Fruit Fly, Night Ryder, WholeMart is the three stocks by their total risk level, highest to lowest. Night Ryder has an average return of 9 percent. Hence, option A is correct.
What is standard deviation?The term "standard deviation" (or "") refers to a measurement of the data's dispersion from the mean. A low standard deviation implies that the data are grouped around the mean, whereas a large standard deviation shows that the data are more dispersed.
Example: How many people had scores on a recent test that were lower than yours, which was 0.5 standard deviations above the mean? 19.1% falls between 0 and 0.5. 50% is less than zero.
A low standard deviation indicates that the data are tightly grouped around the mean, while a high standard deviation indicates that the data are widely dispersed (less dependable) (more reliable).
Thus, option A is correct.
For more information about standard deviation, click here:
https://brainly.com/question/23907081
#SPJ5
A convertible preferred stock is convertible at $10, pays a 4% annual dividend, is callable at $110, and is trading at a current market price of $116. Based on these details, what is the parity price of the common stock
Answer:
$11.60
Explanation:
In ascertaining the parity price of the common stock, we need to ascertain the conversion ratio which is the par price of the preferred stock divided by the convertible price
The par value of the preferred stock=$100(since call price is $110)
convertible price=$10
conversion ratio=$100/$10=10
The parity price is the current market price of the preferred stock divided by the conversion ratio
Parity price=$116/10
Parity price=$11.60
Common stockholders' equity as of 1/1/2017 $7,031,250 Common stockholders' equity as of 12/31/2017 $8,593,750 Net sales for the year 2017 $3,906,250 Net income for the year 2017 $250,000 Common stock dividends paid during 2017 $10,000 Calculate the company's Payout Ratio.
Answer:
the payout ratio is 4%
Explanation:
The computation of the payout ratio is shown below:
The payout ratio is
= Dividend ÷ net income
= $10,000 ÷ $250,000
= 4%
We simply divided the dividend from the net income so that the payout ratio could come
Hence, the payout ratio is 4%
Answer:
it is 4%
Explanation:
If Modern Company received $3,650 from Connor Young Company on March 12 for the total amount of an account which had been written off on March 1, the entry to reinstate the account under the allowance method would include
Answer:
Please post the full question together next time.
If Modern Company received $3,650 from Connor Young Company on March 12 for the total amount of an account that had been written off on March 1, the entry to reinstate the account under the direct write-off method would include:______.
a. a debit to Allowance for Doubtful Accounts of $3,650.
b. is the same as it would be under the allowance method.
c. includes a credit to Bad Debt Expense of $3,650.
d. includes a credit to Cash of $3,650.
Explanation:
Under the direct write-off method ,
the journal entry is Bad debt expense A/c Dr XXXXX
To Account receivable A/c XXXXX
(Being the bad debt expense is recorded)
For recording this journal entry, we Debited the bad debt expense and credited the account receivable
This is the answer. Hence, all the given options are incorrect
Janet and Megan are debating the use of student discounts by local stores near school. Janet argues, "When stores offer discounts to students with valid identification, it is price discrimination, because they are attempting to separate the market into two groups—each with different demands for that particular good." Megan responds with, "This is not a form of price discrimination, because there is no age restriction for students. Economists generally agree with :
a. Dina
b. Antonio
Answer:
Antonio
Explanation:
In simple words, Antonio has a lot of support among economists. Price discrimination occurs when a vendor is able to split clients into groupings or segregate a marketplace into two categories so that they may charge varying charges to that same two groups. It has hardly anything to deal with the customers' age.
Thus, Antonio is correct with his views.
10 percent decrease in consumer incomes leads to a 20 percent decrease in the quantity demanded of good D. Instructions: Round your answer to one decimal place. If you are entering a negative number be sure to include a negative sign (-) in front of that number. The income elasticity of this good is: . This good can best be described as (Click to select) .
Answer:
Income elasticity = 2
Normal good
Explanation:
Below is the given values:
Percentage decrease in consumers income = 10%
Percentage decrease in quantity demanded = 20%
Use the below formula to find the income elasticity:
Income elasticity = % change in quantity demanded / % in income
Income elasticity = -20/-10
Income elasticity = 2
Since the elasticity is 2 that means good is normal good.
During 2021, Raines Umbrella Corporation had sales of $772,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $465,000, $104,500, and $150,000, respectively. In addition, the company had an interest expense of $74,400 and a tax rate of 25 percent. (Ignore any tax loss carryforward provisions and assume interest expense is fully deductible). Suppose Raines Umbrella Corp. paid out $102,000 in cash dividends. Is this possible? If spending on net fixed assets and net working capital was zero, and if no new stock was issued during the year, what is the net new long-term debt?
Answer:
Paying out $102,000 in cash dividends is possible
Net new long-term debt $26,100
Explanation:
Calculation to determine the net new long-term debt
Sales $772,000
Less Cost of goods sold $465,000
Gross profit $307,000
($772,000-$465,000)
Administrative and selling expenses $104,500
Depreciation expenses $150,000
Earning before interest tax $52,500
($307,000-$104,500-$150,000)
Interest expense $74,400
Profit or Loss before tax ($21,900)
($52,500-$74,400)
Less Tax 25% $0
Add Depreciation expense $150,000
Net Cash flow $128,100
(-$21,900+$150,000)
Dividend $102,000
Net new long-term debt $26,100
($128,100-$102,000)
Therefore Based on the above calculation Paying out $102,000 in CASH DIVIDENDS is possible even though the Net income is Negative, its operating cash flow is $128,100 positive which means that the company has enough cash balance to pay dividends of $102,000. The Net new long-term debt is $26,100
Explain how one driving force has facilitated change at Domino’s.
Answer:
. Executive Summary
This assignment has been written to demonstrate the analytical processes and strategies with a
lens of operation management & operations of Dominos India. We have applied theoretical
frameworks to evaluate the operational strategy with its product and services. This report
focuses on the daily operations of Dominos India’s Connaught Place unit specially, wherein
their staff and manager helped a lot to prepare this report. Team research, interviews and
insights from Dominos existing employees have been documented in this report.
Dominos India has been a leader in its market segment in India.
2. About Dominos India
On 26 March 1995 Domino's Pizza India Private Ltd operation began in 1996 with its’
first store in New Delhi. In January 2016, Domino's opened its 1000th outlet in New
Delhi. The company opened 53 new restaurants between January–March 2018 and
150 outlets in the in financial year 2017-2018 (works, 2016)
Domino's pizza is delivered to its customers with seasoning sachets.
A) Domino’s pizza is a well-established and known pizza brand over the last 57 years
They deliver pizza along with garlic bread and a combo deals with Coke as the
beverages partner.. They have more than 11000 corporate and franchise restaurant
stores in all over 70 countries. And India is the second biggest market for this US
based pizza company (source : Wikipedia). In India They were the first to bring in
the concept of 30 minutes delivery. This has become a benchmark now in India as
people say that Domino’s pizza reaches before police reaches at the spot. Along
with this its excellent customer service, frequent products introduction with variable
topping options as per the customer choice , many outlets close to your location,
soft spoken & trained staff and a peculiar taste have become a driving force for
them. Even though there are many players including Pizza hut, Papa John, Johnny
Rockets and local players, Dominoes is still number One In India.
B) Because of their exceptional operation strategy they have been performing very well
in this cluttered and competitive food market in India.
C) Mission Statement : Exceptional franchisees and team Exceptional franchisees and
team members to be the best pizza delivery company People first Initiativ
Wayland Company has a standard of 5.0 hours of labor per unit, at $11.00 per hour. In producing 800 units, Wayland used 3,800 hours of labor at a total cost of $41,000. What is Wayland's labor price variance
Answer:
Direct labor rate variance= $798 favorable
Explanation:
To calculate the direct labor rate variance, we need to use the following formula:
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Direct labor rate variance= (11 - 10.79)*3,800
Direct labor rate variance= $798 favorable
Actual rate= 41,000 / 3,800= $10.79
The preferred stock of a company pays a $2.75 quarterly dividends. If the preferred stockholders' required return is 7.25% for these shares, what price should the preferred stock sell for?
82.35
151.72
92.31
114.29
167.74
Answer:
$151.72
Explanation:
Quarterly dividends of preferred stock = $2.75
Annual dividend of preferred stock = 4 * Quarterly dividend
Annual dividend of preferred stock = 4 * $2.75
Annual dividend of preferred stock = $11
Required return = 7.25% = 0.0725
Return = Dividend / Current price
0.0725 = $11 / Current price
Current price = $11 / 0.0725
Current price = 151.724138
Current price = $151.72
So, the preferred stock should sell for $151.72.
Activity-based costing is preferable in a system:
a. when multiple products have similar product volumes and costs
b. with a large direct labor cost as a percentage of the total product cost
c. with multiple, diverse products
d. where management needs to support an increase in sales price
Answer:
c. with multiple, diverse products
Explanation:
Activity based costing is a method that is used to share overhead and indirect costs among various products and services offered by a company.
So products that are produced in larger volume will receive more cost allocation.
The cost driver rate is used in this allocation and is calculated by dividing total pool cost by the cost driver.
So cost is allocated based on units of goods produced.
Examples of indirect cost shared are salaries and utilities.
Activity based costing is best for multiple diverse products. So that cost can effectively be allocated based on the amount of activity attributed to a particular product.
Sal is very clear in defining for his subordinates the incentives available to them for different levels of performance. He makes sure they understand the path toward receiving incentives and follows through on rewarding them when they meet those goals. Sal exhibits the _______ theory of leadership.
Answer: d. path–goal
Explanation:
The Path-goal theory of leadership espouses that leaders should be dynamic and use whichever leadership style would be best suited to the abilities of their subordinates and the work environment that they are in.
It is then divided into four styles with the relevant style here being the "directive path-goal clarifying leader behavior". Under this style, the manager specifies exactly what it is that they want from the employees and then rewards them when they meet the required objectives.
The theory of leadership that Sal was exhibiting when he was defining some incentive that can make them perform well and explain the path to follow so as to receive the incentive when they achieve their goal is The path-goal theory.
The path-goal theory can be regarded as one that focus on leader's behavior which serves as contingent to the satisfaction that influence the motivation and performance of their employees. Good example us where Sal promise her employee about incentive once they achieve their goals.Therefore, The path-goal theory is correct.
Learn more at:
https://brainly.com/question/4679152?referrer=searchResults
Burt is strategizing and planning an IMC marketing campaign for the company where he is employed as marketing specialist. If he is to execute an effective IMC campaign, which aspects should he consider
Answer:
Incorporate the manufacturing process steps of the service into your planning and design process. A further explanation is provided below.
Explanation:
Burt would have had to take into account the possible throughout the development process of the marketing campaign when trying to execute an integrated Communication IMC program.An essential component of conducting a successful IMC campaign requires determining the phase including its project lifecycle.Thus the above is the right answer.
Adophus, Inc.'s 2010 income statement reported total revenues of $850,000 and total expenses (including $40,000 depreciation) of $720,000. The 2010 balance sheet reported the following: accounts receivable beginning balance of $50,000 and ending balance of $40,000; accounts payable beginning balance of $22,000 and ending balance of $28,000. Therefore, based only on this information and using the indirect method, the 2010 net cash inflow from operating activities was:
Answer:
Adolphus, Inc.
Therefore, based only on this information and using the indirect method, the 2010 net cash inflow from operating activities was:
= $186,000.
Explanation:
a) Data and Calculations:
Total revenues = $850,000
Total expenses 720,000
Operating income $130,000
Depreciation = 40,000
Beginning Ending Changes
Accounts receivable $50,000 $40,000 -$10,000
Accounts payable $22,000 $28,000 +$6,000
Operating activities section of the Statement of Cash Flows, 2010:
Net income $130,000
Non-cash expenses:
Depreciation 40,000
Changes in working capital:
Accounts receivable 10,000
Accounts payable 6,000
Net cash inflow = $186,000
he primary functions of management are... Group of answer choices Producing change and movement Producing a creative vision Producing positive leadership outcomes Producing order and consistency PreviousNext
Answer:
Producing order and consistency
Explanation:
Management involves the control, planning and organization of the affairs of a business firm.
Basically, the management of an organization is saddled with the responsibility of planning, organizing, controlling and staffing within the organization.
Hence, we can safely deduce that the primary functions of management are producing order and consistency within an organization, so as to meet their set goals, aims and objectives.
This ultimately implies that, the management of a business firm or an organization's with respect to its direction, objectives, and strategy are never final because an effective management strategy is a continuum or an on-going, dynamic process. Thus, it is never a now and then task.
purchased heavy equipment by giving the seller a $30,000 cash down payment and a 5-year interest-bearing note for the $170,000 balance of the price. Compute Pettit's book basis and tax basis in the equipment
Answer: $200,000
Explanation:
The book and tax basis will be the same in this instance because the equipment was purchased newly.
The book and tax basis will be the price of the equipment:
Price = Cash down payment + Present value of interest bearing note
= 30,000 + 170,000
= $200,000
Book and Tax basis is therefore $200,000
Brockton Corporation, which allocates manufacturing overhead on the basis of machine-hours, has provided the following data for its most recent year of operations.
Actual manufacturing overhead costs incurred $35,000
Manufacturing overhead allocated to jobs 33,800
Underallocated or overallocated Manufacturing overhead ?
Required:
Calculate the manufacturing overhead and indicate if the remainder is underallocated or overallocated for the year.
Answer:
Underapplied overhead= $1,200
Explanation:
Giving the following information:
Actual manufacturing overhead costs incurred $35,000
Manufacturing overhead allocated to jobs 33,800
To calculate the under/over allocation, we need to use the following formula:
Under/over applied overhead= real overhead - allocated overhead
Under/over applied overhead= 35,000 - 33,800
Underapplied overhead= $1,200
Materials costs of $720000 and conversion costs of $800800 were charged to a processing department in the month of September. All materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process. There were no units in beginning work in process, 120000 units were started into production in September, and there were 8000 units in ending work in process that were 30% complete at the end of September. What was the total amount of manufacturing costs assigned to those units that were completed and transferred out of the process in September
Answer:
The total amount of manufacturing costs assigned to those units that were completed and transferred out of the process in September is:
= $1,456,000.
Explanation:
a) Data and Calculations:
Units Materials Conversion Total
Incurred during September $720,000 $800,800 $1,520,800
Equivalent units of production:
Units Materials Conversion
Started into production 120,000
Ending work in process 8,000 8,000 (100%) 2,400 (30%)
Completed and transferred out 112,000 112,000 (100%) 112,000 (100%)
Equivalent units 120,000 114,400
Total cost of production $720,000 $800,800
Equivalent units 120,000 114,400
Cost per equivalent units $6 $7
Cost assigned to:
Units completed and transferred out $672,000 $784,000 $1,456,000
Ending work in process 48,000 16,800 64,800
Total cost assigned & accounted for $720,000 $800,800 $1,520,800
Triathlon Cycles specializes in producing touring bicycles but has recently Activity Cost pool Mountain Bicycle Touring Bicycle Direct materials per unit $1,000 $2,200 Total direct labor cost $300 $700 Total manufacturing overhead $75,000 $180,000 Number of units 200 units 400 units1. What is the manufacturing overhead allocated to each mountain bicycle?2. What is the total manufacturing costs of one touring bicycle?
Answer:
$375 per mountain bicycle $3,350 per touring bicycleExplanation:
1. Manufacturing overhead of each mountain bicycle:
= Total manufacturing overheads for mountain bicycles / Number of units
= 75,000 / 200
= $375 per mountain bicycle
2. Manufacturing costs of one touring bicycle
= Direct labor + Direct material + Manufacturing overhead per touring bicycle
= 700 + 2,200 + (180,000 / 400 units of touring bicycles)
= 700 + 2,200 + 450
= $3,350
Transactions that affect earnings do not necessarily affect cash. Identify the effect, if any, that each of the following transactions would have upon cash and net income.
(a) Purchased $100 of supplies for cash.
(b) Recorded an adjusting entry to record use of $20 of the above supplies.
(c) Made sales of $1,200, all on account.
(d) Received $800 from customers in payment of their accounts.
(e) Purchased equipment for cash, $2,500.
Answer:
(a) Cash reduction, no effect on net income
(b) Net income reduction, no effect on cash
(c) Net income increment, no effect on cash
(d) Cash increase, no effect on net income
(e) Cash reduction, no effect on net income
Explanation:
When items or services are exchanged for cash, these may be recognized as assets or expenses. While expenses reduce income, assets do not as it forms the exchange of one asset (cash) for another.
Considering the transactions in light of the above,
a) Purchased $100 of supplies for cash - Supplies are inventory (an asset) and would not reduce net income until it is used up
(b) Recorded an adjusting entry to record use of $20 of the above supplies. No effect on cash, entry is a reduction in supplies and recognition of cost of goods sold. As such net income reduces.
(c) Made sales of $1,200, all on account. - Sales on account are credit sales. This will be recognized as a credit to sales (increase in net income) and a debit to accounts receivable.
(d) Received $800 from customers in payment of their accounts. - To recognize this, we debit cash (increase in cash) and debit accounts receivable. This has no effect on net income.
(e) Purchased equipment for cash, $2,500 - Again, this is he exchange of cash for an asset. This has no effect on income.
The CEO said, "Around every six months, my upper management team and I meet to review the goals that will be achieved over the next year, five years, and beyond. We then make sure we are clear on who will take responsibility to see that appropriate actions are undertaken to achieve our goals within the time frame we set." The CEO is describing the management function of
Answer: Planning
Explanation:
From the information given, the CEO is describing the management function of planning.
Planning refers to the organization of activities which are required to achieve a particular goal. Planning is concerned with the determination of the missions and the resources which will be used in achieving a goal and working towards it's achievement.
Based on the question, the management is creating a detailed action plan that is aimed at an organizational goal.
If the constructor function is a machine to create object instances, then the _____ is the blueprint for the objects that are created.
I think ( prototype)
If the constructor function is a machine to create object instances, then the prototype is the blueprint for the objects that are created.
Suppose GDP consists of eggs and ham. In 2002, 100 dozen eggs are sold at $3 per dozen, and 50 pounds of ham are sold at $4 per pound. If in 2001, the base year, eggs sold at $1.50 per dozen and ham sold at $5 per pound, nominal 2002 GDP is
Answer:
Nominal GDP = $500
Explanation:
Given the price of eggs in 2002 = $3
Quantity of eggs = 100 dozens
Price of ham in 2002 = $4
Quantity of ham = 50 pounds
Nominal GDP = Current year price x current year quantity
Nominal GDP = 100 x 3 + 50 x 4
Nominal GDP = 300 + 200
Nominal GDP = $500
Athena Company's salaried employees earn two weeks of vacation per year. It pays $910,000 in total employee salaries for 52 weeks but its employees work only 50. Record Athena Company's weekly journal entry to record the vacation expense:
Answer:
If $910,000 is paid as employee salary for the year then the weekly salary is:
= 910,000 / 52
= $17,500
The cost of 2 vacation weeks is therefore:
= 17,500 * 2
= $35,000
There are 50 weeks to be worked so vacation expense needs to be apportioned to these weeks:
= 35,000 / 50
= $700
Weekly journal entry is:
Date Account Title Debit Credit
XX-XX-XXXX Vacation Benefits Expense $700
Vacation Benefits Payable $700
Number Style Which of the following sentences apply correct number style? Check all that apply.
a. We prefer that our interns have completed Finance 201 and an advanced professional communication course. He hopes to have at least $2 million in his retirement account by the time he turns 40. 57% of his take-home salary goes straight into his retirement account. Choose the best option to correct the following sentence.
b. She has scheduled the meeting for March eleventh two thousand 8 at eight in the morning. She has scheduled the meeting for March 11, 2008, at eight in the morning. She has scheduled the meeting for March eleventh, 2008 at eight in the morning. She has scheduled the meeting for March 11, 2008, at 8 a.m.
c. Which of the following sentences express correct number style? Check all that apply. John wasn't sure how to break the news without angering the majority of the company's 421 employees. The meeting was scheduled for three o?clock on Friday, February fifteenth. The average salary increase for Division 45 employees was 2.8 percent last year.
d. Which of the following choices has the correct number style to use at the beginning of a sentence? 3/4 of the respondents Three-fourths of the respondents.
Answer:
1. We prefer that our interns have completed Finance 201 and an advanced professional communication course.
• He hopes to have at least $2 million in his retirement account by the time he turns 40
b • She has scheduled the meeting for March 11, 2008, at 8 a.m.
c. The average salary increase for Division 45 employees was 2.8 percent last year.
d. Three-fourths of the respondents
Explanation:
It should be noted that the numbers from one to ten should be written in word form, while those from 11 and above can be written in figures.
The numbers such as percentages that starts a sentence needs to be written in words. Therefore, 57% should be written in words
Therefore, the correct options are:
• We prefer that our interns have completed Finance 201 and an advanced professional communication course.
• He hopes to have at least $2 million in his retirement account by the time he turns 40.
Other correct options to the question include:
b. She has scheduled the meeting for March 11, 2008, at 8 a.m.
For information that has to do with meetings, the numbers should be written in numerical form.
c. The average salary increase for Division 45 employees was 2.8 percent last year.
d. Three-fourths of the respondents
The number should be written in words since it begins the sentence.
Lion Company accepted a $15,000, 30-day, 6% note on December 16 from Diaz Co, granting a time extension on his past-due account receivable. The adjusting entry on December 31 for Lion Company would include a credit to:
Answer:
Interest Revenue for $37.50
Explanation:
The interest that has accrued on the note receivable from December 16 till December 31(for 15 days) needs to be recognized at the end of the year since the interest for those days has been earned.
Based on 30-day month counting, the interest that would be credited to interest revenue and debited to interest receivable on 31 December is computed thus:
interest receivable=$15000*6%*15/360
interest receivable=$37.50
If the old equipment is replaced now, it can be sold for $60,000. Both the old equipment’s remaining useful life and the new equipment’s useful life is 5 years. What is the net cost of the new equipment? g
Answer:
$315,000
Explanation:
The below is missing from the question, hence, my solution would be based on the original question and additional details below:
Old Equipment New Equipment
Purchase price $225,000 $375,000
Accumulated depreciation $90,000 - 0 -
Annual operating costs $300,000 $240,000
The net cost of the equipment is the actual expenditure to the firm by acquiring the new equipment which is the cost of new equipment minus the amount receivable from selling the old equipment
net cost of new equipment=$375,000-$60,000
net cost of new equipment=$315,000
Chip is a veteran who fought in Desert Storm. He has just retired from the military. He has been told he qualifies for a property tax exemption based on his military service during wartime. Which exemption applies to Chip?
Chip is a veteran who fought in Desert Storm. He has just retired from the military. He has been told he qualifies for a property tax exemption based on his military service during wartime. Which exemption applies to Chip?
A. Section 218
B. Proposition 13
C. Section 205
D. Proposition 60
Answer: C. Section 205
Explanation:
Section 205 of the property tax speaks about the property tax exemption for veterans. Under the category of veterans comes the people of military staff who have been currently serving or have been discharged due to some reasons like poor health, loss of body part or any other reason. The emption of property tax cannot exceed $4,000 for eligible veterans.
Section 205 can be applied on Chip for the emption of property tax due to being Veteran.
Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant Inc. Sales $1,250,000 $2,000,000 Variable costs (750,000) (1,250,000) Contribution margin $500,000 $750,000 Fixed costs (400,000) (450,000) Operating income $100,000 $300,000 a. Compute the operating leverage for Beck Inc. and Bryant Inc. If required, round to one decimal place. Beck Inc. fill in the blank 1 Bryant Inc. fill in the blank 2 b. How much would operating income increase for each company if the sales of each increased by 20%? Dollars Percentage Beck Inc. $fill in the blank 3 fill in the blank 4 % Bryant Inc. $fill in the blank 5 fill in the blank 6 % c. The difference in the of operating income is due to the
Answer:
1. Operating leverage = Contribution margin / Net income
Beck Inc.
Operating leverage = $500,000 / $100,000
Operating leverage = 5
Bryant Inc.
Operating leverage = $750,000 / $300,000
Operating leverage = 2.5
2. Income from operations increase = Increase in sales * Degree of operating leverage
Dollar increase = Net income * Percentage
Beck Inc.
Percentage = 5*20 = 100% (Income from operations increase)
Dollar increase = $100,000 * 100% = $100,000
Bryant Inc.
Percentage = 2.5*20 = 50% (Income from operations increase)
Dollar increase = $300,000 * 50% = $150,000
Assume you are manager of the Outback Steakhouse, a franchised restaurant that has opened at new location in St. Louis. Describe which segmentation base(s) and possible segmentation variable(s) you would use to segment its market and explain why each supports the appropriate market segmentation strategy.
Answer:
Market segmentation consists of a strategy to better identify consumers based on common characteristics, that is, divide the market into clusters, so that there is a better targeting of the company's marketing strategies.
In the case of opening an Outback Steakhouse franchise in St. Louis, the bases of segmentation and possible appropriate segmentation variables could be geographical, to better understand the region of the city and surroundings, demographic to understand the characteristics of consumers and form the target audience and behavioral to understand the habits, tastes and preferences of your potential audience, and thus gather important information from that region and align the company's strategy to meet the specific desires and needs of consumers.
A construction manager just starting in private practice needs a van to carry crew and equipment. She can lease a used van for $3,510 per year, paid at the beginning of each year, in which case maintenance is provied. Alternatively, she can buy a used van for $5,185 and pay for maintenance herself. She expects to keep the van for three years at which time she could sell it for $1,330. What is the most she should pay for uniform annual maintenance to make it worthwhile to buy the van instead of leasing it, if her MARR is 20%
Answer:
$2,116
Explanation:
The computation is shown below:
Option 1 - Leasing
= 3510 + ( 3510 ÷ 1.2 ) + ( 3510 ÷ 1.2 ^ 2 )
= 8872.5
Now
Option 2 - Buying
Given that
Initial Cost - 5185
PV of salvage value = 1330 ÷ 1.2 ^ 3
= 769.68
So,
Cost = 5185 - 769.68
= 4457.176
Now the payment should be
= 4457.176 × 0.47473 (PV annuity factory for 20% at 3 years)
= $2,115.955
= $2,116
