Bob operates Bob's Pizza, a small pizzeria that sells about 50 pizzas a day. Bob's daily total fixed costs are $100, and his daily total variable costs are $600. If for some reason Bob's fixed cost increased to $150, then his: Select one:

Answers

Answer 1

Available options are:

A. All of the choices are correct.

B. Average fixed costs would increase.

C. Marginal costs would increase.

D. Average variable costs would increase

Answer:

Option B. Average fixed costs would increase.

Explanation:

As the variable cost is the same which means that the marginal cost (All variable costs) would neither increase nor the average variable cost (Average variable cost due to fluctuating variable cost) would increase. Hence both Option C and D are incorrect.

Option B is correct because:

Average Fixed cost = (Initial Value + Value Now) / 2

Average Fixed cost = ($100 + $150) / 2 = $125

This means that the average cost has been increased.


Related Questions

Budget performance report for a cost center GHT Tech Inc. sells electronics over the Internet. The Consumer Products Division is organized as a cost center. The budget for the Consumer Products Division for the month ended January 31 is as follows: Customer service salaries $546,840 Insurance and property taxes 114,660 Distribution salaries 872,340 Marketing salaries 1,028,370 Engineer salaries 836,850 Warehouse wages 586,110 Equipment depreciation 183,792 Total $4,168,962 During January, the costs incurred in the Consumer Products Division were as follows: Customer service salaries $602,350 Insurance and property taxes 110,240 Distribution salaries 861,200 Marketing salaries 1,085,230 Engineer salaries 820,008 Warehouse wages 562,632 Equipment depreciation 183,610 Total $4,225,270
1. Prepare a budget performance report for the director of the Consumer Products Division for the month of January. If an amount box does not require an entry, leave it blank GHT Tech Inc. Budget Performance Report-Director, Consumer Products Division For the Month Ended January 31 Actual Budget Over Budget Under Budget Customer service salaries $ Insurance and property taxes Distribution salaries Marketing salaries Engineer salaries Warehouse wages Equipment depreciation Total
2. For which costs might the director be expected to request supplemental reports?
1. Customer service salaries and marketing salaries as they are significantly over budget.
2. Customer service salaries, warehouse wages and marketing salaries as they have significantly changed.
3. Engineering salaries and warehouse wages as they are significantly under budget.

Answers

Answer:

A.Actual $4,225,270

Budget $ 4,168,962

Over budget $112,370

Under budget $56,062

B. The director be expected to request supplemental request for Customer service salaries, warehouse wages and marketing salaries as they have significantly changed.

Explanation:

Preparation of the budget performance report for the director of the Consumer Products Division for the month of January.

GHT Tech Inc.

Budget Performance Report for Director, Consumer Products Division For the month ended January 31

Actual Budget Over budget Under budget

Customer Service Salaries $ 602,350 $ 546,840 $ 55,510 Over budget

Insurance and Property Taxes

110,240 114,660 $ 4,420 Under budget

Distribution Salaries 861,200 872,340 11,140 Under budget

Marketing Salaries 1,085,230 1,028,370 56,860 Over budget

Engineer Salaries 820,008 836,850 16,842 Under budget

Warehouse Wages 562,632 586,110 23,478 Under budget

Equipment Depreciation 183,610 183,792 182 Under budget

Totals

Actual $4,225,270

Budget $ 4,168,962

Over budget $112,370

Under budget $56,062

2. The director be expected to request supplemental reports for Customer service salaries, warehouse wages and marketing salaries as they have significantly changed.

Company had 200 units of inventory on hand at the end of the year. These were recorded at a cost of $12 each using the last-in, first-out (LIFO) method. The current replacement cost is $10 per unit. The selling price charged by Sandra Company for each finished product is $15. In order to record the adjusting entry needed under the lower-of-cost-or-market rule, the Cost of Goods Sold will be:

Answers

Answer:

Debited by $400

Explanation:

Calculation for the Cost of Goods Sold

Using this formula

Cost of Goods Sold= Inventory on hand*(Cost-Current replacement cost)

Let plug in the formula

Cost of Goods Sold=200 units * ($12 - $10)

Cost of Goods Sold= 200 units*2

Cost of Goods Sold = $400 Debited

Therefore the Cost of Goods Sold will be:$400 Debited

Keith and his team,employees of an online retailing company,are being trained on cyber surveillance and user security.As part of their training,they are working to identify a solution to the problem of cyber-phishing and data breaches.Which of the following forms of group-building methods is being employed by Keith's team?A) Cross-learningB) Action learningC) Adventure learningD) Virtual realityE) Behavior modeling

Answers

Answer: Action learning

Explanation:

From the question, we are informed that Keith and his team, employees of an online retailing company, are being trained on cyber surveillance and user security and as part of their training, they are working to identify a solution to the problem of cyber-phishing and data breaches.

The method used is action learning. This means that the group will get an actual problem, solve it, plan and the results will be shown to the team and the organization.

Hayduke Corporation reported the following results from the sale of 5,000 units in May: sales $300,000, variable costs $180,000, fixed costs $90,000, and net income $30,000. Assume that Hayduke increases the selling price by 5% on June 1. How many units will have to be sold in June to maintain the same level of net income?

Answers

Answer:

4,444.44 units

Explanation:

For the computation of Number of units to be sold to earn target profit first we need to follow some steps which are shown below:-

Selling price per unit = Sales ÷ Number of units sold

= $300,000 ÷ 5,000

= $60

Variable cost per unit = Total variable cost ÷ Number of units sold

= $180,000 ÷ 5,000

= $36

Increase in selling price = $60 × 5%

= $3

New selling price per unit = $60 + $3

= $63

New contribution margin per unit = New selling price per unit - Variable cost per unit

= $63 - $36

= $27

Number of units to be sold to earn target profit = (Fixed cost + Target profit) ÷ Contribution margin per unit

= ($90,000 + $30,000) ÷ $27

= $120,000 ÷ $27

= 4,444.44 units

On January 15, 2021, Bella Vista Company enters into a contract to build custom equipment for ABC Carpet Company. The contract specifies a delivery date of March 1. The equipment was delivered on March 31. The contract requires full payment of $75,000 30 days after delivery. The revenue for this contract should be recorded on

Answers

Answer:

31 March 2021

Explanation:

The contract should be recorded on 31 March 2021 because according to the US Generally Accepted Accounting Principles, revenue should be recognize in the book only when service has been rendered to the customer, the selling price of product is fixed and confirmation of service arrangement and amount to be collected.

With regards to the above scenario, since the equipment was not delivered until 31 March, then 31 of March will be recognized.

On October 29, 2016, Lobo Co. began operations by purchasing razors for resale. Lobo uses the perpetual inventory method. The razors have a 90-day warranty that requires the company to replace any nonworking razor. When a razor is returned, the company discards it and mails a new one from Merchandise Inventory to the customer. The company’s cost per new razor is $20 and its retail selling price is $75 in both 2016 and 2017. The manufacturer has advised the company to expect warranty costs to equal 8% of dollar sales. The following transactions and events occurred.
2016
Nov. 11 Sold 105 razors for $7,875 cash.
30 Recognized warranty expense related to November sales with an adjusting entry.
Dec. 9 Replaced 15 razors that were returned under the warranty.
16 Sold 220 razors for $16,500 cash.
29 Replaced 30 razors that were returned under the warranty.
31 Recognized warranty expense related to December sales with an adjusting entry.
2017
Jan. 5 Sold 150 razors for $11,250 cash.
17 Replaced 50 razors that were returned under the warranty.
31 Recognized warranty expense related to January sales with an adjusting entry.
1.1 Prepare journal entries to record above transactions and adjustments for 2016.
2. How much warranty expense is reported for November 2016 and for December 2016?
Warranty Expense for November 2016 ?????
Warranty expense for December 2016 ?????
3. How much warranty expense is reported for January 2017?
4. What is the balance of the Estimated Warranty Liability account as of December 31, 2016?
5. What is the balance of the Estimated Warranty Liability account as of January 31, 2017?

Answers

Answer:

Nov 11

Dr Cash 7,875

Cr To Sale 7,875

Nov. 11

Dr Cost of Goods Sold 2,100

Cr To Inventory 2,100

Nov. 30

Dr Warranty Expenses 630

Cr To Warranty Liability 630

Dec. 9

Dr Warranty Liability 300

Cr To Inventory 300

Dec. 16

Dr Cash 16,500

Cr To Sales 16,500

Dec. 16

Dr Cost of Goods Sold 4,400

Cr To Inventory 4,400

Dec. 29

Dr Warranty Liability 600

Cr To Inventory 600

Dec. 31

Dr Warranty Expenses 1,320

Cr To Warranty Liability 1,320

1.b Journal Entries for 2017

Jan 5

Dr Cash 11,250

Cr To Sales 11,250

Jan 5

Dr Cost of goods sold 3,000

Cr To Inventory 3,000

Jan 17

Dr Warranty Liability 1,000

Cr To Inventory 1,000

Jan 31

Dr Warranty Expenses 900

Cr To Warranty Liability 900

2)a. Warranty Expenses= $630

2b. Warranty Expenses= $1,320

3). Warranty Expenses= $900

4). Estimated Warranty Liability Account $1,050

5). Estimated Warranty liability account $900

Explanation:

Preparation of the Journal entries for Lobo Co

Journal Entries for 2016 for Lobo Co

Nov 11

Dr Cash 7,875

Cr To Sale 7,875

Nov. 11

Dr Cost of Goods Sold 2,100

Cr To Inventory (20*$105) 2,100

Nov. 30

Dr Warranty Expenses 630

($7,875*8%)

Cr To Warranty Liability 630

Dec. 9

Dr Warranty Liability 300

(15*$20)

Cr To Inventory 300

Dec. 16

Dr Cash 16,500

Cr To Sales 16,500

Dec. 16

Dr Cost of Goods Sold 4,400

Cr To Inventory 4,400

(220 * $20)

Dec. 29

Dr Warranty Liability 600

(30*$20)

Cr To Inventory 600

Dec. 31

Dr Warranty Expenses 1,320

($16,500*8%)

Cr To Warranty Liability 1,320

1.b Journal Entries for 2017

Jan 5

Dr Cash 11,250

Cr To Sales 11,250

Jan 5

Dr Cost of goods sold 3,000

(150*$15)

Cr To Inventory 3,000

Jan 17

Dr Warranty Liability 1,000

(50*$20)

Cr To Inventory 1,000

Jan 31

Dr Warranty Expenses 900

(11,250*8%)

Cr To Warranty Liability 900

2)a. Warranty Expenses for Nov. 2016

Warranty Expenses= $7,875*8%

Warranty Expenses= $630

2b. Warranty Expenses for Dec. 2016

Warranty Expenses= $16500*8%

Warranty Expenses= $1,320

3). Warranty Expenses for Jan. 2017

Warranty Expenses= $11,250*8%

Warranty Expenses= $900

4). Estimated Warranty Liability Account as on Dec. 31, 2016

Estimated Warranty Liability Account= $630 + $1,320 - $300 - $600

Estimated Warranty Liability Account= $1950- $900

Estimated Warranty Liability Account= $1,050

5). Estimated Warranty liability account as on Jan. 31, 2017

Estimated Warranty liability account = $1,050 + $900 - $1,050

Estimated Warranty liability account= $900

How much must be deposited at the beginning of each year to accumulate to $10,000 in four years if interest is at 9%

Answers

Answer:

Annual deposit= $2,186.69

Explanation:

Giving the following information:

Future value= $10,000

Number of peridos= 4 years

Interest rate= 9% compounded annually

To calculate the annual deposit required, we need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

Isolating A:

A= (FV*i)/{[(1+i)^n]-1}

A= (10,000*0.09) / [(1.09^4) - 1]

A= $2,186.69

By using bootstrap marketing strategies (unconventional, low-cost, creative techniques) small companies can get as much "bang" for their marketing bucks as their larger rivals.

Answers

Answer:

The given statement relates to bootstrap marketing strategies

Explanation:

In simple words, Bootstrap marketing relates to an advertising strategy usually used by entrepreneurs to create a business from the bottom up with little but private money and, luckily, money from the very first sale.

 This method is usually used by start ups for capturing initial market share and with the expertise of an angel investor they can really go for high goals.

​Harley-Davidson disciples share a​ common, deeply held attraction to the brand. Harley appeals​ include: freedom,​ independence, power, and authenticity.​ Harley-Davidson doesn't just sell motorcycles. It sells​ self-expression, lifestyles,​ aspirations, and dreams. This illustrates​ core customer values

Answers

Answer: Brand personality

Explanation:

Brand personality is what the customers can easily relate to about a particular brand. To develop and maintain a strong brand, having a brand personality is vital.

From the question, we are informed that Harley appeals​ include freedom,​ independence, power, and authenticity and that Harley-Davidson doesn't just sell motorcycles, it sells​ self-expression, lifestyles,​ aspirations, and dreams. This illustrates brand personality.

True, its illustrated Core Customer Value.

Core customer values refers to the perception of what a product or service of a company is worth to a customer against the effort of buying such product.

These values are what attracts customers to a product or a firm.

Question sometime asked by customer that what do i gain from this product despite being costlier? The Core values the customer got from the product or firm keeps the attraction.

In conclusion, the values are displayed effectively by product or firms in other to persuade new customer as well as to attract existing customers.

Learn more about Core customer values here

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The owners of Spokes Bicycle Shop worry that cash flow this winter may be insufficient to meet the current operating expenses. While they anticipate a surplus of cash inflow as warm weather approaches, they need funds now to meet the company's immediate obligations. The owners can best resolve cash flow concerns by obtaining ________ financing.

Answers

Answer:

Short-term.

Explanation:

Short-term can be explained to be financing of business for short period of time from different sources. This financing are seen to be in the periods of a year and is said to be for smaller scale businesses.

It is easily necessary to secure additional funds to cover expenses, especially for those smaller businesses or to take the next step in growing the business. These short term loans are seen to be a lending option that work for many businesses that experience seasonal revenue fluctuations, and are easily taken back from the enterprise on a daily basis or monthly to cover up for the year.

A donor gave $75,000 to a nongovernmental, not-for-profit charity with instructions that the funds be transferred to Sam Smith, an individual who lost his home in a fire. The not-for-profit would:

Answers

Answer:

B) Record the $75,000 cash and credit a liability

Explanation:

Possible options:

A) Record the $75,000 cash and credit temporarily restricted revenue. B) Record the $75,000 cash and credit a liability C) Do either (a) or (b), depending upon the policy of the not-for-profit D) Not record the transaction.

Non-for-profit charities must record all cash donations, but since the funds were donated for an specific purpose, their use is restricted. Therefore, the charity must record a liability (which has a normal credit balance).

Links Cable Network has decided to offer a one-hour appointment window for customers needing installation or repair of its service, which will require the company to have several technicians on call. Links hopes this practice will give it an advantage over the competition, none of which have adopted such a practice. Links Cable Network is introducing a(n) ______ change.

Answers

Answer:

Radically innovative.

Explanation:

In this scenario, Links Cable Network has decided to offer a one-hour appointment window for customers needing installation or repair of its service, which will require the company to have several technicians on call. Links hopes this practice will give it an advantage over the competition, none of which have adopted such a practice. Links Cable Network is introducing a radically innovative change.

A radically innovative change is a strategic business approach aimed at developing the business drastically.

Suppose that initially the price is $20 in a perfectly competitive market. Firms are making zero economic profits. Then the market demand shrinks permanently, some firms leave the industry, and the industry returns to a long-run equilibrium. What will be the new equilibrium price, assuming cost conditions in the industry remain constant

Answers

Answer:

$20

Explanation:

A perfect competition is characterised by many buyers and sellers of homogeneous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.  

In the long run, firms earn zero economic profit.  If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.  

Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.  

demand falls and so does supply. therefore price would remain unchanged in the long run equilibrium.

All of the following are reasons that the statement of cash flows is useful to the analyst except: A. The statement of cash flows shows how cash is generated during an accounting period and how it has been used. B. A positive net income figure on the income statement is ultimately insignificant unless a company can translate its earnings into cash, and the only source in financial statements for learning about cash generation is the statement of cash flows. C. The statement of cash flows shows the adjustments made to net income in order to calculate cash flow from operations; those should be examined to determine why cash flow from operations is negative or positive. D. The statement of cash flows is the only financial statement that cannot be manipulated.

Answers

Answer: The statement of cash flows is the only financial statement that cannot be manipulated

Explanation:

The cash flow statement is used to know how much cash is coming into and going out of a business.

The statement of cash flows shows the adjustments that can be made to the net income to calculate cash flow from operations.

The assumption that the statement of cash flows is the only financial statement that cannot be manipulated is wrong.

The statement of cash flows is the only financial statement that cannot be manipulated is not reason that the statement of cash flows is useful to the analyst.

Cash flow statements are important for all investors, which makes financial analysts increase the inflow of cash flow so that it looks good for investors and becomes confident in the business.  

Therefore, cash flow is essential in providing cash availability its inflow and outflow to accountants as well as analysts that is further used for developing income statements.

Learn more about cash flow statements here:

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The discount rate assigned to an individual project should be based on: Group of answer choices the firm's weighted average cost of capital. the actual sources of funding used for the project. the current risk level of the overall firm. the actual sources of funding used for the project. the estimated riskiness associated with the individual project.

Answers

Answer:

none of the choices are correct

Explanation:

When the discount rate assigned for an individual project then it should be based on the risk i.e attached to the fund use needed by the project

There were various cases when a risky firm invested in a less risky project also if the same cost of capital is used so the firm could alter the decision of an investment in a negative manner

Therefore none of the choices are correct

Land is purchased for $256,000. Additional costs include a $15,300 fee to a broker, a survey fee of $2,400, $1,750 to construct a fence, and a legal fee of $8,500. What is the cost of the land

Answers

Answer:

The answer is $282,200

Explanation:

The cost of an asset includes the purchase price (cost of acquisition) and the cost neccessary to bring it usage.

For example, for cost of acquiring a machinery, the purchase price minus any trade discount plus cost of transportation, plus any tax paid on acquisition plus cost of installation etc.

But for the acquisition of land, all the cost except the cost of fence of the land will be considered.

So we have:

Purchase price. $256,000

Broker's fee. $15,300

Survey fee. $2,400

Legal fee $8,500

Cost of the land. $282,200

Joan, who has a PhD in economics, has been employed as an agent by Gibraltar Securities for the past 15 years. Missing academic life, she resigns from the broker-dealer and accepts a position as an economics professor at a state university. Which, if any party, is required to notify the state securities Administrator of this change

Answers

Answer:

both the agent in question as well as the former broker/dealer are required to notify the Administrator promptly.

Explanation:

In the specific scenario that is being described both the agent in question as well as the former broker/dealer are required to notify the Administrator promptly. This is mainly due to the fact that the license that an agent possesses expires as soon as they cease to be employed by the broker/dealer and/or issuer for whom they were previously licensed. Therefore this information needs to be presented immediately to the securities administrator and her license needs to be revoked.

Tech giant, TimeHop was concerned about creating a workspace that was inviting and encouraged collaboration. Knowing that most of its employees would work odd hours, there was care taken to lighting choices and types of furniture. TimeHop was concerned with

Answers

Answer:

physical design

Explanation:

TimeHop was concerned about creating a workspace that was inviting and encouraged collaboration and here TimeHop was concerned with physical design because the reason for this is the the firm tailored their work space to the needs of employees thus being concerned with physical designso answer is physical design

Danton, a popular performer, dies. His spouse Caitlin sells their house to Buck. Unknown to Caitlin or Buck, in one of the closets is the master recording of an unreleased album. With respect to this recording, Buck can

Answers

Answer:

not keep it because there was no voluntary consent to its sale.

Explanation:

In this situation, Buck can not keep the unreleased album because there was no voluntary consent to its sale. When Danton died, all of his belongings became Caitlin's property. Since she did not know about the album or even that it was in the house when selling the house to Buck, she never agreed to transfer ownership of the album to Buck. Therefore, the album still belongs to Caitlin and Buck must return it.

"Jobs Now is an employment website. Like its competitors, it offers free listings in every category, which is free for job seekers but not for companies. This feature of Jobs Now is an example of"

Answers

Answer:

A revenue model

Explanation:

A revenue model is a business organizational framework and strategy  for balancing a business expenditure and income generation per revenue stream outlined by the business by identification of the veritable revenue sources, the structure of the pricing for the access to the value derived from the revenue source, as well as how customers are to pay for the value of the services of the revenue source

In essence, a revenue model maps value to buyers of a given valuable product.

Describe the role of securities markets and of investment bankers: what role do investment bankers playing securities markets

Answers

Answer

Explanation:

investment bankers specialize in the provision of new securities and they

provide helps to those that want their security liquified.

However, investment bankers are known with their role of provision of money at capital market to their customers such as companies or government set up through issuing of money or equity for security market.

Cash sales are normally 25% of total sales and all credit sales are expected to be collected in the month following the date of sale. The total amount of cash expected to be received from customers in September is:

Answers

Answer:

The total amount of cash expected to be received from customers in September is the sum of 25% of the September sales plus 75% of the August sales.

Explanation:

Suppose there are 1000 firms in a market and all are identical. Firm A will hire 20 workers when the wage rate is $10, 25 workers when the wage rate is $9, and 30 workers when the wage rate is $8. The equilibrium wage rate for a number of years has been $9. If the wage rate falls to $8, we know that

Answers

Answer:

d. the quantity demanded for the market will increase to less than 30,000 workers.

Explanation:

Missing options:

a. the quantity demanded for the market will increase to 30,000 workers. b. the quantity demanded for the market will increase to more than 30,000 workers. c. the quantity demanded for the market will increase, but we can't tell which of the above answers is correct. d. the quantity demanded for the market will increase to less than 30,000 workers.

maximum total demand for labor = 30 (at $8) x 1,000 firms = 30,000 workers, but since the equilibrium rate had been $9 for many years, some workers have already been hired at $9, and it is usually very difficult to lower someone's wage once they have been working. Even thought the quantity demanded will increase, it will probably not be able to reach 30,000 workers.

Rovinsky Corporation, a company that produces and sells a single product, has provided its contribution format income statement for November. Sales (7,300 units) $ 350,400 Variable expenses 204,400 Contribution margin 146,000 Fixed expenses 103,500 Net operating income $ 42,500 If the company sells 7,200 units, its net operating income should be closest to:

Answers

Answer:

Net operating income= 40,500

Explanation:

Giving the following information:

Contribution margin 146,000

Fixed expenses 103,500

Sales= 7,200

First, we need to calculate the unitary contribution margin:

Unitary contribution margin= 146,000/7,300= $20

Now, for 7,200:

Total contribution margin= 7,200*20= 144,000

Fixed costs= (103,500)

Net operating income= 40,500

Jose Suarez has been hired as sales manager at a new firm and is trying to come up with a sales force compensation method. He would like to have selling expenses relate directly to sales resources, an aggressive sales force, and minimization of non-selling tasks. What compensation method(s) would best fulfill his requirements

Answers

Answer:

straight commission

Explanation:

Straight commission refers to the commission in which only a sales percentage could be given in terms of commission no extra payment, no salary is given. The percentage could be based on the performance of the salesperson i.e how much sales he sold so according to that the percentage is given

Therefore the given situation represents the straight commission method

At Groovy Rags, a trendy retail store, manager Eon Forcer doesn't waste any time thinking about whether the employees on his shift get their breaks at a reasonable time. In fact, he claims he is hard pressed to determine which one has "worked hard enough" to even deserve a break. Earlier today, Eon remarked, "I've never met one that likes this job! They're only biding their time and here for the money." Eon's managerial style would be classified as _______.

Answers

Answer:

Theory X.

Explanation:

In this scenario, Groovy Rags, a trendy retail store, manager Eon Forcer doesn't waste any time thinking about whether the employees on his shift get their breaks at a reasonable time. In fact, he claims he is hard pressed to determine which one has "worked hard enough" to even deserve a break. Earlier today, Eon remarked, "I've never met one that likes this job! They're only biding their time and here for the money." Eon's managerial style would be classified as Theory X.

Douglas McGregor developed the theory x and y in the 1950s while working at the MIT Sloan school of management.

Theory X suggests that employees working in a particular organization dislike work, possess minimal ambition, and are generally not willing to take up responsibility.

Hence, with the Theory X it is very important and essential that these employees be supervised and rewarded externally with prizes and punishment should be used when they err.

Carfax offers a report on used cars for $39.99. It details the ownership type and history, vehicle mileage, accident reports, and other information. Carfax is an example of how markets try to:

Answers

Answer:

lessen the lemons problem by reducing asymmetric information.

Explanation:

Since in the question it is mentioned that the Carfax offered a report on a cars that are used for $39.99. The information involves type of ownership, history, vehicle mileage, accident reports, and other type of information

Based on the above information, the markets lowered the lemon problem i.e. asymmetric information that represents the failure of information

College dorm residents frequently want to keep and prepare their own food and snacks to save money or have a late-night snack. However, their dorm rooms are often woefully short of space. MicroFridge understands this and markets a combination microwave, refrigerator, freezer, smoke sensor, and charging station appliance targeted to these students. MicroFridge is most likely using which basis of segmentation

Answers

Answer:

behavioral segmentation

Explanation:

Based on this scenario, it can be said that MicroFridge is using behavioral segmentation. This is a form of marketing segmentation that focuses on dividing individuals into different groups based on their specific behavioral patterns that they share in common. Which in this case is the fact that the students tend to keep and prepare their own food and snacks to save money.  By targeting individuals with these behaviors they are more likely to sell their product due to its unique features that become beneficial to individuals exhibiting these behaviors.

Claire Nevsky is in charge of advertising for her company and has produced a 30-second television spot to promote one of the company's new products. One of her assistants just out of college believes that the commercial has too much visual and audio information packed into such a small amount of time. The assistant is specifically concerned about limits in the receiver's

Answers

Answer:

Channel capacity

Explanation:

The channel capacity is the rate in which the data and information could be converted through a channel of communication

Here, in the given question as it is mentioned that the commercial includes more visual and audio information that to be converted into a less amount of time so this determines the channel capacity for the limits

On January 1, 2017, Ann Price loaned $157773 to Joe Kiger. A zero-interest-bearing note (face amount, $210000) was exchanged solely for cash; no other rights or privileges were exchanged. The note is to be repaid on December 31, 2019. The prevailing rate of interest for a loan of this type is 10%. The present value of $210000 at 10% for three years is $157773. What amount of interest income should Ms. Price recognize in 2017

Answers

Answer:

15,777

Explanation:

Given the following :

Amount loaned = $157,7723

Prevailing Interest rate on such loan = 10%

Recognizable interest:

Amount loaned * Interest rate

$157,773 * 10%

157,773 * 10

15,777.3

= 15,777( to the nearest thousand)

Therefore, the amount of income Ms. Price will recognize in 2017 is $15,777.

Other Questions
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