It is company policy to get "slotting allowance" in order to secure shelf space for new brands.
Slotting allowance or fee is the expense charged to makers/producers by the market retailers for different reasons like keeping their items, stocking the item in its stockroom, or stock and IT support. The slotting allowance may likewise be charged on the marketing expenditure brought about by the organization for the item.
The option of becoming less ignorant and much more focused or thoughtful about your grammar.
Answer:
The answer is: $90,000
Explanation:
We must first determine the cost of goods sold:
- COGS = variable costs = 70% x 1,000,000
I will assume all fixed costs are operating expenses.
Then we elaborate a simple income statement:
Sales $1,000,000
<u>COGS ($700,000) </u>
Gross profit $300,000
<u>Operating expenses ($210,000) </u>
Operating profit $90,000
Answer:
1. Measure of the percentage change in earnings before interest and tax or operating cash flow:
B) Degree of operating leverage
2. P/E Ratio of 10 indicates that:
c. The value of the stock will be 10 times the initial investment at the time of maturity.
Explanation:
Company B's degree of operating leverage is the financial measure that shows the degree of change of the operating income of the company in relation to a change in her sales revenue. With this measure, investors and analysts of Company B are able to evaluate how sales impacts the company's operating income. There are many ways to measure a company's degree of operating leverage. One of the methods subtracts the variable costs of sales and divides that number by sales minus variable costs and fixed costs.
Company A's P/E ratio or price/earnings ratio is the measure of the relationship between the current market price and its earnings per share. It is used to evaluate the value of the company's stock. It points out whether the company's stock is undervalued, overvalued, or correctly valued.
