67.5

7 0
3 years ago
"Mrs. Smith operates a business in a competitive market. The current market price is $8.10. At her profit-maximizing level of pr
Molodets [167]

Answer:

Mrs.Smith should continue to operate the business in the short run but shut down in the long run.

Explanation:

According to the shut down rule, at the profit-maximizing positive level of output, a business in a competitive market should continue to operate in the short-term if the price equals to or is greater than the average variable cost, but should shut down in the long term if the price is less than or equal to total cost. Here,

price = $8.10

avg variable cost = $8.00

avg total cost = $8.25

Mrs.Smith should continue to operate the business in the short run but shut down in the long run.

6 0
3 years ago
Read 2 more answers
Estimating your expenses means ​
natka813 [3]
It Means you’re staying up-to-date on what you pay for and what leftover money you will have possibly?
3 0
4 years ago
Read 2 more answers
Marko, Inc., is considering the purchase of ABC Co. Marko believes that ABC Co. can generate cash flows of $5,000, $10,000, and
Kaylis [27]

Answer:

The maximum that Marco is willing to pay to buy ABC Co. today is $23967.0645

Explanation:

The maximum amount that Marco will be willing to pay today will be the present value of the expected cash flows discounted at the required rate of return. Using the discounted cash flows approach also known as DCF approach, we can calculate the present value of the cash flows,

Present Value = CF1 / (1+r) + CF2 / (1+r)^2 + ... + CFn / (1+r)^n

Where,

  • CF is the cash flow
  • r is the required rate of return

Present value = 5000 / (1+0.12)  +  10000 / (1+0.12)^2  +  16200 / (1+0.12)^3

Present value = $23967.0645

The maximum that Marco is willing to pay to buy ABC Co. today is $23967.0645

8 0
3 years ago
The state collects a gasoline tax that must be used to support highway construction and maintenance. The gasoline tax revenue sh
gayaneshka [121]

Answer:

Special revenue fund.

Explanation:

A special revenue fund is a government account created to collect money that is used for an specific purpose or project. The money collected by this type of account can only be used for the specific purpose for which it was established.

In this case, the revenue collected from the gasoline tax can only be used for highway construction and maintenance.

8 0
3 years ago
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