Answer:
Receivable turnover ratio = 8.1 times
Account receivable days = 44.9 days
Explanation:
<em>Th account receivable days is the average length of time it takes a business to collect amount due on account from customers</em>
A<em>ccount receivable ratio = Net sales /Average account receivable</em>
<em>Account receivable days = (Average receivable/Net sales) × 365 days</em>
<em>Average account receivable</em>
= (Receivable at the beginning + Receivable at the end)/2
= ( 4,830+ 5,130)/2
=4980
<em>Note that the accounts receivable balance at the end of 2015 will be the opening balance at the beginning of 2016. The closing balance of 4,830 of 2015 will be the opening balance for 2016</em>
Receivable turnover ratio
=45,500/4980
= 8.1 times
Account receivable days
= (4980/45,500)× 365 days
= 44.9 days
Answer:
The Customer Lifetime Value of firm A amounts to $41,405. Hence, the correct option is 3
Explanation:
The formula to compute the Customer Lifetime Value of firm A is:
Customer Lifetime Value of firm A = Average annual sales × Average Profit Margin × Uniform series PW ( Present Worth) factor
= $55,000 × 15% × 5.0188
= $41,405
where
Average annual sales is $55,000
Average Profit Margin is 15%
We need to find out this:
The formula to compute this:
Uniform series PW factor = ( 1 + i%) ^ n - 1 / i % × ( 1 + i%) ^ n
= ( 1 + 15%) ^ 10 - 1 / 15% × ( 1 + 15%) ^ 10
= (1.15 ^ 10 -1) / (0.15 × 1.15 ^10)
= 5.0188
Answer:
D
Explanation:
A monopoly is when there is only one firm operating in an industry. there are usually high barriers to entry of firms. the demand curve is downward sloping. it sets the price for its goods and services.
An example of a monopoly is a utility company
A natural monopoly occurs due to the high start-up costs or a large economies of scale.
Natural monopolies are usually the only company providing a service in a particular region
Characteristics of natural monopolies
- they have a large fixed cost
- The firms have a low marginal cost
- They occur naturally through the free market. It does not occur by government regulation or any other force
Answer:
Increase consumer recognition and awareness of product offerings.
Explanation:
It is difficult to stand out in the market if you don't have a specific identity. Marketing a range of products through a brand helps increase recognition. There are tons of companies that sell chocolate, but Hershey's is the most recognizable and has helped all their various products stand out simply by being associated with the name Hershey's.
The resource that is sustainable is Sunlight
