Answer:
$1,980
Explanation:
The computation of the amount of cash Best Discount Store received is shown below:
= Sale value - returned merchandise inventory - discount
where,
Discount is
= (Sale value - returned merchandise inventory) × discount rate
= ($3,000 - $1,000) × 1%
= $20
So, the amount of cash received is
= $3,000 - $1000 - $20
= $1,980
The given statement " The Benchmark Prediction estimates unit sales assuming your product competes with a standardized, mediocre playing field. It does not use your actual competitors products. It is useful for experimenting with price, promo and sales budgets. It is useless for forecasting " is TRUE.
Explanation:
The Benchmark Prediction predicts unit sales if your company is in competition with a normal mediocre sector. It doesn't use the goods of your current competitors. This is useful for testing the budgets for prices, promotions and sales. For analysis, it is unnecessary.
Benchmark prediction somehow provides you with the idea whether decisions are good or not. Any choices in R&D and the benchmark prediction go down and make bad choices if they go up and go well for you.
