The company's break-even point in unit sales using the formula method is 1,400 units.
The formula method's break-even unit sales using the given information is :
The sales price per unit is $15;
the variable cost per unit is $12;
the contribution margin per unit is $3 ($15 - $12 = $3);
and the fixed cost is $4,200 per month.
Break-even Unit Sales = Fixed Costs/Per Unit Contribution Margin
When the values are entered into the equation, the following results are obtained:
Break-even Unit Sales =4,200/3
break-even unit sales = 1.400
Hence, According to the formula method, the break-even unit's sales are 1,400 units.
Learn more about break-even point:
https://brainly.com/question/2846088
#SPJ4
Explain the limitations of statistics
what is the expected after-tax cash flow from selling a piece of equipment if xyz purchases the equipment today for $88,500.00, the tax rate is 20.00%, the equipment is sold in 3 years for $15,200.00, and macrs depreciation is used where the depreciation rates in years 1, 2, 3, and 4 are 40.00%, 35.00%, 20.00%, and 5.00%, respectively? $12,160 (plus or minus $10) $2,270 (plus or minus $10) $13,045 (plus or minus $10) $3,540 (plus or minus $10) none of the above is within $10 of the correct answer
The expected after-tax cash flow from selling a piece of equipment can be calculated using the given information. Here's the step-by-step explanation:
1. Calculate the depreciation for each year using the MACRS rates:
Year 1: $88,500 * 40% = $35,400
Year 2: $88,500 * 35% = $30,975
Year 3: $88,500 * 20% = $17,700
2. Calculate the remaining book value after 3 years:
Book value = Purchase price - (Year 1 depreciation + Year 2 depreciation + Year 3 depreciation)
Book value = $88,500 - ($35,400 + $30,975 + $17,700) = $4,425
3. Calculate the gain or loss on sale:
Gain on sale = Selling price - Remaining book value
Gain on sale = $15,200 - $4,425 = $10,775
4. Calculate the taxes on the gain:
Taxes = Gain on sale * Tax rate
Taxes = $10,775 * 20% = $2,155
5. Calculate the after-tax cash flow from selling the equipment:
After-tax cash flow = Selling price - Taxes
After-tax cash flow = $15,200 - $2,155 = $13,045
Your answer: The expected after-tax cash flow from selling the equipment is $13,045 (plus or minus $10).
Learn more about Cash Flow: https://brainly.com/question/10922478
#SPJ11
from 1981 to 2001, which change was most likely happening in the us economy? a decrease in spending by consumers an increase in the number of workers an increase in spending by consumers an increase in government intervention in the economy
Answer:
C
An increase in spending by consumers
Explanation:
From 1981 to 2001, The change that was most likely happening in the US economy is an increase in spending by consumers. Thus, option third is correct.
What is a kind of economy in U.S.?The United States has a mixed economy, which includes components of the command and market economic models. In terms of consumer products and corporate services, the US economy is a free market.
Although the US economy is currently one of the most stable in the world, consumer spending increased between 1981 and 2001. There are several economic systems in operation around the world. Socialism, communism, and capitalism are a few instances. The United States operates under a capitalist framework.
And in economics, when there is public spending, there is a positive impact in the economy. Therefore, it can be concluded that option third is correct.
Learn more about US economy here:
https://brainly.com/question/9296500
#SPJ6
Do you think percentage gains
would get more varied or less
varied if you added additional
mutual funds to your portfolio?
In what pricing strategy are prices lowered in a series of steps with the demand by those who really desire the product being satisfied at the highest prices?.
A price skimming strategy refers to when an e-commerce business charges the highest initial price that customers will pay, then lowers it over time. As demand from the first customers is satisfied and more competitors enter the market.
A skimming crime can be easy tax evasion: the owner of a business might also fail to "ring up" a transaction and pocket the coins, hence converting a patron's charge without delay to the proprietor's personal use with out accounting for the profit, thereby the proprietor avoids paying both commercial enterprise or non-public income taxes on it. A well-known example of this crime took place at Studio 54 discotheque,[1] which changed into compelled to close as a end result. Skimming at casinos is related to the investment of prepared crime.
Learn more about skimming here
https://brainly.com/question/27300377
#SPJ4
For the Bad News/Apology Message assignment, your task is to write a formal letter that either delivers bad news or makes an apology to an employee, a coworker, a boss/manager, a client/customer, an investor, or a vendor. Please choose one of the example scenarios listed below.
You should direct your letter to a specific recipient (a person, several people, or a business/organization), and it should be clear what happened (background), what the bad news or apology message is, and the reason(s) for delivering it.
You own a small business. An average-performing but loyal employee has asked for an increase in rank and salary. Write a letter tactfully denying their request. In addition to providing reasons for denying the request, offer the employee suggestions and encouragement that could help them attain this goal.
For the Bad News/Apology Message assignment, you need to write a formal letter denying an average-performing but loyal employee's request for a rank and salary increase. The letter should be tactful and provide reasons for denying the request, while also offering suggestions and encouragement for the employee to attain their goal.
Here is an example of how you can structure your letter:
1. Start with a polite and professional salutation, addressing the employee by their name.
2. Begin the letter by expressing appreciation for their loyalty and dedication to the company.
3. Explain that you have carefully considered their request for a rank and salary increase.
4. State the main reason(s) for denying the request, such as current company policies or budget constraints.
5. Offer suggestions and encouragement to help the employee achieve their goal, such as highlighting areas for improvement or suggesting professional development opportunities.
6. Reiterate your appreciation for their contributions and express confidence in their potential for growth.
7. Close the letter with a polite closing, such as "Sincerely" or "Best regards," and sign your name.
Learn more about Bad News from the given link
https://brainly.com/question/15110535
#SPJ11
what are two advantages of paying regular bills by direct debit?? :)
Answer:
It spreads the costs. Paying your regular bills or business outgoings by Direct Debit allows you to spread costs over a period that you agree with the organisation you are paying.
It's flexible.
Answer:Two advantages of paying regular bills by direct debit are:
1. Convenience: With direct debit, your bills are automatically paid from your account without you having to remember to make payments manually. This saves you time and hassle, as you don't have to worry about missing payments or remembering due dates.
2. Avoiding late fees: Direct debit ensures that your bills are paid on time, every time, which can help you avoid late fees and other penalties. This can be especially useful if you have a busy schedule and may forget to make payments on time.
Hi! Two advantages of paying regular bills by direct debit are:
1. Convenience: Direct debit automates the payment process, ensuring that your bills are paid on time without the need for manual intervention.
2. Budgeting: With regular and fixed payments, direct debit helps you better manage your finances by making it easier to plan your monthly expenses.
Which of the following is NOT an example of a metric
?
Answer:
can you tell me what the choices are and I'll answer in the comments
Explanation:
floor gang aooh sub to pewdiepie
Over five quarters, revenue generated by Alpha Enterprises was: 10, 14, 12, 16, 20. Using the exponential smoothing technique, calculate smoothed values for the 2nd, 3rd, 4th, and 5th quarters given that
a = 0.5: a. 12, 13, 14, 18
b. 12, 12, 14, 17
c. 12, 14, 16, 18
d. 12, 14, 16, 20
To calculate the smoothed values using exponential smoothing, we start with the first observed value and then apply the smoothing formula:
k
Smoothed Value = α * Current Value + (1 - α) * Previous Smoothed Value
Given the following revenue values: 10, 14, 12, 16, 20 and α = 0.5, we can calculate the smoothed values for the 2nd, 3rd, 4th, and 5th quarters as follows:
1st Quarter: Smoothed Value = 10 (Since it's the first observed value)
2nd Quarter: Smoothed Value = 0.5 * 14 + 0.5 * 10 = 12
3rd Quarter: Smoothed Value = 0.5 * 12 + 0.5 * 12 = 12
4th Quarter: Smoothed Value = 0.5 * 16 + 0.5 * 12 = 14
5th Quarter: Smoothed Value = 0.5 * 20 + 0.5 * 14 = 17
The smoothed values for the 2nd, 3rd, 4th, and 5th quarters are: 12, 12, 14, 17.
The correct answer is option b: 12, 12, 14, 17.
Learn more about smoothed values here:
https://brainly.com/question/16931886
#SPJ11
A furniture seller believes that people who have just moved are more likely to need new furniture. What targeting dimension should this furniture seller use for their ad campaign?.
Furniture campaign for new movers can be done in many ways the few are listed below. This is called marketing, the better marketing provides better sales.
What is Marketing?Marketing is the advertising of goods and or services, usually marketing department is provided with a good amount of budget which enhances the sales.
Campaigns can be presented near the estate agency so that the individuals purchasing the house can easily contact for furniture. Also the ad campaign may be embed with some new movers which will encourage the new movers to purchase new furniture from the company.
The taglines can be used as "New house new furniture". Or "No same boring furniture with the new house". "A complete unique range of furniture to turn your new home into a living heaven".
Learn more about Marketing at https://brainly.com/question/26958727
#SPJ1
what do you mean by Business Risk ??
Answer:
Business risk is the exposure a company or organization has to factor(s) that will lower its profits or lead it to fail. Anything that threatens a company's ability to achieve its financial goals is considered a business risk.
Explanation:
hope it is helpful for you keep smilingAnswer:
hi r u Korean
Explanation:
I love koreans
A few simple business questions, 50 points
Answer: Human resource Management
Explanation: In a buisness people wouldn't be able to mantain employess and recruit new ones without HRM.
In 2017, being "born global" is a must for fledgling businesses. Doing so is easier than you think, says Suranga Herath, CEO of English Tea Shop. onventional wisdom says that a business should get its domestic ducks in a row, before venturing overseas. But in the digital age, a new generation of businesses is making a strong case for nearly all new businesses to be "born global", that is, have an immediate focus on the international stage. The arguments for exporting are well known: it can increase the prestige of your brand and can allow you to tap into unexploited economies[1]. My argument is therefore: with all the benefits that going global offers...why wait...Why not be born global? Being born global is easier than you think Being born global may seem radical, but can be much, much simpler than many think. For me, being born global isn't necessarily about having offices and employees overseas, or prioritising the international side of things although it can be. In its purest sense, being born global is a mindset where businesses seek international opportunities from the very beginning. Cutting to the chase - how being born global accelerates growth The benefits of being born global can be profound - take my business English Tea Shop as an example. Launching in 2010, we set out creating a brand we knew would resonate with global audiences. Indeed, the UK didn't become a focus for us until 2012. While domestic sales now account for around a third of our UK business, an immediate international outlook allowed us to grow very rapidly. We're now in 50 markets around the world. In short, there's no way we would have achieved this kind of scale if we'd had a domestic-first approach. Should your business be born global? I believe almost any business could in some way be born global. But there are a number of factors to consider when asking whether it's right for your business. Language and cultural barriers, logistics, market knowledge, manpower are all very valid reasons why businesses refrain from going global. But to my mind, if managed practically, the potential challenges are completely outweighed by the potential gains. This is particularly true when you consider the direction the world is moving in - that is, by and large, closer together. In particular, developing markets are where businesses can find the fastest growth and if you're not international, you're not in the game. With that in mind, and from my own experience here are five insights to help a fledgling business be born global: However big or small, include an international element in your business plan. This will focus your mind on the opportunities that lie overseas. It may be the core of your strategy, or just something you'd like to explore in the future, but make sure it's there. Start - but don't stick - with what you know. Maybe you've spotted a niche in a certain market, maybe you speak a language, maybe you have relatives living overseas. In some cases it may be appropriate to start your international journey there. However, keep an open mind - there's a whole world of opportunity out there. Find the right balance. The optimum split between domestic and international differs from business to business. English Tea Shop started off being 100% international but we've now dialled it back to being about 70/30. We're entering new markets all the time and we think it's vital to maintain a sense of agility. Use external resources. Logistics providers, UKTI, small business media - there's a whole wealth of information out there to support and guide you from the very beginning. If there are any areas of expertise or practical knowledge you feel you're lacking, you can be sure help is there for those who ask for it. Be ready for the rush. If all goes to plan, your business will grow rapidly - and for this reason you should make sure you have a solid infrastructure in place if things suddenly explode.
Being "born global" is a mindset where businesses seek international opportunities from the very beginning. It is much, 3SPJmuch simpler than many think and can accelerate growth. It is a must for fledgling businesses in 2017.
The advantages of being born global can be profound. Being born global is a mindset where businesses seek international opportunities from the very beginning. In its purest sense, being born global is a mindset where businesses seek international opportunities from the very beginning. The benefits of being born global can be profound.
In particular, developing markets are where businesses can find the fastest growth. Language and cultural barriers, logistics, market knowledge, manpower are all very valid reasons why businesses refrain from going global.However, if managed practically, the potential challenges are completely outweighed by the potential gains. It is much, much simpler than many think and can accelerate growth. If you're not international, you're not in the game.
learn more about born global click the link
https://brainly.com/question/28318131?referrer=searchResults
#SPJ11
what kind of technology refers as local technology or indigenous technology ?
Answer:
Local technology refers to the technology which are used in our locality from the ancient time and are made of locally available materials for the welfare of local people.
Answer:
Local technology refers to the technology which are used in our locality from the ancient time and are made of locally available materials for the welfare of local people.
Explanation:
"making planning in itself is not sufficient."what is the requirement for the business to be successful.
Answer:
organization
Explanation:
if you are organized then you will have smoother and cleaner place to work in
Answer:
Do what you think, one day you will surely succeed.
What public works project was built to help with unemployment during the great depression?.
Answer: Im also taking this test and i believe the answer is Hoover Dam i might be wrong
Explanation: Hoover Dam
. Determine the monthly payments of principal and interest for a 20 year loan
e. Determine their total monthly payment, including homeowners' insurance and taxes
f. Determine whether the couple will qualify for the 20 year loan
g. Determine how much of the first payment on the loan is applies to the principal.
In order to determine the monthly payments of principal and interest for a 20-year loan, we can use the loan amount, interest rate, and loan term to calculate the amortized monthly payments.
e) By adding the monthly payments of principal and interest to the homeowners' insurance and property taxes, we can determine the total monthly payment.
f) By considering the couple's income, credit score, and debt-to-income ratio, we can evaluate whether they qualify for the 20-year loan.
g) With an amortization schedule and the loan details, we can determine the specific amount that applies to the principal in the first payment.
Read more about Interest rate.
https://brainly.com/question/28236069
#SPJ11
a company that uses a calendar year purchases an asset with a historical cost of $250,000, a residual value of $5,000 and an estimated life of 5 years. if the asset is acquired on september 30, 2016, the first-year depreciation under the straight-line method is:
Under the straight line method, the Depreciation rate is 20%
First-year Depreciation under the straight line method is $12,250.
Depreciation and amortization are computed on a straight line basis. It is the simplest method for calculating how much an item will depreciate over time and is often referred to as straight line depreciation.
The straight line basis is computed by dividing the difference between the cost of an item and its anticipated salvage value by the anticipated number of years of usage.
The regular distribution of an asset's depreciable amount over the course of its useful life is known as depreciation. The cost of an asset, or an amount used in its place, less its residual value, is the depreciable amount of that asset.
Learn more about Depreciation, here
https://brainly.com/question/15085226
#SPJ4
10 C What is the effect of education on employment?
The effect of education on Employment is that it increases the employment rate and reduces unemployment
Effect of Education on EmploymentWith proper education, individuals can get the skills needed to to employed as skilled labor and earn a decent amount of money as a salary.
Without education, most people become unemployed and at best even get a job that is not enough to take care of them.
Learn more about education here:
https://brainly.com/question/24289862
#SPJ1
identify what accounting is by selecting the correct statement. multiple choice question. accounting information is primarily used only at the end of a year when tax returns and financial statements are prepared. accounting is a system that identifies, records and communicates financial information. accounting information impacts internal users only.
The best alternative that accurately conveys the significance of accounting is "Accounting is a system that identifies, records, and transmits financial information."
The best way to define accounting is as the process of keeping financial records in accordance with the laws. Accounting is used to evaluate the figures and facts that are relevant to the organisation and to portray its financial position. Its breadth has grown in almost every commercial company. Accountants' labour is the foundation of today's financial markets. Business executives would lack the transparency they require to manage risks or plan initiatives without accounting, and investors would be unable to rely on up-to-date, accurate financial data.
To know more about Accounting ,visit:
https://brainly.com/question/30310030
#SPJ4
april has joined a team with members from the sales customers service and shipping and receiving departments which term best describes the team april joined
Answer:
A cross-functional team
Explanation:
A cross-functional team is composed of members with different skills, experiences, and backgrounds. In organizations, cross-functional teams will have members from various departments. The teams are formed to undertake projects that require input from different experts.
April has joined a cross-functional team. The team has members from many departments. Cross-functional are temporally and get dissolved when the project is complete.
Travis Collins has the following expected utility function, E(U): E(U(π)) = 100+0.4E(π) – 0.000001E(π) 2 where income (π) is measured in dollars. He expects the following income distribution: Table 2. Travis’s Income and Probability.
Probability Income
0.40 $100,000
0.30 $150,000
0.30 $200,000
i. What is the expected utility that Travis expects? ii. What is Travis’s certainty equivalent income? How is certainty equivalent interpreted in this context? iii. What is Travis’s risk premium associated with this income distribution? How do you interpret it?
A higher risk premium indicates that Travis has a lower tolerance for risk and requires more compensation for taking on uncertain income.
i. To calculate the expected utility, we multiply each income level by its corresponding probability and substitute it into the utility function. After performing the calculations, the expected utility that Travis expects is 120,400.
ii. Travis's certainty equivalent income is found by setting the expected utility equal to the utility function and solving for income. The certainty equivalent income is $150,000, which means Travis would be willing to accept this guaranteed income instead of taking the risk associated with the uncertain income distribution. It represents the value Travis places on having a certain income level.
iii. The risk premium is obtained by subtracting the certainty equivalent income from the expected value of income. In this case, the risk premium is $50,000. It represents the additional income Travis would demand to compensate for the risk he faces with the uncertain income distribution. A higher risk premium indicates a higher aversion to risk and the need for greater compensation for bearing uncertainty.
Learn more about Risk premium here:
brainly.com/question/32624379
#SPJ11
How would a consumer calculate the value of an Apple iPhone?
Answer:
Explanation:
Apple's value has been created through voluntary trade with customers; it has convinced its customers that its products are worth more than those of its competitors, and clearly their customers agree.” An immense amount of groundwork was done by people who came before Apple and Steve Jobs, all of whom Crotty credits.
The consumer are the large demand of to calculate the value of an Apple iPhone are the voluntary trade with the customer. The company are the more influenced the consumer.
What is consumer?
The term “consumer” means purchasing a product or service for the purpose of personal use. The consumer are consuming the product and services. The consumer are buying the product and services with exchange of money. The consumer are to switch to the substitutes goods.
The consumer was to use the mobiles was more like the Apple iPhone. The company was the direct sale to the consumer, The consumer demand because are the voluntary trade with customers. The company convinced the consumer the customers was the agreed.
As a result, the consumer calculate the value of an Apple iPhone are the convinced the consumer are the purchased the iPhone for the new features.
Learn more about on consumer, here:
https://brainly.com/question/27773546
#SPJ2
Why is the slow growth that can result from a contractionary policy a positive effect?
It can increase interest rates.
It can decrease available credit.
It can increase the money supply.
It can decrease inflation.
Answer: It can decrease inflation
Explanation:
A slow growth rate can result from the contractionary policy of a positive effect which can lead to a decrease in inflation. Thus option A is correct.
What is the contractionary policy?Contractionary policy forms a money measure that refers to the decrease of the govt spending and specially on the deficit expenses and the reduction in the rate of the monetary expansion by the central bank.
This policy can be understood by the government deposits of the US treasury which are fed by the deposit cash in order to apply the policy. The slow growth of policy can lead to the positive effect that tends to decrease inflation.
Find out more information about the contractionary policy.
brainly.com/question/9504329
your roommate is considering purchasing cryptocurrency, as they believe it can be used in place of money. what roles would cryptocurrency need to satisfy in order to be considered and effective type of money?
If your roommate is considering purchasing cryptocurrency, as they believe it can be used in place of money. The roles that cryptocurrency would need to satisfy in order to be considered and effective type of money is: Store of value.
What store of value?A store of value can be defined as the something of value that can be saved which inturn can help to add more value to someone after been exchanged. This implies that the assets store does not depreciate or wear out but instead it help to add value to the owner of it.
Example of store of value is money based on the fact that money has a store of value because it is an asset that a person can invest as well as store in the bank or financial institution
This money store can be retain it buying power power as it can be used to purchased or buy things in the future.
Therefore the correct option is C.
Learn more about store of value here:https://brainly.com/question/14329166
#SPJ1
The complete question is:
your roommate is considering purchasing cryptocurrency, as they believe it can be used in place of money. what roles would cryptocurrency need to satisfy in order to be considered and effective type of money?
backed by a commodity
have a physical presence
store of value
unit of account
medium of exchange
Why do Marketers segment a market?
Answer:
see below
Explanation:
Market segmentation is the practice of sub-dividing the target market into smaller groups. Market segmentation creates customer groups based on demographics, needs, priorities, and other common traits. Marketers use segmentation to understand the needs of target clients better.
Segmentation increases marketers' efficiency in resource utilization. It allows companies to learn about their customers and design tailor-made campaigns for a particular group. Targeting segments in marketing raises the possibility of more sales.
For example, if Mr. Farmer borrows $100,000 for one year—at a simple interest rate of 5%—he will pay 100,000 x 5% x 1, or $5000, to borrow the money for one year. Loans usually charge fees. Simple interest does not include these fees, so it will often not reflect the total cost of a loan. Simple interest also does not include the compounding effects of interest charged over time.
In the example provided, Mr. Farmer borrows $100,000 for one year with a simple interest rate of 5%. To calculate the interest he will pay for borrowing the money, we use the formula: Principal x Interest Rate x Time. In this case, it is 100,000 x 5% x 1, which equals $5,000. This means that Mr. Farmer will pay $5,000 in interest to borrow the money for one year.
It's important to note that simple interest does not include any additional fees that may be associated with loans, such as origination or service fees. These fees can increase the total cost of a loan, but they are not included in the simple interest calculation. As a result, simple interest may not accurately reflect the full cost of borrowing money.
Furthermore, simple interest does not take into account the compounding effects of interest charged over time. Compounding refers to the process of earning interest on both the principal and the previously earned interest, which can increase the total amount of interest paid on a loan.
Simple interest calculations only consider interest earned on the original principal amount, which can result in an underestimation of the total interest paid over time.
In summary, while simple interest provides a straightforward method for calculating the interest paid on a loan, it does not include additional fees or the compounding effects of interest over time. Consequently, it may not accurately represent the true cost of borrowing money.
To know more about simple interest rates refer here:
https://brainly.com/question/25845758#
#SPJ11
Select the correct answers from each drop-down menu. phillip purchased a machine for his business last year. it cost $50,000. the machine required a skilled operator, who was a worker earning $2,000 per month. how will phillip treat the cost of the machine and the wages of the skilled operator in his books of accounts? in his books of accounts, phillip will record the machine as a(n) and the wages paid to the skilled operator as a(n) .
Philip will treat the cost of machine as an asset, and the wages paid to the skilled operator will be treated as an expense.
What is the difference between an asset and an expense?An asset is referred to as such utility, whether tangible or intangible, which owned and controlled solely by a business organization in the normal course of business.
An expense, on the other hand, is regarded as the payments which are made for ensuring normal and smooth functioning of the business operations in a firm.
Some examples of assets are plant and machinery, goodwill, patents, land, building, and such others. While the examples of expenses include rent, salaries and wages.
Hence, the difference between an asset and an expense is given.
Learn more about assets and expenses here:
https://brainly.com/question/14301448
#SPJ1
Answer:
asset
expense
Explanation:
In 2011, it was estimated that 45 percent of Indians worked in the primary sector - mainly agriculture. Why was this sector least important of the three in terms of output?
Answer:
not sure i can really help sorry
It's It has licensed its product to Dairy Delight company who will manufacture and sell the It's it product and brand in another country. The license fee is $125,000 The royalty fees are 5% of gross annual revenues Dairy Delight's five year revenue forecasts are: Year 1$1,000,000 Year 2$1,250,000 Year 3$1,400,000 Year 4$1,420,000 Year 5$1,430,000 For a total 5 year revenue of $6.5M The gross margin of Dairy Delight is 35% Their marketing costs are 5% of sales per year. They sell the product for 85 cents and it costs them 18 cents to make. What will be It's It's revenue from this licensing arrangement over the 5 years? Your company has formed a Joint Venture with a manufacturing company in Narnia to make and sell your ice cream sandwich. There is a luxury ice cream market and consumers will pay a hefty $10 for your exquisite product at high end retailers. Those retailers will buy their inventory of the product from a master wholesaler at 70% of the market price (a 30% discount). The JV sells the product to the wholesale operation at a 60% discount from the market price. ( 40% of market price) The cost of making and packaging the product in your manufacturing facility is $1.00 How much money does the JV get for each product that is sold?
For the licensing arrangement with Dairy Delight, It's It will earn $5.9 million in revenue over 5 years. The Joint Venture in Narnia will receive $4 for each product sold.
For the licensing arrangement with Dairy Delight, It's It will earn royalty fees based on the gross annual revenues of Dairy Delight. The total revenue over the 5 years is $6.5 million. To calculate It's It's revenue, we need to find the gross margin and subtract marketing costs and the cost of goods sold.
The gross margin is 35% of the revenue, which amounts to $2.275 million. Marketing costs are 5% of sales per year, totaling $325,000 over 5 years. The cost of goods sold is the difference between the selling price (85 cents) and the cost of production (18 cents), which is 67 cents.
Therefore, It's It's revenue from the licensing arrangement over the 5 years is ($2.275 million - $325,000 - $0.67 million) * 5 = $5.9 million. As for the Joint Venture in Narnia, the JV will sell each product to the master wholesaler at a 60% discount from the market price, which is 40% of the market price. Given that the market price is $10, the JV will receive $10 * 40% = $4 for each product sold.
Learn more about licensing here:
https://brainly.com/question/17226036
#SPJ11