Answer:
Britain and France did not want to spend money to enforce the Treaty of Versailles. They hoped that appeasement might encourage Italy and Germany to become strong trading partners, benefiting the economies of all involved.
Explanation:
Hope this helps.
a coupon bond that pays interest of 4% annually has a par value of $1,000, matures in 5 years, and is selling today at $875. the actual yield to maturity on this bond is . 8.82% 9.62% 7.05% 6.58%
Actual Yield to maturity is 6.58%
The annual rate of return an investor will receive if they hold a bond until it matures is known as yield to maturity.
Face value = F = $1,000
Coupon payment = $1,000 x 4% = $40
Selling price = P = $875
Number of payment = n = 5 years
Yield to maturity = [ C + ( F - P ) / n ] / [ (F + P ) / 2 ]
Yield to maturity = [ $40 + ( $1,000 - $875) / 5 ] / [ ( 1,000 + $875) / 2 ]
Yield to maturity = [ $40 + $25 ] / $937.5 = $65 /$937.5 =0.0693333333
Actual Yield to maturity is 6.58%
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location a has a fixed cost of $400,000 and a variable cost of $13.50 per unit. location b has a fixed cost of $650,000 and a variable cost of $12 per unit. what is the break-even quantity? a. 166,667 units b. 256,000 units c. 122,648 units d. 192,626 uni
The break-even quantity is a.166,667 units for location a and location b.
The contribution margin (revenue per unit minus variable cost per unit) is equal to zero at the break-even point.
To find the break-even quantity, we need to determine the number of units that must be sold in order for the total revenue to equal the total cost.
To find the break-even quantity, we need to determine the point where the total cost equals total revenue. This occurs when:
Total Cost = Total Revenue
Total Cost = Fixed Cost + (Variable Cost per unit x Quantity)
Total Revenue = Price per unit x Quantity
Let x be the break-even quantity, then we have:
For location a:
Total Cost = 400,000 + 13.5x
Total Revenue = xP
For location b:
Total Cost = 650,000 + 12x
Total Revenue = xP
Setting the total cost equal to the total revenue, we get:
For location a:
400,000 + 13.5x = xP
For location b:
650,000 + 12x = xP
We need to solve for x, so we can equate the two equations:
400,000 + 13.5x = 650,000 + 12x
Simplifying, we get:
1.5x = 250,000
x = 250,000 / 1.5
x = 166,667
Therefore, the break-even quantity is 166,667 units for location a and location b.
If the revenue per unit is higher than the variable cost per unit, the break-even quantity will be lower, and if the revenue per unit is lower than the variable cost per unit, the break-even quantity will be higher.
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the manhattan bail project found that the court could make a reasonably accurate decision about whether the accused would return to court with what information?
Information such as the kind of crime committed, the defendant's personal connections, and previous employment. The correct answer is (D).
The judge serves to inform the plaintiff of the charges brought against him or her at the arraignment and appoints legal representation if one hasn't yet been appointed.
In jurisdictions where there is no employ the grand judicial process, an information is a required to charge document prepared by a prosecutor.
The standard for convicting a plaintiff accused of an offense at the adjudicatory phase of something like the criminal proceeding is evidence beyond reasonable doubt.
The method used to determine whether jurors are qualified to join a jury is recognized as voir dire.
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"Complete question"
The judge could fairly determine what the accused would return to court including what information?. according to the Manhattan Bail Project's findings.
if average household income increases by 50%, from $40,000 to $60,000 per year, the quantity of rooms demanded at the rivers from rooms per night to rooms per night. therefore, the income elasticity of demand is , meaning that hotel rooms at the rivers are .
An elastic demand changes significantly in quantity demanded in response to a price change.
How to calculate elasticity of demand?1. Rises, from 150 to 200
2. Income elasticity of demand = % change in quantity demanded / % change in income
% change in quantity demanded = (200 - 150)/150*100
= 5000/150
= 33.3%
% change in income = 20%
Income ED = 33.3/20 = 1.67
3. Regular items are in higher demand due to rising incomes, which also applies to Big Winner hotel rooms.
4. falls, 150 to 50
5. Cross price elasticity = %change in quantity demanded / %change in price of other good
% change in quantity demanded = (50-150)/150*100 = -33.3%
% change in price of airplane ticket = 20%
Cross price elasticity = -33.3/20 = -1.67
6. Complements because they are jointly used. To reach hotel, person has to travel from airplane.
7. Increases; elastic
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during which stage of the process does the marketer lead the preliminary analysis and calculations for demand, cost, sales, and profitability?
During the Developing and Business Analysis stage of the process, the marketer leads the preliminary analysis and calculations for demand, cost, sales, and profitability.
Business analysis is an exploration discipline that assists you with finding the business needs and characterizing answers for business issues
It assists you with grasping the design and the elements of the organization
Here are the means for Business analysis:
1) Enterprise analysis
2) Requirement Planning and Management
3) Requirement Elicitation
4) Requirement analysis and Documentation
5) Requirement Communication and
6) Solution Evolution and Validation.
Significant business analysis strategies are:
1) MOST
2) PESTLE
3) SWOT
4) MoSCoW
5) CATWOE
6) The 5 Whys and,
7) Six Thinking Hats
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suppose that the equilibrium price of blackberries is $3 per pound, and the price of black raspberries (a substitute for blackberries) increases. what happens in the market for blackberries? the demand curve for blackberries shifts to the right, resulting in an increase in both the equilibrium price and quantity. an excess demand for blackberries at $3 per pound results in a new equilibrium price that is less than $3 per pound. an excess supply of blackberries at $3 per pound leads to an increase in quantity demanded and a decrease in quantity supplied. the demand curve for blackberries decreases, reducing the equilibrium price and raising the equilibrium quantity.
The correct answer is: excess demand for blackberries at $3 per pound results in a new equilibrium price that is less than $3 per pound.
When the price of black raspberries increases, consumers will tend to switch to blackberries as a substitute, leading to an increase in the demand for blackberries. As a result, the demand curve for blackberries shifts to the right, causing an excess demand for blackberries at the current equilibrium price of $3 per pound. In response, the price of blackberries will rise to a new equilibrium level, but it will be less than $3 per pound as the quantity supplied by the market adjusts to meet the increased demand. Therefore, the correct answer is that an excess demand for blackberries at $3 per pound results in a new equilibrium price that is less than $3 per pound.
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classify each scenario according to whether the change in quantity is caused by a shift of the supply curve or movement along it.
The supply curve might move if the following: Due to lower soap prices, a national consumer electronics factory creates with less its premium grade soap. U.S. citizens sell their gold and silver jewellery due to rising costs.
What exactly is a supply curve?The supply curve, which has a positive slope, depicts how supply changes as a function of the good's price. Given all other factors being equal, the quantity supplied increases with increasing product price.
Sort each scenario into a category based on whether the shift in the aggregate demand curve but rather movement along supply curve is to blame for the change in quantity. the supply curve changing a shift in the supply curve increasing salaries for Toronto construction workers
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a public good multiple choice is overproduced by the market. experiences the free-rider dilemma. causes government failure. is any good produced by the government.
The correct option is D. A public good Experiences the free-rider dilemma.
A market is any region in which or greater occasions can meet to interact in a monetary transaction—even the ones that do not involve legal gentleness. A market transaction might also moreover comprise goods, services, statistics, foreign money, or any aggregate of those that bypass from one birthday celebration to another.
In elegant, the function of a marketplace is to collect products from scattered resources and channel them to scattered stores. From the factor of view of the seller, dealers channel the call for their product; from the thing of view of the consumer, they bring elements within his obtain. A marketplace is an area wherein buyers and sellers can meet to facilitate the change or transaction of products and services. other examples encompass illegal markets, public sale markets, and economic markets.
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complete Question:
A public good
A. Is any good produced by the government
B. Is overproduced by the market
C. Causes government failure
D. Experiences the free-rider dilemma
the cost of a water purification system can be used to measure the willingness to pay for improved water quality, according to the:
Secchi discs (which measure the transparency of the water), probes, nets, gauges, and metres are just a few of the many tools scientists use to assess the quality of the water.
Some toxins in our water might cause health concerns, such as neurological diseases, reproductive transparency, and gastrointestinal illnesses. Those with low immune systems, infants, young children, quality women, the elderly, and preg-nant women may be particularly susceptible to sickness.
Frequent transparency measurement is a crucial transparency management technique because it: Encourages the efficient use of limited resources and the provision of essential services. gives the data required to manage health insurance policies, medical professionals.
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a bond that pays interest annually has a 5.25 percent promised yield and a price of $1,040. annual interest rates are now projected to fall 50 basis points. the bond's duration is six years. what is the predicted new bond price after the interest rate change? (do not round on intermediate calculations.)
Using the modified duration formula, the bond's modified duration is 5.55. Given the change in interest rates, the predicted new bond price is $1,088.61.
Using the modified duration formula, we can calculate the approximate percentage change in bond price given a change in interest rates:
% Change in bond price = -Modified duration * Change in interest rates
Since the bond has a duration of six years, we have:
Modified duration = 6 / (1 + 0.0525) = 5.66
If interest rates fall by 50 basis points, the new rate will be 5.25% - 0.5% = 4.75%.
Using the percentage change formula, we get:
% Change in bond price = -5.66 * (-0.005) = 0.028
To find the new bond price, we can multiply the percentage change by the old price and subtract the result from the old price:
New bond price = $1,040 - (0.028 * $1,040) = $1,011.20
Therefore, the predicted new bond price after the interest rate change is $1,011.20.
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For each of the following companies, specify whether each company would be more likely to use job costing or process costing a. Janitorial services company b. Soup manufacturer c. Commercial plumbing contractor d. Toothpaste manufacturer e. Catering service f. Shipbuilder g. Company providing Web design services h. Medical practice of six doctors and four physician assistants i. Soft drink bottler j. Movie studio k. Plastic bottle manufacturer l. Architect m. Temporary staffing agency n. Oil refinery
Company providing janitorial services; For each of following businesses, indicate whether it'd be more probable to use process costing or job costing.
Which businesses employ process and job costing?Job order costing can be used by enterprises as in white-collar sector of the economy, such as law firms, accounting firms, and private investment firms, to handle specific client accounts. For instance, accounting firms may view every client as a separate task.
Who among the following businesses is most likely to employ process or work order costing?Response and justification A medical clinic, option A, is the correct response. Given that it provides its clients with specialized and one-of-a-kind services, a health care clinic is most likely to adopt a job-order costing system.
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the nab process in interviewing/selling refers to:group of answer choices need-action-benefit normal-activities-benefitneeds-activities-backup necessary-and-beneficial
In interviewing/selling, the nab process refers to needs-activities-backup-necessary-and-beneficial.
What is the interview procedure?An interview is a structured discourse in which one person asks questions and the other responds. The term "interview" refers to each discussion between an interviewer and an interviewee.
The interview procedure for hiring new employees is divided into many parts. Typical interview procedures include writing a job description, posting a vacancy, organizing interviews, conducting preliminary interviews, performing in-person interviews, following up with applicants, and making a hire.
The interview is a conversation during which you and your potential employer exchange information.
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national savings is the sum of private savings and: group of answer choices private consumption. government tax revenue. trade surplus. the budget balance.
The total of individual and public savings, which is equivalent to the government's budget surplus, is known as national savings. The difference between government spending and tax collection is the government's budget surplus.
All of an economy's private savings are made by people, households, and enterprises. It is the portion of money that is saved rather than spent in order to be used later. Private savings can be used to fund startup ventures, settle debt, or set aside money for retirement. National savings are a crucial macroeconomic indicator because they show the amount of resources that are available for investment in a country's economy. More resources are available for investment when there are higher levels of national savings, and this can eventually result in economic growth and development.
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which stage requires that team members feel they are a part of the team for further progression in group development to occur? group of answer choices performing forming storming inclusion
The stage of group development that requires team members to feel like they are part of the team for further progression is the "norming" stage.
During this stage, team members begin to establish norms, or guidelines for behavior, and develop cohesion as a group. This stage is important because it helps team members establish a sense of identity and purpose within the group, which can lead to increased motivation, commitment, and cooperation. Once the team has successfully navigated the norming stage, they can move on to the performing stage, where they are able to effectively work together to achieve their goals.
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Complete qquestion:
Which stage requires that team members feel they are a part of the team for further progression in group development to occur?
a. forming
b. storming
c. norming
d. performing
why is productivity growth considered to be the most important factor in the ad/asad/as model? an.it shifts the ad curve in the long-term b.it shifts the ad curve in the short-term c.it shifts the as curve in the short-term d.it shifts the as curve in the long-term
Productivity growth is considered to be the most important factor in the AS/AD model because it shifts the AS (Aggregate Supply) curve in the long-term, option (d) is the correct one.
Productivity growth means that more output can be produced with the same amount of inputs or resources. This leads to an increase in the potential output of the economy, which shifts the long-run AS curve to the right. As a result, the economy can produce more goods and services at the same price level or the same amount of goods and services at a lower price level.
In the short-term, an increase in productivity growth may lead to higher costs and prices for businesses as they invest in new technology and training. However, in the long-term, the benefits of productivity growth in terms of increased potential output and lower costs will outweigh the short-term costs, resulting in a rightward shift of the AS curve.
This shift in the AS curve will eventually lead to a lower price level and a higher level of real GDP, which will shift the AD (Aggregate Demand) curve to the right in the long-run. Therefore, productivity growth is considered to be the most important factor in the AS/AD model as it has long-term effects on the potential output and price level of the economy.
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what name is given to the process of amassing, reviewing, and summarizing all information concerning a particular planning issue? Multiple choice question.Mission statementOrganizational controlSituational analysisProfit and loss analysis
Situation analysis is given to the process of amassing, reviewing, and summarizing all information concerning a particular planning issue .
What does situation analysis mean?
The method of compiling data on the internal and external surroundings in order to evaluate the firm's existing strengths, weaknesses, opportunities, and threats and to direct its goals and objectives.
Customers offer important details about the target market, the current clientele, and the prospects a business might look to capitalize on through a marketing strategy.
What are the four situation analysis layers?
Businesses utilize a SWOT (strengths, weaknesses, opportunities, and threats) analysis, a four-point analysis, to assess the advantages and disadvantages of their internal and external environments.
Strengths and weaknesses are the first two parts of this analysis, which refer to internal elements of an organization.
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banks and insurance companies are examples ofmultiple choicecentral banks.regulatory agencies.financial institutions.financial instruments.
Banks and insurance companies are examples of financial institutions, which are organizations that provide financial services to customers.
These services may include accepting deposits, making loans, providing insurance products, and offering other financial services such as investment advice and wealth management. Banks are financial institutions that accept deposits from customers and use those deposits to make loans to other customers. They also offer a range of other services such as credit cards, online banking, and wealth management products. Banks are an essential component of the financial system as they provide credit to individuals and businesses, which fuels economic growth. Insurance companies, on the other hand, provide protection against financial losses that may arise from unexpected events such as accidents, illness, or death. They collect premiums from customers and use those premiums to pay out claims when necessary. Insurance companies offer a variety of products, including life insurance, health insurance, car insurance, and home insurance. In summary, banks and insurance companies are examples of financial institutions, which are critical to the functioning of the financial system. Banks provide credit to individuals and businesses, while insurance companies offer protection against financial losses. Both types of financial institutions play a vital role in the economy and are subject to regulation by various government agencies to ensure their stability and integrity.
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Which business custom do the MINT countries of Mexico, Indonesia, Nigeria, and Turkey all have in common? a) following stict agendas for business meetings b) being punctual for business meetings c) avolding alcohol while dining d) discussing politics e) shaking hands
The correct option is e i.e., shaking hands is the business custom do the MINT countries of Mexico, Indonesia, Nigeria, and Turkey all have in common.
What are the conventions in global business?International business customs are actions, conduct, or standards of communication that people in different nations observe. For instance, while people in other nations may greet each other with air kisses during business meetings, Americans often shake hands.
What three types of business customs are there?You should be aware of three categories of corporate customs: cultural imperatives, cultural choices, and cultural exclusives. Cultural imperatives are norms that, in order to succeed, you must follow. Relationship building is an illustration of a cultural necessity.
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fc.04 it could be said the forecasts drive the planning process, the lining up of resources to support those plans. which purchasing/investment decision would you feel most comfortable making without having some sort of related forecast?
buying goods for the office Which purchase or investment decision do you feel most confident making without any kind of corresponding forecast?
What is an investing decision and an illustration?Both long-term and short-term investments are available. The purchase of production-related machinery is an illustration of a long-term capital choice. As it influences the company's long-term earnings, this is significant. Stock levels, inventories, and other factors affect short-term investments.
What are the top three investment choices?Capital planning and long-term investment choices 2. The choice of capital structure and financing 3. The Dividend Choice 4.
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consider the following bonds. bond coupon rate maturity price per $100 of face value yield to maturity annual rate, compounded semi- annually vermeero enterprises 4% 5 years ???? 6.00% renwaro company 0% 5.5 years 74.1993 ???? a) draw a diagram showing the cash flows for each of the bonds. b) calculate the price of the vermeero bond. c) calculate the yield to maturity for the renwaro bond. d) suppose you purchase the renwaro bond today. you plan to sell this bond one year from now, and you forecast that the yield to maturity of the renwaro (at the sale date) will be 5% annual rate, compounded semiannually. if your forecast is correct, what will the holding period yield for this investment be?
duration of Renwaro company bond if sold after 1 year: Actual duration of any bond is maturity.here bond is sold in after 1 year. If it treated as coupon rate it is the duration. YTM of Renwaro company bond:
YTM= (Coupon + ((P - FV)/n))/((P+FV)/2)
= (0+((74.1993-100)/5.5))/((74.1993+100)/2)
= (0+((74.1993-100)/5.5))/((74.1993+100)/2)
=4.691/87.0997
= 5.39%Therefore, YTM of Renwaro Company bond is 5.39%
If the purchase price is equal to the par value of the bond, the coupon rate and yield to maturity coupon ratewill be the same. A bond's face value, also known as the stated value of the bond at the time of issuance and established by the issuing company, is its par value. The majority of bonds have $100 or $1,000 as their par value.However, a bond's market price is unrelated to its par value. On the other hand, a bond's market or selling price is impacted by a number of additional elements in addition to its par value. The bond's coupon rate, the bond's maturity date, the current interest rate environment, and the availability of bonds with
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lester's bbq has $121,000 in current assets and $109,000 in current liabilities. these values as referred to as the firm's:
Lester's BBQ has current liabilities of $109,000 and assets of $121,000. These amounts are known as the company's working capital.
What differences exist between assets and liabilities?At the most fundamental level, the two sections of your balance sheet are your assets and liabilities. The things things your company has and may one day bring you money are referred to as assets. You owe others the things you owe them. Simply said, having assets improves your financial stability whereas having liabilities does not.
Equity vs. liability: What does it all mean?Liabilities are indeed the debts and obligations a corporation owes to other parties, whereas equity is the economic investment that shareholders own in a company. This is how equity & liabilities are primarily distinguished in business. Equity is calculated by deducting liabilities from assets.
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what is the difference between a commercial real estate listing and a residential real estate listing?
Apartment complexes, industrial spaces, hotels, retail spaces, and office spaces are all examples of commercial structures. A residential real estate property is any property with one to four residential units. This can comprise a single-family house, a townhome, a condo, a mobile home, or a multiplex complex.
What does industrial space use mean?
The term "industrial space" is most typically used to describe a structure used for manufacturing, production, fabrication, assembling, and holding meetings. Moreover, while industrial space might incorporate warehousing operations, it does not always have to be a warehouse facility. An industrial city is a zone or area that comprises of a cluster of stand-alone industrial units that all operate at the same time. It is generally located on the outskirts of a city and has adequate transportation access, including road and rail.
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holden and monique both own stock in a social media company. while monique has the ability to elect a board of directors, holden does not. however, holden receives dividends regularly while monique has never received dividends. what type of stock does holden own?
The type of stock does Holden own is debentures of a social media company.
What are stocks?The tocks, also known as shares or equities, represent ownership in a corporation or company. When you own a stock, you are a shareholder and you own a portion of the company.
The companies issue stocks to raise capital to fund their operations, investments, and growth. Investors can purchase stocks on stock exchanges or through brokerage firms.
The price of a stock is determined by supply and demand, which is influenced by a range of factors.
In the above case, the type of stock does Holden own is debentures of a social media company.
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otto enterprises has a 15-year bond issue outstanding with a coupon of 8 percent. the bond is currently priced at $923.60 and has a par value of $1,000. interest is paid semiannually. what is the yield to maturity?
We can use trial and error or a financial calculator to find the yield to maturity that satisfies this equation. The yield to maturity turns out to be approximately 4.5% (rounded to one decimal place).
To calculate the yield to maturity, we need to use the bond pricing formula: P = C / r * (1 - 1 / (1 + r)^n) + F / (1 + r)^n Where: P = current market price of the bond
C = coupon payment
r = yield to maturity (or discount rate)
n = number of periods (in this case, number of semiannual payments)
F = face value or par value of the bond
We know the following values: P = $923.60
C = $40 (8% of $1,000 par value, paid semiannually)
n = 30 (15 years x 2 semiannual payments per year)
F = $1,000 Now we need to solve for r, the yield to maturity: 923.60 = 40 / r * (1 - 1 / (1 + r)^(30)) + 1,000 / (1 + r)^(30)
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if mortgage rates rise from 4% to 5%, but the expected rate of increase in housing prices rises from 5% to 9%, are people more, or less, likely to buy houses?
People are less likely to buy houses if mortgage rates rise from 4% to 5%, but the expected rate of increase in housing prices rises from 5% to 9%.
This is because the higher mortgage rate increases the cost of the loan, while the higher expected rate of increase in housing prices makes it less attractive to invest in a home. Are people more or less likely to purchase homes if mortgage rates increase from 5% to 10% but the anticipated rate of increase in property prices increases from 2% to 9%? Because the real interest rate that must be paid has decreased from 3% to 1%, more people are now likely to buy homes. Due to increasing mortgage rates restricting people's ability to borrow, homebuyers should be cautious not to overextend themselves and be ready for the chance that house values may decline from their current high levels.
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one major characteristic of the price system is that consumers together are the ones who ultimately decide what is produced. individual sellers ultimately decide what is produced in the market. competition among sellers is reduced. all exchanges are regulated by the government.
It is neutral because prices do not favor either the producer or the consumer because both make decisions that determine the equilibrium price.
One of the most important features of a market economy,also called a free enterprise economy,is the role of limited government.In a market economy, the desires of consumers and the profit motive of producers will decide what will be produced, also known as free enterprise,laisse-faire, and capitalism.Labor workers and management,bosses owners together will determine how goods will be produced in a market economy.The interaction of supply and demand determines a market equilibrium in which both buyers and sellers are price takers, called the competitive equilibrium. The competitiveness of a nation depends on the ability of its industry to innovate and improve.Companies gain an advantage over the best competitors in the world.Economists have had a huge impact on trade policy and provide a strong rationale for free trade and the removal of trade barriers.
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The division of power among several institutions that must cooperate in decision-making is known as:_______
The division of power among several institutions that must cooperate in decision-making is known as separation of powers.
What is separation of powers?The term "Separation of Powers" is attributed to the 18th-century philosopher Montesquieu. Each arm of the government is given unique and independent functions under the separation of powers concept. By having numerous branches of authority, this system helps to ensure that no one branch of government is more powerful than any other. The three divisions into which the government is commonly divided under this system are the Judicial Branch, the Executive Branch, and the Legislative Branch. The federal government of the United States and the forty state governments use these three branches of government.
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Which federal agency established during the new deal guarantees bank deposits up to a certain amount against loss? a. federal deposit b. insurance corporation securities and exchange commission c. social security administration d. tennessee valley authority
The Federal Deposit Insurance Corporation is a federal organisation created during the New Deal that protects bank deposits up to a specific amount against loss (FDIC).
In order to protect depositors in the event that their bank fails, the Federal Deposit Insurance Corporation (FDIC) is a U.S. government organisation that was founded in 1933 during the New Deal era. In times of economic instability, the FDIC lowers the risk of bank runs by guaranteeing bank deposits up to a particular amount against loss. This helps to retain public confidence in the banking system. The agency's goal is to keep the U.S. financial system stable and the public's confidence by protecting deposits, vetting and monitoring financial institutions for safety and soundness, and mitigating the effects of bank failures. The FDIC does not rely on tax payer money to fund its insurance operations; instead, it is supported by premiums paid by financial institutions that are covered.
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what are three primary reasons for the popularity of online buying in all three kinds of organizational markets? multiple select question.
There are several reasons for the popularity of online buying in all three kinds of organizational markets (B2B, B2C, and C2C), but three primary reasons are:
What are organizational markets ?Convenience: Online shopping offers customers the freedom to shop whenever they want, from anywhere, without having to go to a real store. For working professionals who might not have the time to visit actual establishments during regular business hours, this is especially crucial.Savings on overhead costs like rent, utilities, and staff allow internet businesses to offer products at lower rates than those found in traditional locations. Additionally, customers can save money on transportation-related expenses including petrol, parking, and public transportation.Access to a larger assortment: Online shopping gives clients worldwide access to a larger selection of goods and services. This is crucial for companies that need particular goods or services that might not be offered locally.
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vci is considering the addition of a fourth model to its line of dvds. this model would be sold to retailers for $375. the variable cost of this unit is $225. the demand for the new model lx4 is estimated to be 300 units per year, sixty percent of these units sales of the new model is expected to come from other models already being manufactured by vci (10 percent from model lx1, 30 percent from model lx2 and 60 percent from model lx3. vci will incur a fixed cost of 20,000 to add new model to the line. based on the data do you think they should add a new model lx4 to the lines or vcr's and if so why?
Estimation of Responsibility per unit of each model
LX 1 LX 2 LX 3 LX 4
Selling Value Per unit $635.00 $315.00 $415.00 $535.00
Variable cost per unit $215.00 $110.00 $105.00 $315.00
Commitment Per unit $420.00 $205.00 $310.00 $220.00
Calculation of Steady Advantages of new Model LX 4
Particulars Amount
Deals units of LX4 1650
Commitment from Deals of LX4 (1650 *$220) $363,000.00
Less: Commitment deficiency of LX1 (1650*60%*10%*$420) $41,580.00
Less: Commitment deficiency of LX2 (1650*60%*30%*$205) $60,885.00
Less: Commitment deficiency of LX3 (1650*60%*60%*$310) $184,140.00
Net Extra Commitment from Offer of LX 4 $76,395.00
Extra Fixed Cost $20,000.00
Net Extra pay from LX4 $56,395.00
As there is extra pay of $56,395 on new model LX4, , accordingly New model LX4 ought to be added to the creation line.
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