Answer: B. $40,000, $960,000
Explanation:
The long term obligation will be 80% of the collateral value which will be:
= 80% × $1.2 million
= 0.8 × $1,200,000
= $960,000.
Therefore, the short term obligation will be:
= $1,000,000 - $960,000
= $40,000
Answer:
The total estimated CLV over a 5 year time horizon for someone who purchases a new vehicle at Eastern Motors is $3,410.40.
Explanation:
Margin on selling vehicle = Average vehicle selling price * Margin = $23,700 * 11% = $2,607
Margin generated by 78% of people who return for service over 5 years = Number of times * Margin generated on each service = 10 * $103 = $1,030
Total estimated customer lifetime value (CLV) = Margin on selling vehicle + (Margin generated by 78% of people who return for service over 5 years * 78%) + (Margin generated by 226% of people who do not return for service over 5 years * 22%) = $2,607 + ($1,030 * 78%) + ($0 * 22%) = $3,410.40
Therefore, the total estimated CLV over a 5 year time horizon for someone who purchases a new vehicle at Eastern Motors is $3,410.40.
The transparency of a competitive advantage refers to the extent to which COMPETITORS CAN IDENTIFY THE REASONS FOR THE COMPETITIVE ADVANTAGE OF ANOTHER COMPANY.
The transparency refers to the speed at which other companies can identify and understand the relationship of resources and capabilities that is supporting a successful company strategy.
