Answer:
Direct expenses.
Explanation:
The departmental contribution is determined by deducting the direct expense from the amount of sales
In mathematically,
The following formula should be used
Departmental contribution = Department revenues - direct expense
Here The expenses to be - rent, utilities, taxes, insurance, etc
ANd, It is arrive after paying off the direct expenses that related to the overhead.
Answer:
Improve products and services at the same cost
Explanation:
According to my research on different ways of improving business, I can say that based on the information provided within the question Yolanda will likely attempt to either provide the same quality at a lower cost or Improve products and services at the same cost. This can be said because it is the only other logical option in order to increase value to the customers. Since by improving the quality of the products and services but still charging the same amount you are providing your customers with a great increase in value.
I hope this answered your question. If you have any more questions feel free to ask away at Brainly.
To carry out this process of division of the <span>company's vast customer base into distinct segments so that the company's sales people can specialize in one line of business only</span>, it is necessary for Milton to possess sound market knowledge. Sound market knowledge involves knowledge, data and information about the product and about the customers. With this type of market knowledge Milton will be able to meet external users wants and needs and to present them the product on a suitable way. <span />
Answer:
Tax multiplier= 2,9
Explanation:
Tax multiplier represents the multiple by which gross domestic product (GDP) increases (decreases) in response to a decrease (increase) in taxes.
In the simple version of tax multiplier, it is assumed that any increase or decrease in tax affects consumption only (and has no effect on investment, government expenditures, etc.)
The formula is:
TMs=MPC/MPS=MPC/(1-MPC)
TMs= is the simple tax multiplier;
MPS= marginal propensity to save (MPS); and
MPC= marginal propensity to consume.
In this exercise, we do not possess the required information to use the general formula.
We need to use an alternative formula:
Decrease in taxes= change in GDP/tax multiplier
tax multiplier= change in GDP/Decrease in taxes
tax multiplier= 130,5billion/45billion=2,9
Answer:
Explanation:
The cost of equity can be estimated using two (2) different models:
- <em>The Dividend Valuation Model</em>
- <em>The capital asset pricing model (CAPM)</em>
<em>The Dividend Valuation Model(DVM) is a technique used to value the worth of an asset. According to this model, the value of an asset is the sum of the present values of the future cash flows would that arise from the asset discounted at the required rate of return. </em>
The model is stated below as follows
P = D(1+g)/ke-g)
<em>The capital asset pricing model (CAPM): relates the price of a share to the market risk or systematic risk. The systematic risk is that which affects all the all the economic agents, e.g inflation, interest rate e.t.c
</em>
<em>This model is considered superior to DVM. Hence, we will use the CAPM</em>
Using the CAPM , the expected return on a asset is given as follows:
E(r)= Rf +β(Rm-Rf)
E(r) =? , Rf- 2.86%, Rm-Rf - 7.00 β- 1.23
E(r) = 2.86% + 1.23× 7%
= 2.86% + 8.61%
= 11.47
%
Cost of equity= 11.47
%
