Answer:
A) $514,000.
Explanation:
Operating income = Gross profit - Operating expenses
Operating income = $629,000 - $115,000
Operating income = $514,000
Answer:
Average Customer Retention rate = 80%
Average Value of Sales per year per customer = $120
Average customer acquisition cost = Customer acquisition oriented market expenses per month/
number of new customers acquired per month
Average customer retention cost = $75
CLV =[1/(1- Average customer retention rate)] x (average value of sales per year per customer)-(average customer acquisition cost + average customer retention cost)
![= [1/(1-0.8)] x 120-(40+75)](https://tex.z-dn.net/?f=%3D%20%5B1%2F%281-0.8%29%5D%20x%20120-%2840%2B75%29)
=$485
A) Average customer retention rate =90%
B) Average value of sales per year per customer = $125
C) Average customer acquisition cost =$60
D) Average customer retention cost =$100
CLV = [1/(1- Average customer retention rate)] x (average value of sales per year per customer)-(average customer acquisition cost + average customer retention cost)
![= [1/(1-0.9)] x 125 - (60+100)](https://tex.z-dn.net/?f=%3D%20%5B1%2F%281-0.9%29%5D%20x%20125%20-%20%2860%2B100%29)
E) Customer Lifetime Value = 1090
Explanation:
Here are the spreadsheets.
<span>The marginal propensity to consume is a metric
that quantifies the concept of increase in consumption with an increase in
income. Mathematically MPC is defined as:</span>
MPC = Change in consumption / Change in income
Purchase of goods and services is considered as
consumption, therefore:
Change in consumption = $16 billion
In the government’s perspective, taxes are
considered as income, therefore the problem ask us to find for the necessary change
in tax collection to maintain equilibrium GDP. Substituting the values in the
formula:
0.80 = $16 billion / Change in income
Change in income = $20 billion
<span>Therefore the government should increase the tax collection by $20
billion.</span>
Answer:
% in T bills = 18.92%, % in P = 81.08%
Explanation:
Portfolio return = Weighted average return
Return of portfolio P = 0.14*0.6 + 0.10*0.4
Return of portfolio P = 0.124
Let % money in T bills be x
0.11 = 0.05*x + 0.124*(1-x)
0.11 = 0.05x + 0.124 - 0.124x
0.014 = 0.074x
x = 18.92%
Hence, % in T bills = 18.92%, % in P = 81.08%
Answer and Explanation:
The journal entry to record the factory labor cost is shown below:
Work in progress ($2,060 + $1,710 + $3,130 + $3,520 + $2,150 + $1,410 + $9,540) $23,520
Factory Overhead $10,980
To wages payable $34,500
(to record the factory labor cost)
Here work in process and factory overhead is debited as it increased the assets and expenses and credited the wages payable as it also increased the liabilities
