Answer:
Option (d) is correct.
Explanation:
Given that,
Customer purchases $340 worth of merchandise from The GAP using a gift card.
A gift card is having an amount of money that is used by the gift card holder for the purpose of purchasing goods. So, in the books of GAP, the value of gift card is debited as an unearned revenue and the sales revenue is credited.
The journal is as follows:
Unearned revenue A/c Dr. $340
To sales revenue A/c $340
(To record the merchandise sold for a gift card)
Answer:
The correct option is e. The company's value of operations one year from now is expected to be 5% above the current price.
Explanation:
Free cash flow (FCF) refers to the cash that a company generates after taking into consideration cash outflows needed to support operations and maintain the capital assets of the company.
When the free cash flow of a company is expected to grow at a certain constant rate, the implication is that the the value of operations of that company one year from the current period is expected to be higher than the current price.
Based on the explanation above, the correct option is e. The company's value of operations one year from now is expected to be 5% above the current price.
Answer:
c. franchising
Explanation:
Franchising -
It refers to the practice of financing any startup or organization , under a specified name , is referred to as franchising .
The franchisee need to pay some specific amount as soon as he take up the brand name , which is referred to as the franchise agreement .
Hence , from the given scenario of the question ,
The correct answer is c. franchising .
Answer:
Products Selling price Unit variable cost Contribution per unit
$ $ $
M 7 3 4
N 6 2 4
O 6 3 3
19 8 11
Break-even point in composite units
= <u>Total fixed cost</u>
Contribution per unit
= <u>$340,000</u>
$11
= 30,909 units
Break-even point for the current sales mix
M 3/6 x 30,909 units = 15,455 units
N 1/6 x 30,909 units = 5,151 units
O 2/6 x 30,909 units = 10,303 units
Explanation:
In this case, we need to calculate contribution per unit of each product by deducting the unit variable cost of each product from their respective selling prices. Then, we will obtain the break-even point in composite units by dividing the total fixed cost by overall contribution per unit.
Then, we will determine the break-even point for the current sales mix by multiplying the proportion of each product in the sales mix by the break-even point in composite units.
Some salesperson do try to start a new interaction by asking for something small from a potential customer because they know getting small acts of cooperation may lead to larger actions. The answer in this question is simply because they know getting small acts of cooperation may lead to larger actions.
