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3 years ago

A coupon on a 2-liter bottle of Pepsi, offering $1.00 off on a bag of potato chips, is which type of coupon:_____

Business

1 answer:

kifflom [539]3 years ago

5 0

Answer: a. cross-ruffing

Explanation:

Cross-ruffing coupons are coupons that are offered to a person buying a good on another good to encourage them to buy that other good as well. These are usually offered on goods produced by the same company or companies that have a relationship with each other.

They are a brilliant marketing ploy to result in one relating goods to another to boost sales. Offering a coupon on a bag of potato chips upon buying a bottle of Pepsi is there a cross-ruff coupon.

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A company operating under an EOQ policy enjoys rising annual demand for their products for three consecutive years. During this

Oduvanchick [21]

Answer:

Their order quantity will rise but the time between orders will fall.

Explanation:

Let's analyse the EOQ formula:

$Q_{opt} = \sqrt{\frac{2DS}{H}}$

If Demand increases

The dividend increase, so the quotient increase.

EOQ will rise.

<u>Only options b and c are correct on that statment.</u>

Now let's check the time between order:

$\frac{EOQ}{Demand} \times 365$

If we analyze the increase in demand:

√(2xΔDxS/H)/ ΔD

everything else is keep constant so we have:

√(CxΔD)/ ΔDx

If we use L'Hopital we can conclude this function limit is zero.

Anyway a more easy way to do it will be calculate with a demand of 1000

and then with a demand of 50,000 to notice how much the time between order decrease.

√(1000) / 1000 = 0.031622776

√(51000)/ 51000 = 0.004428074

<u>so we have EOQ increase and days between order decrease.</u>

Now only option B is correct !

8 0

3 years ago

Castor, Inc., is preparing its master budget for the quarter ended June 30. Budgeted sales and cash payments for merchandise for

kobusy [5.1K]

Answer:

Castor, Inc.

Cash Budget for the quarter ended June 30,

April May June

Beginning cash balance $13,500 $16,165 $31,795

Cash collection (25%) 13,500 7,625 10,375

Cash collection (75%) 22,875 31,125 19,125

Total cash receipts $49,875 $54,915 $61,295

Cash payments for goods 23,200 15,300 15,700

Sales commission (5% sales) 1,525 2,075 1,275

Shipping cost (3% sales) 915 1,245 765

Office salaries 4,500 4,500 4,500

Cash Disbursements $30,140 $23,120 $22,240

Loans Payable (Repayment) -3,570

Cash balance $16,165 $31,795 $39,055

Explanation:

A cash budget is a tool used by a company's management to forecast of the cash receipts and cash disbursements for a future period of time. It is an important financial management tool that can be used to decide when to borrow cash to meet shortages and when to invest excess cash to generate income. Through its preparation, management avoids liquidity problems which can ruin a business.

3 0

3 years ago

A company has the following information: Net credit sales = $400,000 Net income = $100,000 Average total assets = $80,000 Averag

andre [41]

Answer:

The average collection period of the company is 18 days

Explanation:

The formula for computing the average collection period of the company is as follows:

Average Collection period = 365 / Accounts receivable turnover ratio

where

Accounts receivable turnover ratio is computed as:

Accounts receivable turnover ratio = Net credit sales / Average accounts receivable

Putting the values above:

Accounts receivable turnover ratio = $400,000 / $20,000

Accounts receivable turnover ratio = 20

Now putting the values of the Accounts receivable turnover ratio in the formula of average collection period:

Average collection period = 365 / 20

= 18.25 or 18 days

8 0

3 years ago

For a typical firm, which of the following sequences is CORRECT? All rates are after taxes, and assume that the firm operates at

Temka [501]

Answer:

B) rs > WACC > rd.

Explanation:

The formula to compute WACC is shown below:

= Weightage of debt × cost of debt × ( 1- tax rate) + (Weightage of preferred stock) × (cost of preferred stock) + (Weightage of common stock) × (cost of common stock)

As we know that the risk of equity in comparison to debt is more. And the return in respect of equity is received as an interest whereas for the debt it is received as a dividend.

And, The WACC has come between debt and equity

6 0

3 years ago

Fowler, Inc., just paid a dividend of $2.70 per share on its stock. The dividends are expected to grow at a constant rate of 4.5

Galina-37 [17]

Answer:

<h2>Fowler, Inc.</h2>

a. Current price = Current Dividend/r - g

where r = Required Rate of Return

and g = growth rate

= $2.70/0.09 - 0.045

= $2.70/0.045

= $60

b. The price in six years' time, growing at 4.5%

= Current price x (1 + g)^6

= $60 x 1.30226

= $78.14

c. The price in thirteen years' time, growing at 4.5%

= $60 x 1.772196

= $106.33

Explanation:

a) Data and Calculations:

Current Dividend = $2.70

Dividends' constant growth rate = 4.5% p.a. indefinitely

Investors' required rate of return = 9%

Fowler, Inc.'s stock prices calculated using the dividend, growth rate, and investors required rate of return gives the intrinsic values of the stock for the current year, in six and thirteen years' time. The intrinsic value calculation eliminates the need to value the stock subjectively.

4 0

3 years ago