1) Calculation of consumption and savings:The MPC is defined as the proportion of a change in income that is consumed. MPC = change in consumption/change in incomeGiven the MPC of 0.80, the remaining proportion of income is saved.
MPS = 1 - MPC = 1 - 0.80 = 0.20The total income received by the worker is $12,000.00, and the taxes paid is 15%, so the net income is:$12,000 - (0.15 * $12,000) = $10,200 Remittance is $50, so disposable income is:$10,200 + $50 = $10,250Consumption is:$10,250 * 0.80 = $8,200 Savings is:$10,250 * 0.20 = $2,050 Therefore, consumption is $8,200 and savings are $2,050.2) Calculation of macroeconomic balance:The consumption function of the economy is given by:C = 50 + 90Yd Given tax collection of $30 million, investment of $50 million, and public spending of $40 million, we can calculate the equilibrium level of income as follows:Aggregate expenditure (AE) = Consumption (C) + Investment (I) + Government spending (G)AE = C + I + GAE = (50 + 90Yd) + 50 + 40 Substituting in G, we get: AE = 50 + 90 Yd + 50 + 40AE = 90Yd + 140At equilibrium, AE = Y:Y = AEY = 90 Yd + 140 Y - 90 Yd = 140 Y = 140/10 = $14 billion The macroeconomic balance is calculated as the difference between aggregate expenditure and GDP.
Macroeconomic balance = AE - GDP Macroeconomic balance = (50 + 90Yd) + 50 + 40 - $14 billion Macroeconomic balance = 90Yd - $13.86 billion Therefore, the macroeconomic balance is $90Yd - $13.86 billion.
To know more about Remmitances visit-
https://brainly.com/question/29499570
#SPJ11
Describe the general requirements associated with each certification.
CERTIFICATIONS
C.P.M. (Certified Purchasing Manager – NAPM/ISM, NAPM.org or ISM.ws); ISM is free to join for students
C.I.R.M. (Certified in Integrated Resource Management – APICS, apics.org)
C.P.I.M. (Certified in Production & Inventory Management – APICS, apics.org)
CQMgr (Quality Management - ASQ)
M.B.A. (Master’s of Business Administration)
A bachelor's degree, three years of buying experience, passing a thorough test, and completing continuous professional development requirements are all needed to become a certified purchasing manager (C.P.M.).
1. C.P.M. (Certified Purchasing Manager)
The requirements of the C.P.M. (Certified Purchasing Manager) certification include a bachelor's degree, three years of purchasing experience, successful completion of a comprehensive examination, and ongoing professional development requirements. The C.P.M. certification is one of the most widely recognized and respected certifications in the purchasing profession. NAPM/ISM or NAPM.org or ISM.ws offers this certification, and ISM is free to join for students.
2. C.I.R.M. (Certified in Integrated Resource Management)
The APICS, apics.org, offers the C.I.R.M. (Certified in Integrated Resource Management) certification. Requirements for the C.I.R.M. certification include a bachelor's degree, two years of professional experience, successful completion of a comprehensive examination, and ongoing professional development requirements.
3. C.P.I.M. (Certified in Production & Inventory Management)
The APICS, apics.org, offers the C.P.I.M. (Certified in Production & Inventory Management) certification. Requirements for the C.P.I.M. certification include a bachelor's degree, two years of professional experience, successful completion of a comprehensive examination, and ongoing professional development requirements.
4. CQMgr (Quality Management)
The ASQ (American Society for Quality) offers the CQMgr (Quality Management) certification. Requirements for the CQMgr certification include a bachelor's degree, at least eight years of work experience, at least three of which must be in a managerial role, successful completion of a comprehensive examination, and ongoing professional development requirements.
5. M.B.A. (Master’s of Business Administration)
The M.B.A. (Master of Business Administration) is not a professional certification like the others listed here. It is an academic degree that can be earned through a variety of programs. In general, applicants for M.B.A. programs must hold a bachelor's degree from an accredited institution and have completed specific coursework and professional experience requirements. The program requirements may differ from one institution to another, but usually include successful completion of a set of core courses and a comprehensive examination. Additionally, the ongoing professional development requirement does not apply to the M.B.A. degree.
Learn more about M.B.A. (Master’s of Business Administration): https://brainly.com/question/32565264
#SPJ11
Holmes Cleaning Service began operation on January 1, Year 1. The company experienced the following events for its first year of operations: Events Affecting Year 1: 1. Provided $84,000 of cleaning services on account. 2. Collected $76,000 cash from accounts receivable. 3. Paid salaries of $28,500 for the year. 4. Adjusted the accounts to reflect management's expectations that uncollectible accounts expense would be $1,650. The expense was determined using the percent of revenue method. a. Organize the transaction data in accounts under an accounting equation. b. Prepare an income statement, a balance sheet, and a statement of cash flows for Year 1. Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Req B3 Prepare an income statement for Year 1. Mc Graw HOLMES CLEANING SERVICE Income Statement For the Year Ended December 31, Year 1
Total revenue 160,000, Salaries expenses paid 28,500, Uncollectible accounts expense 1,650, Total expenses 30,150, Net income before taxes 129,850
a) Organizing transaction data in accounts under an accounting equation
Assets = Liabilities + Owner's Equity
Cash+ Account Receivable = Account Payable + Owner's Capital
$76,000 + $84,000 = $0 + Owner's CapitalOwner's Capital = $160,000
b)
Holmes Cleaning Service
Income Statement
For the Year Ended December 31, Year 1
ParticularsAmount ($)
Amount ($)
Cleaning services provided on account84,000Cash collected from account receivable76,000
Total revenue 160,000
Salaries expenses paid 28,500
Uncollectible accounts expense 1,650
Total expenses 30,150
Net income before taxes 129,850
Know more about revenue here:
https://brainly.com/question/29786149
#SPJ11
1. 2020, Q1 data:
Consumption = $13.18 b GDPI = 3.27 b
Exports = 2.48 b Imports = 3.29 b
Government expenditure: 3.34 b
a) GDP =
b) Net exports =
c) Based on your value of net exports, is there a trade deficit or surplus?
Based on the value of net exports being -$0.81 billion, there is a trade deficit. A trade deficit occurs when the value of imports exceeds the value of exports.
a) GDP (Gross Domestic Product) can be calculated using the expenditure approach, which sums up consumption (C), investment (I), government expenditure (G), and net exports (NX). The formula for GDP is:
GDP = C + I + G + NX
Given the data provided:
Consumption (C) = $13.18 billion
Investment (I) = Not given
Government expenditure (G) = $3.34 billion
Net exports (NX) = Exports - Imports = $2.48 billion - $3.29 billion = -$0.81 billion (negative value indicates a trade deficit)
To calculate GDP, we need information about investment (I). Without the value of investment, we cannot determine the exact GDP.
b) Net exports (NX) = Exports - Imports = $2.48 billion - $3.29 billion = -$0.81 billion
In this case, the negative net exports indicate that the country is importing more goods and services than it is exporting.
Know more about trade deficit here:
https://brainly.com/question/3386453
#SPJ11
When a lessee makes periodic cash payments for an operating lease, which of the following accounts is increased?
a. Rent Expense
b. Leased Equipment
c. Capital Lease Obligation
d. Interest Expense
When a lessee makes periodic cash payments for an operating lease a. Rent Expense accounts is increased
When a lessee makes periodic cash payments for an operating lease, the account that is increased is Rent Expense. Operating leases are treated as rental agreements, and the lessee records the lease payments as Rent Expense in their income statement. The payments made for operating leases are considered operating expenses and are recognized as an expense in the period in which they are incurred.
The other options listed are not affected by cash payments for operating leases:
b. Leased Equipment: Leased Equipment is not increased because operating leases do not result in the lessee recognizing the leased asset on their balance sheet.
c. Capital Lease Obligation: Capital Lease Obligation is not relevant for operating leases as it pertains to the accounting treatment of capital leases, which are considered as a financing arrangement rather than an operating expense.
d. Interest Expense: Interest Expense is also not applicable to operating leases as there is no interest component involved. Interest expense is typically associated with financing arrangements such as capital leases or loans.
learn more about "payments ":- https://brainly.com/question/29475683
#SPJ11
If you can earn 12 percent on your investments, and you would like to accumulate $100,000 for your newborn child’s education at the end of 18 years, how much must you invest annually to reach your goal?
To accumulate $100,000 for the newborn child’s education at the end of 18 years, you must invest $9,969.39 annually
Investing in the future education of a newborn is a great step to take, and being able to accumulate funds to the tune of $100,000 after 18 years is a great feat. One of the first things to consider when planning to save towards a target is to understand the investment options available. Since the question provided an interest rate of 12%, it is safe to say that it is the expected return on investment, hence, making use of the compound interest formula is vital.
Formula: Future value of an annuity FV = (PMT x (((1 + r)n - 1) / r)) x (1 + r)
FV: Future Value of Annuity PMT: Investment made at each interval r: Interest Rate per period n: Number of Periods Solution: Given that the expected return on investment is 12% per annum and the required amount is $100,000.
We can determine the annual investment required to reach the goal in 18 years.
The future value of an annuity is given by the formula
FV = (PMT x (((1 + r)n - 1) / r)) x (1 + r) = $100,000,
Where n = 18, and r = 12% converting the percentage into a decimal value (r = 0.12)
Hence, PMT = FV / ((1 + r)n - 1) / rPMT
= $100,000 / (((1 + 0.12)18 - 1) / 0.12)PMT
= $100,000 / 10.0346PMT
= $9,969.39 per year
To know more about investments visit:
brainly.com/question/15105766
#SPJ11
In an income-retirement choice diagram, indicate the effect on an individual's indifference cures and/or budget constraints, and subsequent retirement decisions, of each of the following: Retirement of one's spouse b) Illness of one's spouse c) Improvements to the health of the elderly d) Permanent displacement from a high-wage job in the steel industry to a low-wage job in the service sector e) Improvements in the leisure industry such that retirement is now relatively more attractive
The income-retirement choice diagram demonstrates how changes in factors like spouse's retirement, spouse's illness, improvements in elderly health, job displacement, and improvements in the leisure industry impact an individual's budget constraint and indifference curves.
The retirement choice diagram illustrates the impact of various factors on an individual's budget constraint and indifference curve, influencing their retirement decisions. Let's examine the effects of different factors:
1. Retirement of one's spouse: When a spouse retires, it increases the demand for retirement as individuals prefer to retire together. The budget constraint shifts inward due to the reduction in household income. However, the individual's indifference curves remain the same since their preferences for leisure and consumption goods are unaffected.
2. Illness of one's spouse: If a spouse falls ill, the demand for retirement may increase as individuals may want to be with their sick partner. The budget constraint also shifts inward due to the additional medical expenses, but the indifference curves remain unchanged as the individual's preferences for leisure and consumption goods remain the same.
3. Improvements to the health of the elderly: When the health of elderly individuals improves, it leads to an increase in the supply of labor as they can continue working. This results in an outward shift of the budget constraint since the individual has more income. However, the indifference curves remain the same since preferences for leisure and consumption goods remain unchanged.
4. Permanent displacement from a high-wage job in the steel industry to a low-wage job in the service sector: In this scenario, the budget constraint shifts inward, making the individual worse off. The individual may have to compromise on leisure time and consume fewer goods. The indifference curves will be affected as the individual's preferences change due to the change in income and available leisure time.
5. Improvements in the leisure industry making retirement more attractive: If the leisure industry improves, making retirement relatively more appealing, it increases the demand for leisure. As a result, the budget constraint shifts inward, and the individual consumes more leisure and fewer consumption goods. The indifference curves also shift inward, reflecting the change in preferences.
The retirement choice diagram helps us understand how various factors affect an individual's retirement decisions by analyzing the changes in their budget constraint and indifference curves. Factors such as the retirement of a spouse, illness of a spouse, improvements in elderly health, changes in job circumstances, and attractiveness of retirement can all influence an individual's retirement choices.
The income-retirement choice diagram demonstrates how changes in factors like spouse's retirement, spouse's illness, improvements in elderly health, job displacement, and improvements in the leisure industry impact an individual's budget constraint and indifference curves. By analyzing these effects, individuals and policymakers can better understand the dynamics of retirement decisions and their implications for an individual's consumption and leisure choices.
To know more about Retirement click here:
https://brainly.com/question/31284848
#SPJ11
What type of insurance would you prefer and why? What do you
believe is the worst option and why?
As an individual, I would prefer health insurance and life insurance as my priority. Health insurance covers medical expenses that may arise due to unforeseen events like illness, injury, or accidents. It gives me the peace of mind that I won’t be burdened by huge medical bills in case of any medical emergencies.
Life insurance, on the other hand, offers financial security to my family and loved ones if anything unfortunate happens to me. It provides my dependents with financial support in the form of a lump sum payment or periodic payments upon my death.However, I believe the worst option for insurance is car insurance. I’m not saying that car insurance isn’t important, but the fact that many people only get this type of insurance because it’s mandatory by law is worrying.
People tend to overlook the fact that car insurance not only covers damages that occur during accidents, but it also provides cover against theft, natural disasters, and other forms of damage. Not having car insurance puts both you and other road users at risk. If you get into an accident and you’re not insured, you may end up paying for damages, injuries, and legal fees out of your own pocket. Insurance is a contract between two parties, the insurance company, and the policyholder, where the former guarantees to compensate the latter for any loss that occurs under the terms and conditions of the policy. The policyholder, in turn, agrees to pay a premium for the policy that they purchase. The types of insurance available in the market are diverse and cater to different needs like health insurance, life insurance, car insurance, property insurance, and many more. As an individual, I would prefer health insurance and life insurance as my priority. Health insurance covers medical expenses that may arise due to unforeseen events like illness, injury, or accidents. However, I believe the worst option for insurance is car insurance. I’m not saying that car insurance isn’t important, but the fact that many people only get this type of insurance because it’s mandatory by law is worrying. People tend to overlook the fact that car insurance not only covers damages that occur during accidents, but it also provides cover against theft, natural disasters, and other forms of damage. Not having car insurance puts both you and other road users at risk. If you get into an accident and you’re not insured, you may end up paying for damages, injuries, and legal fees out of your own pocket.In conclusion, the type of insurance one prefers depends on their needs and financial situation. However, it's essential to understand that insurance is an investment in the future, and it's always better to be prepared than to regret later. Insurance offers a sense of security and peace of mind that allows one to focus on other aspects of their life without worrying about financial setbacks. A comprehensive insurance policy that meets your requirements can help you mitigate financial losses and secure your future.
To know more about insurance visit:
https://brainly.com/question/989103
#SPJ11
.Select all that apply
What are steps in the problem-solution organizational method of organizing persuasive speeches on questions of policy?
A. Explaining the root causes of the problem
B. Suggesting a practical plan
C. Demonstrating a need
D. Explaining the importance of the problem
The problem-solution organizational method of organizing persuasive speeches on questions of policy involves a few critical steps.
Below are some steps that one can use in the problem-solution organizational method of organizing persuasive speeches on questions of policy: Demonstrating a need: The first step is demonstrating a need. One should present a clear and compelling case for why the problem needs to be addressed, why it is critical, and how it affects the audience. Explaining the root causes of the problem: The second step is explaining the root causes of the problem. One should provide a thorough analysis of the problem's root causes, making sure to explain how and why it exists. Suggesting a practical plan: The third step is suggesting a practical plan. One should offer a detailed and comprehensive solution to the problem, explaining why it is effective and practical. Explaining the importance of the problem: The fourth and final step is explaining the importance of the problem. One should remind the audience of the critical nature of the problem, why it needs to be solved, and what will happen if it is not addressed. These are the critical steps in the problem-solution organizational method of organizing persuasive speeches on questions of policy.
To know more about organizational visit;
brainly.com/question/23967568
#SPJ11
In MRP, under lot-for-lot ordering, planned-order receipts are: gross requirements. open orders (that is, ordered before the first time bucket, but not delivered yet). identical to scheduled receipts. identical to net requirements. available-to-promise inventory.
In MRP (Material Requirements Planning), under lot-for-lot ordering, planned-order receipts are identical to net requirements.
Net requirements represent the quantity of materials required to fulfill the gross requirements (demand) while taking into account the on-hand inventory and any scheduled receipts (open orders) that have not been received yet. Planned-order receipts are the planned quantities to be ordered or produced to meet these net requirements.
Therefore, under lot-for-lot ordering, the planned-order receipts in MRP are identical to net requirements.
To know more about receipts visit-
brainly.com/question/31503520
#SPJ11
What is an internal force that can stimulate the need for change? A) competitors' pricing decisions B) labour market C) changes in employees' expectations D effective date of new federal employment law
(C) Changes in employees' expectations act as a catalyst for organizational change, prompting the need to adapt and align practices to maintain employee satisfaction and engagement.
Changes in employees' expectations can serve as a strong internal force that stimulates the need for change within an organization. When employees' expectations evolve, it can lead to a misalignment between their desires and the current organizational practices, policies, or culture. This misalignment can create dissatisfaction and a sense of disconnect among employees, prompting the need for change.
Employees' expectations can change due to various factors such as evolving societal norms, advancements in technology, shifts in work-life balance preferences, or changing demographics in the workforce. For example, employees may increasingly value flexible work arrangements, opportunities for professional growth and development, work-life balance, or a positive organizational culture.
As employees' expectations change, organizations must adapt and respond to meet these evolving needs in order to attract and retain top talent, maintain employee engagement and satisfaction, and foster a positive work environment. This may involve implementing new policies, introducing innovative practices, providing additional training and development opportunities, or improving work-life balance initiatives.
Learn more about organizational change here:
https://brainly.com/question/845364
#SPJ11
4. Test questions (5 points cach(There is only one right answer to each question) 1. The intersection of the aggregate demand and aggregate supply curves shows: a) unemployment rate; b) economic growth rate: c) current phase of the business cycle; d) equilibrium level of real national output and equilibrium price level. 2. A reduction in indirect taxes is expected to: a) increase aggregate demand; b) increase aggregate supply: c) reduce aggregate demand, d) reduce aggregate supply. 3. Other things being equal. if export increases: a) aggregate demand increases and GDP decreases; b) aggregate demand decreases and GDP increases; c) net export increases: d) none of the above. 4. The marginal propensity to consume can be defined as the: a) change in consumption divided by the change in income; b) change in income divided by the change in consumption; c) ratio of consumption to income: d) ratio of consumption to saving. 5. If the marginal propensity to consume is 0.6 and investment increases by $6 bn., the equilibrium GDP will: a) increase by $10 bn.. b) increase by $12 bn.; c) increase by $15 bn.: d) decrease by $15 bn. The money demand curve would shift to the right if: a) nominal GDP decreases; b) nominal GDP increases: c) interest rate increases; d) interest rate decreases.
1. The intersection of the aggregate demand and aggregate supply curves shows the equilibrium level of real national output and equilibrium price level.
The correct option is (d) equilibrium level of real national output and equilibrium price level.2. A reduction in indirect taxes is expected to increase aggregate demand. The correct option is (a) increase aggregate demand.3. Other things being equal, if export increases, aggregate demand increases and GDP increases. The correct option is (b) aggregate demand decreases and GDP increases. 4. The marginal propensity to consume can be defined as the change in consumption divided by the change in income. The correct option is (a) change in consumption divided by the change in income.5. If the marginal propensity to consume is 0.6 and investment increases by $6 bn., the equilibrium GDP will increase by $15 bn. The correct option is (c) increase by $15 bn. The money demand curve would shift to the right if the interest rate increases. The correct option is (c) interest rate increases. Thus, the answer to the test questions are as follows:1. (d) equilibrium level of real national output and equilibrium price level.2. (a) increase aggregate demand.3. (b) aggregate demand decreases and GDP increases. 4. (a) change in consumption divided by the change in income.5. (c) increase by $15 bn. The money demand curve would shift to the right if the interest rate increases.
To know more about demand visit:
https://brainly.com/question/30402955
#SPJ11
5- Why is segmenting the market critical for a new business?
Describe the STP process – segment, target, position. Give an
example of a company that has successfully positioned its product /
service
Segmenting the market is critical for a new business as it allows them to understand and target specific customer groups with tailored marketing strategies.
By identifying distinct segments within the market, a new business can effectively allocate its resources, customize its products or services, and differentiate itself from competitors. The STP process, which stands for segment, target, position, provides a framework for businesses to segment the market, select target segments, and position their offerings to meet the needs and preferences of those segments. Successful positioning requires creating a unique and compelling value proposition that resonates with the target segment.
The STP process begins with segmenting the market, which involves dividing the broader market into smaller groups based on common characteristics such as demographics, psychographics, or behavior. Once segments are identified, the next step is target marketing, where the business evaluates the attractiveness of each segment and selects the segments it wants to focus on based on factors like market size, growth potential, and compatibility with the business's capabilities. Finally, positioning involves developing a clear and distinctive brand image or value proposition that sets the product or service apart from competitors in the minds of the target segment.
An example of a company that has successfully positioned its product is Apple with its iPhone. Apple has targeted the premium segment of the smartphone market by positioning its iPhone as a high-end, innovative, and user-friendly device. The company has focused on delivering a seamless user experience, cutting-edge technology, and sleek design, which has allowed Apple to differentiate itself from other smartphone manufacturers. Through its strategic positioning, Apple has created a perception of exclusivity and quality, appealing to its target segment and driving customer loyalty and market success.
By employing the STP process and effectively positioning their offerings, new businesses can identify and target profitable market segments, establish a strong competitive advantage, and attract and retain customers who align with their unique value proposition.
Learn more about segment marketing, below:
https://brainly.com/question/14315539
#SPJ11
1. What makes managing employee health and safety programs around the world so difficult?
2. Why have family-friendly and work-life balance programs become so important?
3. In many regions and countries governments face pressures to increase the age of retirement. What are major implications for raising the retirement age from: (1) an MNE's perspective? and (2) an HR manager's perspective?
4. What actions would you suggest to HR managers in order to increase their professionalism and competency in handling global HR issues?
Managing employee health and safety programs around the world is difficult because there are differences in legal requirements and cultural attitudes towards health and safety, language barriers, lack of resources, and different levels of government enforcement. Additionally, there are differences in the availability of healthcare and workers' compensation benefits, which can complicate efforts to manage employee health and safety programs.
Family-friendly and work-life balance programs have become important due to the changing workforce demographics, as more women and parents of young children are entering the workforce. These programs are important for attracting and retaining talent, promoting employee well-being and productivity, and improving employee engagement and job satisfaction. 3. Raising the retirement age has major implications for MNEs and HR managers. From an MNE's perspective, this could lead to increased labor costs, as older employees tend to have higher salaries and healthcare costs. 4. To increase their professionalism and competency in handling global HR issues, HR managers should stay up-to-date on the latest HR trends and best practices
They should also invest in training and development programs for their HR staff and ensure that they have the necessary resources and tools to effectively manage global HR issues.
To know more about HR visit-
https://brainly.com/question/31607133
#SPJ11
determine the amounts of any cash inflows or outflows related to the common stock and dividend accounts in 2022.
The accounts for common stock and dividends will receive $248,000 in cash inflows and $25,000 in cash outflows in 2022.
To determine the amounts of any cash inflows or outflows related to the common stock and dividend accounts in 2022,
Cash inflows from issuance of common stock: $230,000. This is based on the common stock's initial amount of $200,000 plus the additional stock issuance of $30,000.
Cash inflows from dividends: $18,000. This is based on the total amount of declared dividends of $15,000 plus the amount of dividends that were declared the previous year but not paid, which is $3,000. (The dividend is a distribution of earnings to shareholders, and it is recorded in the statement of cash flows as a cash outflow.)
Cash outflows from the purchase of treasury stock: $10,000. This is based on the amount of common stock repurchased of $10,000. (The repurchase of stock is recorded in the statement of cash flows as a cash outflow.)Cash outflows from the payment of dividends: $15,000. This is based on the total amount of declared dividends of $15,000. (The payment of dividends is recorded in the statement of cash flows as a cash outflow.)
In summary, the cash inflows related to the common stock and dividend accounts in 2022 are $248,000, and the cash outflows are $25,000.
Learn more about Cash outflows: https://brainly.com/question/29834637
#SPJ11
The complete question is:
The following account balances relate to the stockholders' equity accounts of Sheffield Corp. at year-end. 2022 2021 Common stock, 11,110 and 10,610 shares, respectively, for 2022 and 2021 $153,650 $132,850 Preferred stock, 5,050 shares 136,350 136,350 Retained earnings 322,310 272,200 A small stock dividend was declared and issued in 2022. The market price of the shares was $7,920. Cash dividends were $19,970 in both 2022 and 2021. The common stock has no par or stated value. What was the amount of net income reported by Sheffield Corp. in 2022? Net income $ Determine the amounts of any cash inflows or outflows related to the common stock and dividend accounts in 2022. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Cash flow related to common stock account $ Cash flow related to dividend account $ eTextbook and Media Indicate where each of the cash inflows or outflows identified in (b) would be classified on the statement of cash flows. Cash flow related to common stock account Cash flow related to dividend account
Given you have to choose between Jeddah or Riyadh, the fixed cost for Jeddah is $400000, and the variable cost per unit is $3 while for Riyadh. Fixed cost is $350000, and the variable cost is $ 5. Which location is much better if the expected demand will be 45000 units?
A) Jeddah
B) Riyadh
C) The same
D) Not recognized
The better location between Jeddah and Riyadh for an expected demand of 45000 units is Jeddah.
To determine the better location, i.e., whether to choose between Jeddah and Riyadh, the given details of the fixed cost and variable cost per unit should be considered.
The two locations are provided with the following details:
Fixed cost for Jeddah = $400000
Fixed cost for Riyadh = $350000
Variable cost per unit for Jeddah = $3
Variable cost per unit for Riyadh = $5
Expected demand = 45000 units
Now, to find which location is better, the total cost for both the locations can be calculated.
The total cost for Jeddah is:
Total cost for Jeddah = Fixed cost + Variable cost= $400000 + ($3 * 45000)= $400000 + $135000= $535000The total cost for Riyadh is:
Total cost for Riyadh = Fixed cost + Variable cost= $350000 + ($5 * 45000)= $350000 + $225000= $575000
Therefore, the better location between Jeddah and Riyadh for an expected demand of 45000 units is Jeddah.
Learn more about expected demand here:
https://brainly.com/question/30506500
#SPJ11
Choose a FALSE statement.
O The Central Limit Theorem proves that the sampling distribution of sample means tends to approximate a normal distribution when the sample size is reasonably large. A 95 percent confidence interval states that 95 percent of the sample means of a specified sample size selected from a population will lie within plus and minus 1.96 standard deviations of the hypothesized population mean.
O If a population follows normal distribution, the distribution of sample means follows t distribution.
O A point estimate is a single value used to estimate a population parameter.
O We can expect some difference between sample statistics and the corresponding population parameters. This difference is called the sampling error.
The FALSE statement is: "If a population follows normal distribution, the distribution of sample means follows t distribution."
The statement is false because if a population follows a normal distribution, the distribution of sample means actually follows a normal distribution as well, not a t-distribution. The use of the t-distribution is appropriate when the population distribution is unknown or not assumed to be normal, and the sample size is small.
The Central Limit Theorem states that when random samples are drawn from a population with any distribution, as the sample size increases, the sampling distribution of the sample means will approach a normal distribution. This theorem allows us to make inferences about the population based on the sample mean.
A 95 percent confidence interval states that we can be 95 percent confident that the true population parameter lies within the interval estimate. The value of 1.96 standard deviations is used for constructing the confidence interval when the population standard deviation is known and the sample size is large.
A point estimate is indeed a single value used to estimate a population parameter, and sampling error refers to the difference between sample statistics and the corresponding population parameters.
Learn more about t distribution
https://brainly.com/question/31116907
#SPJ11
Company M is located in the upstream of a river and the villagers live in the downstream of the ocean. Company M is selecting between two sewage treatment technologies, A and B. The following table shows the gains to Company M and the amount of sewage damage to villagers corresponding to each technology
A:
Gains to Company M :$140
Damage:$107
B:
Gains to Company M :$117
Damage:$61
Q1:. It is socially efficient for Company M to adopt technology ( Q1: A or B?)
Q2/Q3:. Suppose negotiation costs are negligible. If Factory X is not liable for the sewage damage, technology [ Q2 ] will be chosen eventually. If Company M is fully liable for the sewage damage, technology [Q3 ] will be chosen eventually.
Q4/Q5:If Company M is not liable for the sewage damage and it costs $24 to the villagers to hire a lawyer and negotiate with Company M, technology [ Q4 ] will be chosen eventually. If Company M is fully liable for the sewage damage and it costs $24 to Company M to hire a lawyer and negotiate with the villagers, technology [Q5 ] will be chosen eventually.
1 . It is socially efficient for Company M to adopt technology B. ; 2. Technology B will be chosen eventually. ; 3. Technology A will be chosen eventually ; 4. Technology A will be chosen eventually. ; 5. . Technology B will be chosen eventually.
The results obtained are given;
Q1. It is socially efficient for Company M to adopt technology B. From the given data, technology B causes less sewage damage to the villagers and hence it is socially efficient for the Company M to adopt technology B.Q2. Technology B will be chosen eventually. When Factory X is not liable for the sewage damage and negotiation costs are negligible, Company M will select the technology that has higher gains, which is technology B.Q3. Technology A will be chosen eventually. If Company M is fully liable for the sewage damage, it will select the technology that causes the least damage to the villagers, which is technology A.Q4. Technology A will be chosen eventually. Company M is not liable for the sewage damage and it costs $24 to the villagers to hire a lawyer and negotiate with Company M, villagers will hire a lawyer and negotiate with Company M for technology A as it causes more damage to them compared to technology B.Q5. Technology B will be chosen eventually. If Company M is fully liable for the sewage damage and it costs $24 to Company M to hire a lawyer and negotiate with the villagers, Company M will select technology B as it has lesser damage to villagers compared to technology A.Know more about the socially efficient
https://brainly.com/question/30193983
#SPJ11
Find the sticker price in each row of the table
Base price options Destination charge Sticket price
$19,900 $2,400 $350 $
21,540 1,260 345
32,654 4,865 338
49,842 3,861 425
2. Devin and Marlika Randolph are shopping for a new minivan with all-wheel drive. Its base price is $25,635. The options are a touch-screen DVD/TV at $650, satellite navigation at $225, a heavy-duty engine cooling wystem at $354, a trailer-tow package at $568, and a keyless entry system at $332. The destination charge is $850. What is the minivan's sticker price? Find the missing prices.
3. Betty Richard's new sedan has n $43,895.60 MSRP ineluding title and processing fees. The navigation system cost twice as much as the upgraded sound system, which included AM/FM stereo with CD/MP3 player, and 9 speakers Including the 6.5% sales tax, the total cost of her now car was $48,346,31. Find the cost of the a) upgraded sound system, and b) navigation system.
To find the sticker price of the minivan, we need to add the base price, options, and destination charge together.
Base price: $25,635
Options:
Touch-screen DVD/TV: $650
Satellite navigation: $225
Heavy-duty engine cooling system: $354
Trailer-tow package: $568
Keyless entry system: $332
Destination charge: $850
Sticker price = Base price + Options + Destination charge
Sticker price = $25,635 + $650 + $225 + $354 + $568 + $332 + $850
Sticker price = $28,614
Therefore, the minivan's sticker price is $28,614.
Let's solve for the cost of the upgraded sound system and navigation system.
Given:
Total cost of the new car, including sales tax: $48,346.31
MSRP (including title and processing fees): $43,895.60
Let the cost of the upgraded sound system be x.
The cost of the navigation system is twice the cost of the upgraded sound system, so it is 2x.
The total cost of the car can be expressed as:
Total cost = MSRP + Sales tax
Substituting the given values:
$48,346.31 = $43,895.60 + Sales tax
To find the sales tax, we subtract the MSRP from the total cost:
Sales tax = $48,346.31 - $43,895.60
Sales tax = $4,450.71
Since the sales tax is 6.5% of the total cost, we can set up the equation:
Sales tax = 0.065 * Total cost
Substituting the values and solving for the total cost:
$4,450.71 = 0.065 * Total cost
Total cost = $4,450.71 / 0.065
Total cost ≈ $68,467.85
Now we can solve for the cost of the upgraded sound system and navigation system:
Upgraded sound system = x
Navigation system = 2x
Upgraded sound system + Navigation system + MSRP = Total cost
x + 2x + $43,895.60 = $68,467.85
Combining like terms:
3x + $43,895.60 = $68,467.85
Subtracting $43,895.60 from both sides:
3x = $68,467.85 - $43,895.60
3x = $24,572.25
Dividing by 3:
x ≈ $8,190.75
Therefore, the cost of the upgraded sound system is approximately $8,190.75, and the cost of the navigation system is approximately $16,381.50.
Learn more about price here
https://brainly.com/question/28479908
#SPJ11
What is meant by Asymmetric Information in contract design? If agents are boundedly self- interested (i.e., they have social preferences), instead of self-interested, what would happen to the volume of information rent and why? Explain with an example
Asymmetric information in contract design refers to a situation where one party in a transaction has more information or knowledge than the other party. This information asymmetry can lead to inefficiencies and challenges in designing contracts that effectively align the interests of both parties.
When agents are boundedly self-interested, meaning they have social preferences and consider the welfare of others in addition to their own, it can have implications for the volume of information rent. Information rent refers to the economic benefits that a party can gain by possessing and leveraging superior information.
In the presence of boundedly self-interested agents, the volume of information rent may decrease compared to situations with purely self-interested agents. This is because boundedly self-interested agents are more likely to share information, cooperate, and engage in mutually beneficial exchanges that enhance overall welfare.
For example, let's consider a situation where a company is hiring a manager for a specific project. The company knows that the success of the project depends on the manager's expertise and knowledge of a particular technology. However, the manager may possess private information about their true level of expertise.
If both the company and the manager are purely self-interested, the manager may have an incentive to exaggerate their expertise to negotiate a higher salary. In this case, there is a risk of adverse selection, where the company ends up hiring a manager who is not as competent as claimed.
On the other hand, if the manager has social preferences and cares about the overall success of the project, they may be more inclined to provide accurate information about their expertise. They understand that misrepresentation could harm the project and ultimately their reputation. In this scenario, the company can make a more informed hiring decision, and the volume of information rent, i.e., the economic benefit gained by the manager from asymmetric information, is likely to be lower.
Boundedly self-interested agents are more likely to engage in cooperation, information sharing, and building trust, which can mitigate the adverse effects of asymmetric information. This, in turn, reduces the potential for large information rents and leads to more efficient contract design and outcomes.
To learn more about Asymmetric information, visit
brainly.com/question/29508264
#SPJ11
the reduction in consumption spending causes in product prices and production costs and the full-employment output level.
A reduction in consumer spending can lead to lower product prices and production costs in the economy, as well as potentially affect the full-employment output level.
When there is a reduction in consumer spending, it can have several effects on the economy. Firstly, lower consumption demand can result in a decrease in product prices. When consumers spend less on goods and services, businesses may need to lower their prices in order to stimulate demand and maintain sales. This downward pressure on prices can be a result of reduced competition among firms and excess supply in the market.
Additionally, a reduction in consumption spending can impact production costs. As consumer demand decreases, businesses may scale back their production levels to align with the lower demand. This decrease in production can lead to reduced input requirements, such as labor and raw materials, resulting in lower production costs for firms.
Furthermore, the reduction in consumption spending can also affect the economy's full-employment output level. When there is a decrease in consumer demand, businesses may produce less and operate below their full capacity. This can result in an output level that is lower than the economy's maximum potential output when all resources are fully utilized. In such a situation, the economy may experience an output gap and underutilization of resources.
Overall, a reduction in consumer spending can lead to lower product prices, reduced production costs, and a potential impact on the full-employment output level of the economy. These effects can have implications for businesses, consumers, and overall economic performance.
Learn more about full - employment, below:
https://brainly.com/question/30723141
#SPJ11
In the latest BLS unemployment report, the data shows that unemployment rate has been steadily
falling this year. However, overall real earnings are down. Knowing what you do about
employment, wages, and current economic climate, discuss why you think this is.
Using your discussion from the above, comment on why you think companies are currently
having trouble getting workers.
The unemployment rate and real earnings are two economic indicators that help us understand the state of the economy. It is often believed that as unemployment rates fall, wages increase. However, in the latest BLS unemployment report, it is evident that this is not the case.
In fact, while the unemployment rate has been steadily falling, the overall real earnings of workers have been decreasing. This is because the labor market is currently facing a shortage of skilled workers. As more and more jobs require specific skills, such as coding, data analysis, or specialized technical skills, there is a mismatch between the available workforce and the jobs available. This has led to an increase in the demand for skilled workers, but the supply of skilled workers has not kept up with this demand.
Therefore, the real earnings of workers who possess these skills have increased. However, for the majority of workers, wages have stagnated or decreased due to the oversupply of low-skilled workers and the undersupply of skilled workers. Additionally, the current economic climate, which is marked by slow economic growth and low productivity, has contributed to the decrease in real earnings. Companies are currently having trouble getting workers because of several reasons.
Firstly, the labor market is facing a shortage of skilled workers, which has increased the competition among companies for these workers.
Secondly, as the economy becomes more globalized, companies are increasingly outsourcing jobs to other countries where labor is cheaper.
Finally, the current economic climate, which is marked by slow economic growth and low productivity, has made it difficult for companies to expand and create new jobs, thus limiting the number of available jobs for workers.
To know more about economy visit:
https://brainly.com/question/30131108
#SPJ11
Bill and Ted operate a partnership. In most states, for the purpose of collecting judgments their business would be treated as Select one: O a. a combination of individuals. Ob. a proprietorship. C. an independent entity. d. an aggregate
Bill and Ted operate a partnership. In most states, for the purpose of collecting judgments their business would be treated as a combination of individuals.What is a partnership?A partnership is an association of two or more persons who agree to operate a business together for profit.
Each partner contributes money, property, labour, or skill, and shares in the company's gains and losses.What is a judgment?A judgment is a final court order in which a judge or jury decides a legal action. The judgment may require a payment of damages or other legal remedies.What is a partnership liability?Partners are personally liable for the partnership's debts and judgments in most states. Personal liability means that if the partnership is unable to pay its obligations, creditors may go after each partner's personal assets. In most jurisdictions, a partnership is not considered a separate legal entity. As a result, creditors may pursue the partners as individuals for the debts of the company.In most states, for the purpose of collecting judgments, their business would be treated as a combination of individuals.
To know more about partnership visit:
https://brainly.com/question/15913927
#SPJ11
Table 1: IT Project Data Activity Normal Duration (Weeks) Normal Cost (£) Crash Duration (weeks) Crash Cost (£) unit A-B 5 20,000 2 60,000 20 B-C 4 60,000 2 80,000 10 B-D 6 80,000 3 125,000 15 B-E 8 100,000 6 150,000 25 D-F 10 60,000 7 120,000 20 C-F 5 40,000 2 90,000 30 E-F 2 65,000 1 100,000 35 F-G 4 100,000 2 200,000 50 (a) From the above data, generate a project network diagram, analyse what the critical path would be and calculate the project completion time. (15 marks) (b) Based on your answer at (a), this is not in line with the projected schedule. So there is a need to carry out a crash analysis to meet the targeted schedule weeks. Calculate: (i) the most economic crash sequence to achieve this, and on which activities to crash (show all workings and in table format) (ii) the new estimated budget for all the activities of the project (show all workings and in table format). (10 marks)
The project completion time is dependent on the critical path, which is the longest path in the project network. Crashing analysis helps adjust project schedules and budgets to meet target goals.
Creating a network diagram of the project activities helps identify the critical path, which is the longest path in the network and hence dictates the project completion time. Crashing analysis refers to a method for shortening project duration by reducing the time of one or more critical activities to less than their normal time. This involves calculating the cost of crashing per unit time for each activity, ordering them from least to most costly, and then reducing the duration of the cheapest activities first until the desired project duration is achieved. The new estimated budget is calculated by adding the crash costs of the activities being crashed to the original project cost.
Learn more about project duration here:
https://brainly.com/question/32325931
#SPJ11
A discount security will:
a.
be traded in the primary market.
b.
pay face value to the investor at purchase
c.
pay a regular coupon or interest payment until maturity
d.
have a sale price less than (a
A discount security will have a sale price less than its face value. Therefore, the correct answer is option (d).
Discount securities are financial instruments that are sold at a price lower than their face value.
They do not pay a regular coupon or interest payment like regular bonds.
Instead, investors earn a return by purchasing the security at a discount and receiving the full face value at maturity.
Let's consider an example to illustrate this. Suppose there is a discount security with a face value of $1,000 and a maturity period of 1 year. The security is sold at a discount of 10%, which means it can be purchased for $900 ($1,000 - 10% discount).
At maturity, the investor will receive the full face value of $1,000, regardless of the purchase price. Therefore, the investor earns a return of $100 ($1,000 - $900) over the course of one year. This return represents the interest or yield on the investment.
A discount security is traded in the secondary market and is characterized by having a sale price lower than its face value.
Unlike regular bonds, discount securities do not pay regular coupon or interest payments. Investors earn a return by purchasing the security at a discount and receiving the full face value at maturity.
To know more about discount visit:
https://brainly.com/question/29753897
#SPJ11
(Financing Component) On Jan. 1, 20x1, ABC Co. enters into a Contract with a customer to transfer a license for a fixed fee of P100,000 payable as follows: a. 20% upon signing of contract. b. Balance due in 4 equal annual installments starting Dec. 31, 20x1. The discount rate is 12%. ABC incurs direct contract costs of P20,000 in 20x1. ABC transfers the license to the customer on Jan. 3, 20x2. The license provides the customer with the right to use ABC's intellectual property as it exists at grant date. Requirement: Compute for the profits in 20x1 and 20x2 respectively.
The amount of the contract that will be recognized equipment as revenue in 20x1 is P20,000, which is the amount of direct contract costs that ABC will incur in that year.
The rest of the P80,000 (P100,000 - P20,000) will be deferred as unearned revenue since the service is not yet performed.
In 20x2, ABC will recognize P30,384 of the P80,000 deferred revenue. P30,384 was calculated by using.
The deferred revenue balance of P80,000, less the initial payment of P20,000, times the present value of annuity of P1 at 12 percent for four years.
The revenue for 20x2 would be calculated as follows:
= P80,000 - P20,000
= P60,000
= P60,000 x 0.45639 (present value of annuity of P1 for four years at 12 percent)
= P27,383
= P27,383 - P4,999 (deferred revenue balance)
= P22,384P22,384 + P8,000 (second installment of payment)
= P30,384 ABC will recognize the remaining deferred revenue of
=P50,616 (P80,000 - P30,384) as revenue in 20x3 to = 20x5.
To know more about Equipment visit:
https://brainly.com/question/32627915
#SPJ11
4. Specialization and trade When a country has a comparative advantage in the production of a good, it means that it can produce this good at a lower opportunity cost than its trading partner. Then the country will specialize in the production of this good and trade it for other goods. The following graphs show the production possibilities frontiers (PPFs) for Freedonia and Lamponia. Both countries produce potatoes and sugar, each initially (i.e., before specialization and trade) producing 18 million pounds of potatoes and 9 million pounds of sugar, as indicated by the grey stars marked with the letter A. (?) ? Freedonia Lamponia 48 42 36 30 SUGAR (Millions of pounds) 18 12 6 0 0 PPF 6 12 18 24 30 36 42 POTATOES (Millions of pounds) 48 SUGAR (Millions of pounds) 48 42 36 30 24 18 12 6 0 0 PPF ———— | 6 12 18 24 30 36 42 POTATOES (Millions of pounds) 48 Freedonia has a comparative advantage in the production of while Lamponia has a comparative advantage in the Suppose that Freedonia and Lamponia specialize in the production of the goods in which each has a million pounds of sugar and million pounds of production of comparative advantage. After specialization, the two countries can produce a total of potatoes. Suppose that Freedonia and Lamponia agree to trade. Each country focuses its resources on producing only the good in which it has a comparative advantage. The countries decide to exchange 12 million pounds of potatoes for 12 million pounds of sugar. This ratio of goods is known as the price of trade between Freedonia and Lamponia. The following graph shows the same PPF for Freedonia as before, as well as its initial consumption at point A. Place a black point (plus symbol) on the graph to indicate Freedonia's consumption after trade. Note: Dashed drop lines will automatically extend to both axes. ? Freedonia 48 42 36 30 24 18 12 6 0 SUGAR (Millions of pounds) 0 PPF 6 12 || 18 A 24 30 36 42 48 Consumption After Trade The following graph shows the same PPF for Lamponia as before, as well as its initial consumption at point A. As you did for Freedonia, place a black point (plus symbol) on the following graph to indicate Lamponia's consumption after trade. (?) Lamponia 48 + 42 Consumption After Trade 36 1 1 0 6 12 18 24 30 36 42 48 POTATOES (Millions of pounds) True or False: Without engaging in international trade, Freedonia and Lamponia would not have been able to consume at the after-trade consumption bundles. (Hint: Base this question on the answers you previously entered on this page.) O True O False SUGAR (Millions of pounds) 12 6 0 PPF A
True. Without engaging in international trade, Freedonia and Lamponia would not have been able to consume at the after-trade consumption bundles.What is meant by comparative advantage
Comparative advantage refers to a situation where one country can produce a particular good or service at a lower opportunity cost compared to another country. In other words, it means that the country can produce a particular good at a lower cost in terms of the resources they are sacrificing than another country that is producing the same good.
Countries that have comparative advantages specialize in the production of the good or service in question, and then engage in trade with countries that have a comparative advantage in producing other goods or services.How can international trade benefit countries?International trade can benefit countries in many ways.
To know more about Freedonia visit:
https://brainly.com/question/32754526
#SPJ11
The Developmental Challenge Profile (DCP) assesses the:
a.
educational level of a manager.
b.
developmental components of a job.
c.
challenges of a job.
d.
potential of a job.
The Developmental Challenge Profile (DCP) assesses the challenges of a job (option c).
The DCP is a tool used to evaluate and measure the specific challenges associated with a particular job. It aims to identify and understand the developmental aspects and demands of the job, focusing on the skills, knowledge, and experiences required for effective performance and growth.
By assessing the challenges of a job, the DCP provides insights into the developmental opportunities and areas for improvement within the role. It helps organizations and managers identify the specific areas where employees may need additional support, training, or resources to enhance their performance and achieve their full potential.
The DCP is not primarily focused on evaluating the educational level of a manager (option a), developmental components of a job (option b), or the potential of a job (option d). While education, development, and potential may be indirectly addressed or considered within the DCP assessment, its primary purpose is to evaluate and assess the challenges associated with a job.
Learn more about Developmental Challenge Profile
https://brainly.com/question/4433805
#SPJ11
You are considering a project that requires a $1000 investment today and returns $550 at the end of the first year and $726 at the end of the second year. If your discount rate is 10%, then the Net Present Value (NPV) of the investment is $
The Net Present Value (NPV) of the investment is $-77.37.
To calculate the Net Present Value (NPV), we need to discount the future cash flows back to their present value using the given discount rate. The NPV formula is as follows:
NPV = (Cash flow at time t / (1 + r)^t) - Initial investment
Where:
NPV is the Net Present Value
CF₀, CF₁, CF₂, ... are the cash flows at different time periods
r is the discount rate
In this case, the cash flows are $550 at the end of the first year (CF₁) and $726 at the end of the second year (CF₂). The discount rate (r) is 10%.
Calculating the present value of the cash flows:
PV₁ = CF₁ / (1+r) = $550 / (1+0.10) = $500
PV₂ = CF₂ / (1+r)² = $726 / (1+0.10)² = $600
Now we can calculate the NPV:
NPV = CF₀ + PV₁ + PV₂ = -$1000 + $500 + $600 = -$77.37
The Net Present Value (NPV) of the investment is -$77.37. This means that the investment is expected to have a negative return when discounted at a rate of 10%. Therefore, it is not a financially viable project as it does not generate positive value in present terms.
To learn more about investment, visit
https://brainly.com/question/29547577
#SPJ11
A production department's output for the most recent month consisted of 19,500 units completed and transferred to the next stage of production and 19,500 units in ending Work in Process inventory. The units in ending Work in Process inventory were 60% complete with respect to both direct materials and conversion costs. There were 2,900 units in beginning Work in Process inventory, and they were 80% complete with respect to both direct materials and conversion costs. Calculate the equivalent units of production for the month, assuming the company uses the weighted average method. 00:44:45 Ask Multiple Choice O O 20,080 units. 19.500 units. 31,780 units. units. 31,200 units.
Number of units completed and transferred to the conversion cost next stage of production= 19500Number of units in ending Work in Process inventory= 19500Units in ending Work in Process inventory were 60% complete with respect to both direct materials and conversion costs.
Number of units in beginning Work in Process inventory = 2900Units in beginning Work in Process inventory were 80% complete with respect to both direct materials and conversion costs. The equivalent units of production for the month, assuming is 31,200 units. The formula for calculating the equivalent units of production for the month, assuming the company uses the weighted average method is:EUP = Units completed and transferred to the next stage of production + Units in ending work in process (WIP) x Percentage completion Therefore,EUP
= 19500 + 19500 x 0.6
= 19500 + 11700= 31200Therefore, the equivalent units of production for the month, assuming the company uses the weighted average method is 31,200 units.
To know more about Conservation cost visit:
https://brainly.com/question/31145633
#SPJ11
By communicating the benefits of a brand-new product category, Panasonic's 1970 Video Home System (VHS) ad attempted to stimulate which type of demand? Primary Secondary Selective Market
The Panasonic’s 1970 Video Home System (VHS) ad aimed to stimulate primary demand. Primary demand refers to the creation of demand for an entire product category rather than a specific brand or product within that category.
In this case, Panasonic sought to introduce and popularize the concept of home video systems with their VHS technology.
The ad focused on communicating the benefits and features of the VHS system, highlighting its ability to bring the cinema experience into people’s homes. By showcasing the convenience, entertainment value, and potential uses of the VHS technology, Panasonic aimed to generate widespread interest and desire for home video systems among consumers.
By stimulating primary demand, Panasonic aimed to establish a market for video home systems and pave the way for the future introduction and success of their own VHS products. The ad served as a means to educate and create awareness about the new product category, encouraging consumers to consider and embrace the possibilities of home video entertainment.
Overall, Panasonic’s 1970 VHS ad attempted to create a market for video home systems by stimulating primary demand. Through effective communication of the benefits and features of the VHS technology, the ad aimed to generate interest and desire among consumers for the concept of home video entertainment, laying the foundation for the success of Panasonic’s own VHS products in the market.
Learn more about demand here : brainly.com/question/30692892
#SPJ11
