Here's the journal entry:
1. On March 3, record the merchandise return:
Debit: Sales Returns and Allowances - $500
Credit: Accounts Receivable - $500
2. On March 11, record the payment received:
Debit: Accounts Receivable - $1,300 ($1,800 - $500)
Credit: Cash - $1,300
When the company receives payment on March 11, the journal entry recorded would involve Accounts Receivable, Sales Returns and Allowances, and Cash accounts.
Considering the credit terms of 2/10, n/30, the customer was eligible for a 2% discount if they paid within 10 days, but they paid on the 11th day, so no discount is applied.
In summary, the company records a $500 reduction in Accounts Receivable for the merchandise return, and then records the receipt of the $1,300 payment on March 11, reflecting the balance due after the return.
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If a security's realized return is negative, it must have been true that the expected return was greater than the required return.true or false
The needed rate of return for a security will be lower than its expected rate of return at equilibrium. It must be true that the expected return was higher than the needed return if a security's realized return is negative.
The period of the security is shortened in direct proportion to the interest rate. the bond's cash flows' weighted average time to maturity. A assessment of a bond's interest rate risk called duration takes into account the maturity, yield, coupon, and call features of the bond. The sum of all these variables is used to determine how sensitive the value of a bond might be to changes in interest rates. The rate of return is determined by adding the dividend rate of return and the price change rate of return.
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Blogs are used for all of the following except
O professional development
O editing corporate documents
O sharing news
O promotions
Answer:
B - editing corporate documents
Answer:
I thing promotions
Explanation:
please mark me branlast
If the hourly price of capital is $40 and the hourly wage rate is $10, which production technology should be selected
With an hourly capital cost of $40 and an hourly wage rate of $10, a firm should generally consider a labor-intensive production technology to minimize costs. However, it is crucial to evaluate other factors such as efficiency and productivity before making a final decision.
Based on the given information, we can determine which production technology should be selected by comparing the costs associated with capital and labor. The hourly price of capital is $40, while the hourly wage rate is $10. This means that, per hour, capital is four times more expensive than labor.
To decide which production technology to select, a firm should analyze its production process and identify the technology that minimizes its costs. If technology is labor-intensive, it will rely more on workers and less on capital equipment. On the other hand, a capital-intensive technology relies more on capital equipment and less on labor.
Considering the cost differences between capital and labor, a firm should lean towards selecting a labor-intensive technology, as it would result in lower production costs. However, this decision also depends on factors such as productivity, efficiency, and the specific requirements of the production process.
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According to the equation of exchange, if m = $800, p = 8, and y = $200, then v equals
A. 32
B. 4
C. 2
D. 100
The equation of exchange is MV = PY, where M is the money supply, V is velocity, P is price level, and Y is real output. In this case, we are given M = $800, P = 8, and Y = $200. To find V, we can rearrange the equation as V = PY/M is C. 2.
Plugging in the values we have, we get V = (8 x $200)/$800 = 2.
Therefore, the answer is C. 2.
According to the equation of exchange, if m = $800, p = 8, and y = $200, then v equals:
The equation of exchange is represented as MV = PY, where:
M = money supply (m = $800)
V = velocity of money (v)
P = average price level (p = 8)
Y = real GDP (y = $200)
We need to find the value of V. To do this, we will rearrange the equation to solve for V:
V = PY / M
Now, plug in the given values:
V = (8 * $200) / $800
V = ($1,600) / $800
V = 2
So, the correct answer is: C. 2
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An opinion poll was conducted to find the reaction to a proposed civic reform in 100 members of each of the two political parties. The information is tabulated below:
Favourable Unfavourable. Indifferent
Party A 40 30. 30
Party B. 42. 28. 30
Test for independence of reaction with the
affiliations.
In order to test the independence of reaction with affiliations in an opinion poll, the chi-square test for independence is used. To conduct a chi-square test for independence of reaction with affiliations: Table of observed frequencies is generated for each political party Frequencies are converted into percentages.
Calculations are made based on the null hypothesis A table of expected values is generated based on the null hypothesis Observed values are compared to the expected values to determine the deviation from the null hypothesis .A chi-square test statistic is calculated based on the deviation from the null hypothesis. The obtained test statistic is compared to the chi-square distribution table to find the level of significance. Test for independence of reaction with affiliations: Party A Favorable different - 30Total - 100PartyBFavorable - 42,28, Indifferent - 30Total - 100The total sample size is 200. Frequencies can be converted into percentages as follows: Party A: Favorable - 40%, 30%, Indifferent - 30%.Party B: Favorable - 42%, - 28%, Indifferent - 30%.The null hypothesis states that there is no association between affiliations and reactions to a proposed civic reform.
The observed values and expected values are as follows: Observed Values Expected Values (Under the Null Hypothesis)PartyAFavorable30Unfavourable30Indifferent40Total 100PartyBFavorable30Unfavourable30Indifferent40Total 100Using the formula for the chi-square test statistic:χ2 = ∑ (O − E)² / E Where O is the observed value, E is the expected value, and ∑ is the sum of all values. The test statistic is calculated as follows:χ2 = [(40 - 30)² / 30] + [(30 - 30)² / 30] + [(30 - 40)² / 40] + [(42 - 30)² / 30] + [(28 - 30)² / 30] + [(30 - 40)² / 40]χ2 = (100/3) + (10/3) + (25/4) + (144/3) + (4/3) + (25/4)χ2 = 34.25The degrees of freedom () for the chi-square test for independence of reaction with affiliations is calculated as:(r-1) (c-1) = (2-1) (3-1) = 2 degrees of freedom. To determine the level of significance, the obtained test statistic is compared to the chi-square distribution table for 2 degrees of freedom at the desired level of significance. At the 0.05 level of significance, the critical value is 5.991. Since the obtained test statistic (χ2 = 34.25) is greater than the critical value (5.991), we reject the null hypothesis. Therefore, there is a significant association between affiliations and reactions to a proposed civic reform.
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If a causal relationship can be established, expenses are reported in the same period that the related revenue is recognized.
a. true
b. false
In case if a causal relationship can be established, it is an obligation to report the expenses in the same period that the related revenue is recognized. Therefore, the statement given above is true.
What is the significance of causal relationship?A causal relationship can be referred to or considered as a relationship that is generated over a course of long run through a chain of events. The expenses are clubbed under the same account in case of such relationship.
Moreover, if the chain of events is a part of the same period, then the expenses related to the causal relationship are also considered in the same period when the revenues are recognized, even if unrealized.
Therefore, the statement given above holds true and states regarding the significance of causal relationship.
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Does decreasing the value of the local currency contributes in the increase of the economic growth rate
Answer:
Yes
Explanation:
Devaluation is the purposeful reduction of the value of a nation's currency in relation to another currency or group of currencies. When the currency is devalued, it can lead to an increase in the export of the nation's produce because the price of the exported goods is cheaper and foreign countries are most likely to purchase cheap goods.
The economic growth rate of a nation is the change in percent of goods and services produced in a country over a period of time. It gives an idea of the income of the average citizen in the country. When the value of the local currency is devalued, exports will increase and that will also cause an increase in the income of citizens. This translates to a resultant increase in the economic growth rate of the nation.
Baako Ltd purchase motor vehicle as follows date 01/01/13 800,000$,01/01/13 400,000$,01/04/15 600,000. The company adopts straight line method of depreciation at the rate 10% per annum from the date of purchase separate account is prepared for provision for depreciation. On 30th June, 2014 the motor vehicle which was purchase on 1st July was sold for 24,000$. You are required to prepare (a) motor vehicle account for the years 2013,2014 and 2015. (b) motor vehicle disposal account.
Baako Ltd purchase motor vehicle as follows date 01/01/13 800,000$,01/01/13 400,000$,01/04/15 600,000. The company adopts straight line method of depreciation at the rate 10% per annum from the date of purchase separate account is prepared for provision for depreciation. On 30th June, 2014 the motor vehicle which was purchase on 1st July was sold for 24,000$. You are required to prepare (a) motor vehicle account for the years 2013,2014 and 2015. (b) motor vehicle disposal account.
What is a source of equity financing?
A. securing short-term loans from a family member
B. receiving trade credit from suppliers
C. selling personal assets to raise funds
D. securing government loans
E. borrowing money from friends
How important is money
Answer:
very important
Explanation:
money is a global income source for everyone. we all have different types but it is all still money. now say one country got rid of money and had people pay for stuff using other things. if china did that lots of different countries wouldn't be able to get stuff from there unless they had so much of that product they could just give it up.
rship
If two or more people own a business equally, it is called a
O corporation
O sole proprietorship
O partnership
O limited liability company
Answer:
Partnership
Explanation:
A partnership is a formal arrangement by two or more parties to manage and operate a business and share its profits.
Impact of natural disasters on South Africa’s economic growth performance for 2020 in comparison with 2023
Natural disasters can have a significant impact on economic growth, both in the short term and the long term.
How can we prevent natural disasters?As a result, cutting back on pollution is the first step in mitigating potential natural disasters. States must also become more resilient by planning ahead and getting ready to deal with dangers associated with the climate, from implementing conservation and restoration measures to enhancing infrastructure.
In the short term, natural disasters such as floods, droughts, or storms can disrupt economic activity, damage infrastructure, and cause loss of life and property. This can lead to a decline in economic growth, as businesses are forced to suspend operations, and the government is required to divert resources toward relief efforts.
In the long term, natural disasters can also have lasting effects on the economy, particularly if they cause significant damage to infrastructure or disrupt critical industries.
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if japan can make 25 computers or 5 cellphones in one unit of labor, while south korea can make 4 computers or 1 cellphone, who has the comparative advantage?a. South Korea has the comparative advantage in both computers and phones.b. Japan has the comparative advantage in both computers and phones.c. South Korea has the comparative advantage in computers; Japan in phones.d. There is not enough information to saye. Japan has the comparative advantage in computers; South Korea in phones.
The correct answer is B. Japan has the comparative advantage in both computers and phones.
This is because Japan can produce more computers and cellphones with the same amount of labor compared to South Korea. In other words, Japan has a higher productivity in both goods.
A comparative advantage means that a country can produce a good at a lower opportunity cost than another country. In this case, Japan has a lower opportunity cost for both computers and cellphones, giving them the comparative advantage in both goods.
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josey manufactures dolls and estimates sales of $120,000 for november, $100,000 for december, and $150,000 for january. she sells each doll for $20 and the cost to make each one is $10. she expects 50% of the sales will be collected in the month of sale and the remaining 50% the following month. the beginning cash balance for november is $20,000. beginning inventory in november is 2,000 dolls and josey estimates to maintain at least 20% of next month's sales for ending inventory. fixed costs each month are $10,000. production and fixed costs are all paid in cash. ignoring october's sales, what is josey's estimated cash balance at the end of november?
Josey's estimated cash balance at the end of November is $10,000.
Calculate the doll sales for each month based on the estimated sales amounts:
November sales: $120,000 / $20 per doll = 6,000 dollsDecember sales: $100,000 / $20 per doll = 5,000 dollsJanuary sales: $150,000 / $20 per doll = 7,500 dollsCalculate COGS:
November COGS: 6,000 dolls x $10 per doll = $60,000December COGS: 5,000 dolls x $10 per doll = $50,000January COGS: 7,500 dolls x $10 per doll = $75,000Calculate ending inventory:
November ending inventory: 20% of December sales = 20% x 5,000 dolls = 1,000 dollsDecember ending inventory: 20% of January sales = 20% x 7,500 dolls = 1,500 dollsCalculate cash inflow:
November cash inflow: 50% of November sales x $20 per doll = $60,000December cash inflow: 50% of November sales x $20 per doll + 50% of December sales x $20 per doll = $60,000 + $50,000 = $110,000January cash inflow: 50% of December sales x $20 per doll + 50% of January sales x $20 per doll = $50,000 + $75,000 = $125,000Calculate cash outflow:
November cash outflow: COGS ($60,000) + Fixed costs ($10,000) = $70,000December cash outflow: COGS ($50,000) + Fixed costs ($10,000) = $60,000January cash outflow: COGS ($75,000) + Fixed costs ($10,000) = $85,000Therefore, the cash balance is:
Beginning cash balance: $20,000
Cash inflow: $60,000
Cash outflow: $70,000
Ending cash balance: $10,000
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Which of the following are part of the marketing mix? (Check all that apply)
Answer:
product, price, place, promotion—are often referred to as the marketing mix. These are the key elements involved in marketing a good or service, and they interact significantly with each other.
Explanation:
PLZZ mark brainlyist
The following information is applicable to Shine Wholesalers for the year 2020:
Budgeted sales: July R105 000 August R132 000 September R165 000
In October 2020, sales are expected to increase by 20% relative to sales in September 2020.
Cash sales amount to 20% of total sales.
55% of all credit sales are collected in the month of sale, with a discount of 10% to those debtors who pay during this time. The outstanding credit sales are collected in equal instalments over the next two months. There are no bad debts.
Purchases of raw materials are expected to be sufficient to meet 60% of the total sales for the next month. The company normally settles half of its creditors in the month following the month of purchase. The remaining creditors are paid two months after the month of purchase.
Wages and salaries are paid to employees at the end of the month in which they are earned. Wages and salaries are expected to be:
June R22 200
July R20 500
August R23 500
September R26 500
October R28 000
Rent amounts to R48 000 per annum. This amount is spread evenly throughout the year.
All other overheads amount to R38 160 per annum, including annual depreciation amounting to R22 500. Other overheads and depreciation are incurred evenly throughout the year.
An industrial printer which was recently purchased for R45 000 will be paid off in three equal instalments, commencing in August 2020.
The company expects to receive tax refunds of 28 700 from SARS in September 2020.
The company had taken a loan of R10 000 in January 2020. The loan will be repaid in four equal instalments. The last instalment will be repaid in September 2020.
The company’s bank balance at the end of August 2020 was R35 000. The management director of the company wants to revamp the company’s IT system in November 2020. This undertaking is expected to cost the company R400 000. She wants to know if the company will have sufficient cash to execute the project. Overdraft facilities are available.
Required: Prepare a cash budget for Shine Wholesalers for the months of September and October 2020. Note: show ALL calculations.
Based on the cash price range calculations for September and October 2020, Shine Wholesalers is projected to have a poor coins float in both months. Therefore, it may no longer have sufficient cash to execute the IT system revamp challenge in November 2020 without utilizing overdraft facilities or making necessary changes to its cash inflows and outflows.
To prepare a coins price range for Shine Wholesalers for the months of September and October 2020, we want to calculate the cash inflows and outflows for every month. Here's a step-through-step breakdown:
Cash Sales:
September: R165,000 x 20% = R33,000
October: R165,000 x 20% = R33,000
Credit Sales:
September: R165,000 - R33,000 (cash sales) = R132,000
Collections in September: R132,000 x 55% = R72,600 (10% bargain applies)
Collections in October: (R132,000 - R72,six hundred) / 2 = R29,seven hundred
Purchases of Raw Materials:
October: R165,000 x 60% = R99,000
Creditors Payment:
September: R99,000 / 2 = R49,500
October: R99,000 - R49,500 = R49,500
Wages and Salaries:
September: R26,500
October: R28,000
Rent and Other Overheads:
September: R48,000 / 12 = R4,000
Other Overheads: R38,160 / 12 = R3,180
Repayment of Industrial Printer:
August: R45,000 / 3 = R15,000
September: R15,000
October: R15,000
Tax Refunds:
September: R28,700
Loan Repayment:
September: R10,000 / four = R2,500
October: R2,500
Now, let's calculate the coin's price range for September and October 2020:
September:
Cash Inflows:
Cash Sales: R33,000
Collections from Credit Sales: R72,600
Tax Refunds: R28,700
Total Cash Inflows: R134,300
Cash Outflows:
Purchases of Raw Materials: R99,000
Creditors Payment: R49,500
Wages and Salaries: R26,500
Rent: R4,000
Other Overheads: R3,one hundred eighty
Loan Repayment: R2,500
Total Cash Outflows: R184,680
Net Cash Flow: R134,300 - R184,680 = -R50,380
October:
Cash Inflows:
Cash Sales: R33,000
Collections from Credit Sales: R29,700
Total Cash Inflows: R62,700
Cash Outflows:
Purchases of Raw Materials: R99,000
Creditors Payment: R49,500
Wages and Salaries: R28,000
Rent: R4,000
Other Overheads: R3,180
Loan Repayment: R2,500
Industrial Printer Repayment: R15,000
Total Cash Outflows: R201,180
Net Cash Flow: R62,seven-hundred - R201,a hundred and eighty = -R138,480
Based on the coins budget calculations, Shine Wholesalers can have bad coins drift of R50,380 in September 2020 and a larger bad cash flow of R138,480 in October 2020. This shows that the business enterprise might not have sufficient coins to execute the IT machine revamp venture in November 2020.
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Ami cut 6 and three-fourths inches off a long roll of paper. If the roll is now 36 and one-third inches long, how long was the original roll of paper? Write an equation and solve it to find the answer. 29 and StartFraction 7 Over 12 EndFraction inches 30 and StartFraction 7 Over 12 EndFraction inches 42 and StartFraction 1 Over 12 EndFraction inches 43 and StartFraction 1 Over 12 EndFraction inches
Answer: 43 1/12 inches
Explanation:
Since Amy Ami cut 6 3/4 inches off a long roll of paper and the roll is now 36 1/3, the length of the original roll of paper will be:
= 6 3/4 + 36 1/3
Note that the LCM of 4 and 3 is 12.
= 6 3/4 + 36 1/3
= 6 9/12 + 36 4/12
= 42 13/12
= 43 1/12 inches
BRAINLIEST PLS HELP!
How do "needs, wants, and demands" play into marketing? Explain each term.
needs: something you need to survive such as shelter, water and food
wants: something you would like to have such as entertainment
demands: the amount of people needing the item.
supply and demand are important for marketing so products you are selling can be managed.
like a Christmas tree in November and December the item has high demand and high supply
but in june and july there is no demand for christmas trees but supply is being created by growing them.
A $1200 invoice dated January 1 has cr edit terms of 3/10, net 30. If the buyer pays January 4, how much wil he need to pay? A. $1,164 B. $1,080 C. $900 D. $1,200
If the buyer pays at January 4, he will need to pay A. $1,164.
In general , The credit terms of 3/10 indicated that buyer can avail a 3% discount if the invoice is paid within 10 days that is first 10 days of the month, or they have to pay the full amount within 30 days.
In the given question buyer pays on January 4, which comes under discount period .Hence , 3% discount can be availed by the buyer. The discount for 3% of the invoice amount will be :
0.03 x $1200 = $36
Therefore, the amount the buyer needs to pay is:
$1200 - $36 = $1164
Hence, A is the correct option
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a(n) blank is a strategic approach for developing production standards that allows for inefficiencies from prior operating periods to be incorporated into the budget and therefore provides little incentive for any improvement.
A slack budget is a strategic approach for developing production standards that allows for inefficiencies from prior operating periods to be incorporated into the budget and therefore provides little incentive for any improvement.
This type of budget allows for a cushion of inefficiencies from previous operating periods to be built in, which can lead to complacency and little motivation for improvement. While it may provide some level of financial stability, it can ultimately hinder progress and innovation within the organization.
The term that best describes this strategic approach is "slack budgeting." Slack budgeting is a budgeting method that involves incorporating inefficiencies from prior periods into the budget, effectively setting low standards for production.
By allowing for slack, or excess capacity, in the budget, this approach can lead to complacency and a lack of motivation to improve efficiency, as any improvements would not be reflected in the budget. This can result in higher costs and lower productivity over time.
While slack budgeting may offer some benefits, such as reducing the risk of cost overruns, it can ultimately hinder a company's ability to compete and adapt to changing market conditions.
As such, it is important for organizations to evaluate the costs and benefits of different budgeting approaches and choose the method that best aligns with their goals and values.
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Rent and insurance are ex
examples of what type of cost?
Answer:
Fixed cost
Explanation:
Two investment options are as follows. Choice 1: Payments of $ 2700 now, $ 3200 a year from now, and $ 3760 two years from now. Choice 2: Three yearly payments of $ 3200 starting now. Assume interest is compounded continuously. (a) If the interest rate on savings were 4.67 %, which would you prefer? equation editorEquation Editor (Type in 1 for Choice 1, or 2 for Choice 2.) (b) What is the interest rate that would make both choices equally lucrative?
a.Since the present value for Choice 2 is greater, you would prefer Choice 2. your answer is 2.
b. If the interest rate were 6.12%, both choices would be equally lucrative.
(a) If the interest rate on savings were 4.67%, you would choose Choice 2. For the first choice, the present value would be calculated using the following formula:
PV = $2700 + ($3200/(1+0.0467)) + ($3760/(1+0.0467)²)PV = $2700 + $3063.42 + $3382.02 = $9145.44
The present value for Choice 2 would be:PV = $3200 + ($3200/(1+0.0467)) + ($3200/(1+0.0467)²)PV = $3200 + $3070.95 + $2938.47 = $9210.42
Since the present value for Choice 2 is greater, you would prefer Choice 2. Therefore, your answer is 2.
(b) To determine the interest rate that would make both choices equally lucrative, you would have to set the present values equal to each other, and then solve for the interest rate.
Setting the two equations equal to each other, we get: $2700 + ($3200/(1+r)) + ($3760/(1+r)²) = $3200 + ($3200/(1+r)) + ($3200/(1+r)²)Simplifying and rearranging terms, we get:$4660/(1+r)² - $1400/(1+r) = 0$4660/(1+r)² = $1400/(1+r)Solving for r, we get:r = 6.12%Therefore, if the interest rate were 6.12%, both choices would be equally lucrative.
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The geometric average annual return for a large capitalization stock portfolio is 10% for ten
years and 6% per year for the next five years. The geometric average annual return for the entire
15 year period is ________.
A) 9.08%
B) 8.65%
C) 8.22%
D) 9.52%
Answer:
B) 8.65%
Explanation:
Geometric Average Return = [(1 + r1) * (1 + r2) * - - - - - * (1 + rN)]1/N - 1
Geometric Average Return = [(1 + 0.10)^10 * (1 + 0.06)^5]^1/15 - 1
Geometric Average Return = [1.10^10 * 1.06^5]^1/15 - 1
Geometric Average Return = [2.59374*1.33823]^1/15 - 1
Geometric Average Return = (3.471021)^1/15 - 1
Geometric Average Return = 1.08650188155 - 1
Geometric Average Return = 0.08650188155
Geometric Average Return = 8.65%
Businesses are usually interested in promoting growth because it:
A. expands the frontier on their production possibilities curves.
B. weakens productivity for competing businesses.
C. reduces their need to pay a large staff of employees.
D. creates additional marketing value without extra investment.
Answer: A - expands the frontier on their production possibilities curves
Explanation:
It was correct when checked
Businesses are usually interested in promoting growth because it expands the frontier on their production possibilities curve. Hence, option A holds true regarding business growth.
What is business growth?An expansion in the scope of business, which gives business an opportunity to improve the productivity and increase the sales exponentially, ultimately leading to increased profitability, is known as business growth.
Increased productivity at a constant rate enables a business to assume expanding its production capacities on the production possibilities curve, which can be determined through graphical representation.
Hence, option A holds true regarding the business growth.
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True or false: Manufacturer's reps help small firms, or firms expanding into new markets, achieve extensive sales coverage without having to pay for full-time personnel. True false question. True False
According to business strategy, it is true that manufacturer's reps help small firms or firms expanding into new markets achieve extensive sales coverage without having to pay for full-time personnel.
This is because a manufacturer's rep is responsible for making sales on products made by the manufacturer.
However, while manufacturer's reps help small firms to expand through sales, they only get paid based on commission.
By getting paid based on commission, Manufacturers' reps won't pay full-time.
Hence, in this case, it is concluded that the correct answer is "True."
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A reference value involves a. comparing the costs and benefits of items from one particular manufacturer or distributor. b. products with which a consumer is familiar and items the consumer has not seen or used before.c. items of equal or greater value. d. substitute items.
Complete Question:
A reference value involves comparing the costs and benefits of?
Answer:
d. substitute items.
Explanation:
A price elasticity of demand can be defined as a measure of the responsiveness of the quantity of a product demanded with respect to a change in price of the product, all things being equal.
Mathematically, the price elasticity of demand is given by the formula;
\( Price \; elasticity \; of \; demand = \frac {Percentage \; change \; in \; price}{Percentage \; change \; in \; demand} \)
The demand for goods is said to be elastic, when the quantity of goods demanded by consumers with respect to change in price is very large. Thus, the more easily a consumer can switch to a substitute product in relation to change in price, the greater the elasticity of demand.
Generally, consumers would like to be buy a product as its price falls or become inexpensive.
Hence, a reference value involves comparing the costs and benefits of items substitute items.
A substitute item can be defined as a product (item) that a consumer sees as an alternative to another product (item) and as such would offer similar benefits or satisfaction to the consumer.
For substitute products (items), the cross-price elasticity of demand is always positive because the demand of a product increases when the price of its close substitute (alternative) increases.
Describe how a firm would need to adapt to the marketing of each of these products to suit the conditions of China, Germany and Saudi Arabia
What does it mean to say that people are risk averse for gains and risk seeking for losses?
In general, people tend to be risk averse when it comes to gains, meaning they prefer a guaranteed reward rather than taking a chance on a larger but uncertain reward.
On the other hand, people tend to be risk-seeking when it comes to losses, meaning they are more willing to take risks to avoid a potential loss.
This phenomenon, known as the "loss aversion" effect, is a cognitive bias that stems from the asymmetrical way people experience gains and losses. Losing something is typically felt more intensely than gaining something, leading people to take greater risks to avoid losses.
For example, a person may choose a guaranteed $50 over a 50/50 chance of winning $100 or winning nothing when it comes to gains. But when it comes to losses, that same person may be willing to take a greater risk to avoid losing $50, even if the potential outcome is uncertain.
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suppose that the strong form of the efficient markets hypothesis holds. consider a firm that is cutting its dividend. when would we expect to see an abnormal return? group of answer choices when the financial press reports that sources have indicated a cut is imminent. when the board votes to approve the reduced dividend. when the firm issues a press release explaining the move. when the ceo presents the plan to the board.
According to the strong form of the efficient markets hypothesis, all publicly available information is incorporated into stock prices.
Therefore, if a firm cuts its dividend, we would not expect to see an abnormal return because this information would already be reflected in the stock price.However, if the financial press reports that sources have indicated a cut is imminent, we may see an abnormal return as this would be new information not yet incorporated into the stock price. Similarly, when the firm issues a press release explaining the move, this could also result in an abnormal return as this would be new information not yet reflected in the stock price.On the other hand, when the board votes to approve the reduced dividend or when the CEO presents the plan to the board, these events are considered internal and would not be expected to impact stock prices. Hence, the correct options are "when the financial press reports that sources have indicated a cut is imminent" and "when the firm issues a press release explaining the move."
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A perfectly competitive firm has the cost function TC = 1000 + 2Q + 0.1 Q2. What is the lowest price at which this firm can break even?
Answer:
Concept & example of breakeven point
Explanation:
Break Even point is where, Total Revenue = Total Cost. So, dividing entire equation by Q, Average Revenue ie Price = Average Cost.
TC = 1000 + 2Q + 0.1 Q^2 , AC = TC / Q , AC = 1000 / Q + 2 + 0.1Q Lowest Price ie AR for breakeven, is where P = AC. So, P = 1000/Q + 2 + 0.1Q
Eg : For quantity Q = 100, minimum price for breakeven, at P = AC is (1000 / 100) + 2 + 0.1 (1000) = 100 + 2 + 100 = 202