You discover the engine-oil additive your scientists developed three years ago makes a great men’s after-shave once diluted properly using certain chemicals. How should you treat the original $125,000 of R&D expenditures that went into developing the engine-oil additive for your present decision regarding whether or not to begin production of the after-shave? a. Treat it as a cash outflow three years ago for the current project; that is, find the future value today of the $125,000 spent three years ago.

Answers

Answer 1

Answer: e. As a sunk cost since the R&D expenditure has no bearing on today's investment decision.

Explanation:

Sunk Costs are not to be factored in when making decisions because they have already been incurred and cannot be recovered.

This R&D expense should therefore be treated as a sunk cost because it has already been incurred and expensed and does not contribute to the decision today to embark on the men's after-shave venture.


Related Questions

Search to find any summary about the company that mentions funds for starting the business.
Look to see what kinds of products or services will be involved with the business.

Step 2. Search to find any summary about the company that mentions funds for starting the business. Try to find any information containing employee data in this section. Step 3. Find the section where the product or service is detailed. Look to see what kinds of products or services will be involved with the business. Compare this with what other similar business plans are offering.

Record the information you found for steps 2 and 3. Make sure you discuss how the company got money to start the business, employee data, and what products or services the company provides in comparison with what other similar business plans are offering.

Answers

After conducting research on the internet, a summary about a company that mentions funds for starting the business, employee data, and products or services that the company provides compared to other similar business plans has been found.

The company’s name is K-12 Business Education Services and they specialize in providing online business courses to K-12 schools. Their courses are designed to help students learn about business principles such as marketing, finance, accounting, and entrepreneurship. The company’s business plan indicates that they have received funding from several sources including angel investors, venture capitalists, and bank loans. They also have a team of experienced employees who have been in the business education industry for many years. According to the company’s website, they offer a wide range of courses that are designed to be engaging and interactive. Students can learn at their own pace and can complete their coursework from anywhere with an internet connection. The courses are also designed to be affordable, which makes them accessible to a wider range of students. In comparison to other similar business plans, K-12 Business Education Services is unique in that they offer a comprehensive range of courses that are designed specifically for K-12 students. Other similar business plans tend to focus on providing courses for adult learners or students who are already enrolled in college. Additionally, K-12 Business Education Services has received funding from several sources, which indicates that they are a promising start-up that has the potential to grow and expand in the future.

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Which of the following is not one of the Three Cs? (1 point)
Ocharacter
O capacity
Ocollateral
O capital

Answers

Answer:

Capital

Explanation:

the three c’s are collateral, capacity and character

How was thinking on the margin help increase the chance of long-term success for your business, even if additional competition enters your community?

Answers

The thinking on the margin help increase the chance of long-term success for your business, even if additional competition enters your community by establishing strategies to give that push to potential consumers.

What is the long-term success for your business?

You must conduct a thorough analysis of your company, both reviewing the history and "visioning" the future, to ensure long-term success. This process entails both what you have already done and what you must do to give it the "legs" it needs to survive for many years to come.

By developing tactics to encourage potential customers, margin thinking can boost your company's chances of long-term success—even if new competitors move into your neighborhood.

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Conducting a search of the store is part of store closing duties.Why?

Answers

Searching for the store is one of the store closing duties so no work or the detailing of the extra work to be done is being overlooked.

What are the Store closing duties?

Store closing duties are one of the most important duties which is a must and also needs to be followed the most important thing regarding the store closing duties are to in an organized manner to close down the hops and also to move on freely for over some time.

The Store closing duties include a lot of things including the most important and also the only way of carefully carrying out the most essential form of few steps that to look after the shops, the customers as well as the way a sho needs to close before anything else.

Store closing duties are also carried out very carefully and it is the most important responsibility of the store owners.

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Objectives of pep stores

Answers

Answer:

The answer is below

Explanation:

PEP is a big store that is located in South Africa and other African countries.

Based on the PEP mission and vision and according to the company's website, the Objectives of PEP stores are:

1. To be the friendliest and most trusted retailer for this market.

2. To offer wanted products and services at the lowest possible prices

3. To meet changing consumer needs.

Describe the shifts in the world economy over the past 30 years. What are the implications of these shifts for international businesses based in the United Kingdom

Answers

Answer:

In the last 30 years, national economies have shifted towards decreasing trade barriers, and the world is becoming global economic space.  Economic turbulence, especially in one of the major economies like the US, Europe, and China, tends to have ripple effects on other world economies.  For example, the subprime housing crisis in 2008, which upturned the US economy, reached global proportions with the economic and financial meltdowns  that were felt globally.

The new emergence in the economic system suggests that national boundaries are shrinking, and economies are becoming integrated and interdependent.  In the last 30 years, China emerged as a global economic superpower, challenging the dominance of the US and European economies.

For businesses based in the United Kingdom, they have wider opportunities and better playing grounds.  They can look beyond Europe and the US for investment and business opportunities.  China, especially Hong Kong, is becoming an investment haven.  Even other developing countries like Brazil, South Africa, and Dubai are becoming more attractive with increased consumer spending.

Secondly, the United Kingdom will continue to be the center of attraction for some Asian firms that will use London as a launching pad for their European businesses.  This also poses some threats, just as it generates opportunities for global expansion of UK-based businesses.

Explanation:

Globalization has caused the world economies to merge and become a global economy.  However, in the last four years, China seems to be recoiling to its shelves with the coming on board of the Trump Administration, which had exposed China's behind-the-door fiscal and monetary policies.  This started when the administration labeled China as a currency manipulator.  China is becoming alienated from the US and having its reputation tarnished internationally.  The earlier prediction that China would emerge as the dominant superpower economy in 2010 was not wholly realized.  China is re-strategizing by concentrating its investments in Asia, Africa, Latin America, and some parts of Europe.

BALANCE SHEETS
1. Complete the balance below for your company you developed earlier in this course (salon)
2. List 3 or more fictional assists and liabilities, and the total equity for your business.
3. List a value for each and make sure that your values balance.
20 pts

BALANCE SHEETS 1. Complete the balance below for your company you developed earlier in this course (salon)

Answers

Fictional Assets and Liabilities

Assets

Value of all salon-owned furniture and equipment.Inventory: The total cost of the salon's goods.Intellectual property: The worth of any trademarks or patents that the salon may have.

Liabilities

The sum owing to lenders is known as the loans payable.Taxes Payable: The sum that must be paid in taxes to the government.The total of expenses that have been incurred but not yet been paid.

Balancing Values

Due to the $50,000 total assets for year one and the $50,000 total liabilities and equity, the equity is the negative of the equity balance.

As a result, the significance of the fictional assists and liabilities are the aforementioned.

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BALANCE SHEETS 1. Complete the balance below for your company you developed earlier in this course (salon)

The City of Houghton enacted an ordinance that forbids religious groups from distributing religious materials within the city limits of Houghton unless the distributor is granted a permit. Other types of materials can be distributed without a permit. What concerns do you have about the constitutionality of this ordinance?

Answers

The concerns that have about the constitutionality of this ordinance are Freedom of Religion, Content-Based Restrictions, Prior Restraint, Equal Protection and Unfettered Discretion.

Here are a few major concerns:

Religious Freedom: The First Amendment to the United States Constitution provides religious freedom, which includes the right to practise and express one's religious views. Content-Based limitation: By treating religious materials differently from other types of materials, the ordinance appears to impose a content-based limitation on communication. Prior constraint: Requiring religious organisations to seek a licence before disseminating religious materials is a type of prior constraint on speech. Equal Protection: If the ordinance treats religious groups differently than other groups or items, it may raise questions regarding legal equality. Unrestricted Discretion: If local officials have unrestricted discretion in choosing who gets a permit, there is a possibility of viewpoint discrimination or bias.

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How does the scientific method apply to marketing? Explain, citing an example from the video

Answers

The scientific method is applicable to marketing because you can invest in a brand, but contradictory evidence can demolish a consumer's beliefs.

What do you mean by scientific method?

Across testing and research, the scientific method affirms facts in an unbiased manner.

When you approach marketing as an experiment, you can learn why your efforts are successful as well as make more accurate predictions about what might work.

By using the scientific method, you can produce results that are based on data and unbiased.

Therefore, Because you can invest in a brand, but contradictory evidence can demolish a consumer's beliefs, the scientific method is applicable to marketing.

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GIVING BRAINLIEST
hi!.... so i have a question for all of you... how do you make money?

Answers

Well I’m young so I make money through part time jobs such as chick fila or some other restaurant that pays

Answer: Doing activities that involve services that qualify for payment.

Explanation: Those services could be our normal daily jobs. Janitors, teachers, engineers, doctors, etc. Other ways to make money could be doing it the easier way, but not making a better profit then the daily services. That can be finding trips or tricks online to make a quick buck, doing small jobs like delivering newspapers or having a food stand.

dfsdfsdfdsfdsfsddfafaafdsfsdfdsfdsfdsfsf

Answers

Answer: -hits him with a shoe-

Explanation:

if i work 3:30pm to 9:30pm how many hours did I work

Answers

Answer:

You worked 6 hours

Explanation:

Answer:

6 hrs

Explanation:

Mercury Inc. purchased equipment in 2019 at a cost of $497,000. The equipment was expected to produce 580,000 units over the next five years and have a residual value of $33,000. The equipment was sold for $253,600 part way through 2021. Actual production in each year was: 2019 = 83,000 units; 2020 = 133,000 units; 2021 = 67,000 units. Mercury uses units-of-production depreciation, and all depreciation has been recorded through the disposal date.
Required:
1. Calculate the gain or loss on the sale.
2. Prepare the journal entry to record the sale.
3. Assuming that the equipment was instead sold for $280,000, calculate the gain or loss on the sale.
4. Prepare the journal entry to record the sale in requirement 3.

Answers

Answer:

1.

Gain or (Loss) on sale = (17000)  Loss

2.

Cash                                                     253600 Dr

Accumulated Depreciation               226400 Dr

Loss on Sale                                        17000 Dr

         Equipment                                         497000 Cr

3.

Gain or (Loss) on sale = 9400 Gain

4.

Cash                                                    280000 Dr

Accumulated Depreciation              226400 Dr

         Gain on Sale                                      9400 Cr

         Equipment                                         497000 Cr

Explanation:

We first need to calculate the carrying value of the equipment at the date of disposal. The carrying value is calculated as follows,

Carrying value = Cost  -  Accumulated depreciation

Depreciation 2019  =  (497000 - 33000) * 83000 / 580000

Depreciation 2019  = 66400

Depreciation 2020  =  (497000 - 33000) * 133000 / 580000

Depreciation 2020  = 106400

Depreciation 2021  =  (497000 - 33000) * 67000 / 580000

Depreciation 2021  = 53600

Carrying value = 497000  -  [ 66400 + 106400 + 53600 ]

Carrying value = $270600

1.

Gain or (Loss) on sale = Sales price  -  Carrying Value

Gain or (Loss) on sale = 253600  -  270600

Gain or (Loss) on sale = (17000)  Loss

2.

Cash                                                     253600 Dr

Accumulated Depreciation                226400 Dr

Loss on Sale                                        17000 Dr

         Equipment                                         497000 Cr

3.

Gain or (Loss) on sale = Sales price  -  Carrying Value

Gain or (Loss) on sale = 280000  -  270600

Gain or (Loss) on sale = 9400 Gain

4.

Cash                                                    280000 Dr

Accumulated Depreciation                226400 Dr

         Gain on Sale                                      9400 Cr

         Equipment                                         497000 Cr

Which part of the citation below refers to the publisher?

“Projections Overview.” Occupational Outlook Handbook. Bureau of Labor Statistics, 29 March 2012. Web. 1 May 2013.

a)Bureau of Labor Statistics
b)Occupational Outlook Handbook
c)Projections Overview
d)Web

Answers

Answer:

A

Explanation:

the bureau of labor statistics is the company publishing the book, the occupational outlook handbook is what they published, projection overview is the specific chapter or part of the handbook. and web is just stating what form the citation is in

Bureau of Labor Statistics of the citation below refers to the publisher. “Projections Overview.” Occupational Outlook Handbook. Bureau of Labor Statistics, 29 March 2012. Web. 1 May 2013. The correct option is a.

What is the Bureau of Labor Statistics?

The U.S. Bureau of Labor Statistics gathers, examines, and disseminates trustworthy data on a variety of aspects of our economy and society. We track changes in employment, pay, worker security, output, and prices.

The Bureau of Labor Statistics (BLS) is a United States government agency that collects, analyzes, and disseminates statistical data on the American labor market and economy. The BLS is responsible for producing a wide range of economic and employment data, including the monthly Employment Situation Report, which provides the latest information on employment, unemployment, and wages in the United States.

Other key data produced by the BLS include the Consumer Price Index (CPI), which tracks changes in the prices of goods and services over time, and the Producer Price Index (PPI), which measures changes in the prices of goods and services purchased by businesses.

Thus, the ideal selection is option a.

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Which is an example of easy-access credit? $3000 monthly line of credit credit card with a $4,000 limit one-week payday loan for $350 $200,000 loan for a home

Answers

An example of easy-access credit is : ( C ) One-week payday loan for $350

What is an easy-access credit ?

An easy access credit is a type of credit which has a very high interest rate and a short term period. from the options listed an example of an easy-access credit is a one-week payday loan. because it has a short term duration and a high interest rate.

Hence we can conclude that An example of easy-access credit is : ( C ) One-week payday loan for $350

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A US company makes furniture and uses large amounts of exotic woods. How will quotas on imported wood affect he price of the product and the
marketing plans?

Answers

Answer: See explanation

Explanation:

A quota is simply referred to as a limited quantity of a product that can either be produced in a country or imported or exported under official controls. A quota is usually done to limit importation of goods and encourage local production.

Since the US company makes use of large amount of exotic goods which are usually imported, this will bring about a reduction in the supply of furniture as there'll be decrease in wood.

This will hence lead to an increase in price of the available furniture. This will certainly have a negative effect on the marketing plan of the company.

La adaptación al cambio ha permitido.
a. Que las personas desarrollen sus habilidades blandas
b. Que la especie sobreviva y evolucione
c. Que los líderes persuadan a sus colaboradores a seguirlos
d. Que el hombre maneje sus emociones

Answers

El principal efecto de la adaptación al cambio para la humanidad es la evolución y supervivencia.

Todos lo seres vivos, incluyendo a la especie humana tienen la capacidad de adaptarse a cambios. Los tipos de cambios más comunes incluyen:

Cambios en la disponibilidad de recursosCompetencia con otras especiesCatástrofes naturalesEnfermedades

Está capacidad de adaptación ha sido esencial durante cientos de años para la evolución y supervivencia de la humanidad. Aquí hay algunos ejemplos:

El cambio de una vida nómada a una vida sedentaria brindó a la humanidad la posibilidad de tener alimentos constantementePoblaciones que experimentaron desastres naturales pudieron sobrevivir adaptándose a nuevas condicionesLos cambios en la forma de sobrevivir ha llevado a la evolución. Por ejemplos el hombre evolucionó para saber como escribir, hacer fuego, construir casas, entre otros.

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Why is it important to handle customers issues using acknowledge, apoligize, and act?

Answers

Answer:

because

Explanation:

it is ur job example if u work at cashier and then your exchange is less then the costumer complains of course you need to apologize lest you get fired

When preparing the financial statements for the month ended January 31, accrued salaries owed to employees for January 30 and 31 were overlooked. The accrued salaries were included in the first salary payment in February. Indicate which items will be erroneously stated, because of failure to correct the initial error, on (A) the income statement for the month of February and (B) the balance sheet as of February 28.a. Income Statement

Answers

Answer:

A. Income Statement

Salaries Expense - OVERSTATED

Salaries will be overstated because they would be increased by salaries from January when they should not be as only expenses in February should be apportioned to February.

Net Income - UNDERSTATED

With salaries being higher than they should be, they will reduce the Net income more than they should which will lead to the net income being understated.

B. Balance Sheet

Salaries Payable - No effect

Stockholder's Equity - UNDERSTATED

Net income goes to Equity in the form of Retained earnings. If Net income is understated therefore, so also will Net Income be.

When preparing the financial statements for the month ended January 31, accrued salaries owed to employees

tock J has a beta of 1.38 and an expected return of 14.06 percent, while Stock K has a beta of .93 and an expected return of 11 percent. You want a portfolio with the same risk as the market. a.What is the portfolio weight of each stock? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., 32.1616.)b.What is the expected return of your portfolio? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Answers

Answer:

By definition, we know that Beta for market Portfolio is 1. By this, we need weighted average of J and K Beta as 1

1.38x + 0.93(1-x) = 1

1.38x + 0.93-0.93x = 1

0.45x = 0.07

x = 0.07/0.45

x = 0.16

So, we need 0.16 of J and 0.84 of K.

Weighted Average of J = 0.16 and K = 0.84.

Further Expected return of portfolio will be:

    Weight  Expected Return  Expected Return of Portfolio

J    0.16                 14.06                        2.25

K   0.84                   11                            9.24

Total Portfolio Expected Return        11.49

38. A log book used to record information about visitors who call in an organization is called A. Complimentary card B. Telephone directory C. Telephone pad D. Visitor's register E. Visitor's request form​

Answers

A logbook used to record information about visitors who call in an organization is called an Option D. Visitor's Register.

A visitor's register is an essential tool for maintaining security and professionalism in a workplace. It helps in keeping track of the people entering and leaving the premises, which aids in monitoring the flow of visitors and ensuring their proper identification.

A visitor's register typically includes columns for the visitor's name, contact details, purpose of visit, time in, time out, and the name of the person they are meeting. This information is valuable in case any follow-up is required or for emergency situations where it's crucial to know who is on the premises.

In contrast, a complimentary card (A) is a business card exchanged during formal introductions. A telephone directory (B) is a listing of telephone numbers organized by name or business. A telephone pad (C) is a notepad used for taking messages or notes during phone calls, and a visitor's request form (E) may be a document required to be filled out by visitors for specific purposes or access.

In summary, a visitor's register (D) is the correct term for a log book used to record information about visitors who call an organization. It helps maintain security, monitor visitor flow, and ensure proper identification of guests. Therefore, the correct option is D.

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1. Consider the market for compact discs. Suppose the following are the demand and supply
functions for compact discs.
Qa= 150 - 5P
Qs = 17 + 2P
a. Calculate the equilibrium price and equilibrium quantity.
b. What would happen if compact disc sellers priced compact discs at $20.00 per CD?

Answers

Answer:

a. The equilibrium price is $19 and the equilibrium quantity is 55 units.

b. The quantity will be 50 units at $20 price.

Explanation:

Given the demand function, Qa= 150 - 5P

The supply function, Qs = 17 + 2P

At the equilibrium point, the demand is equal to supply.

Demand = Supply

Qa = Qs

150 – 5P = 17 + 2P

150 – 17 = 2P+5P

133 = 7P

P = 19

Now insert P = 19 in Qa= 150 - 5P

Qa= 150 – 5(19)

Qa = 55

The equilibrium price is $19 and the equilibrium quantity is 55 units.

b. If the price is $20 then the quantity will be:

Qa= 150 - 5P

Qa= 150 – 5(20)

Qa = 50 units

The quantity will be 50 units at $20 price.

the process of deciding what should be done, how and when it should be done and who should do it is known as

Answers

Answer:

Planning.

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.

The four (4) main management activities are;

I. Organizing

II. Controlling

III. Motivating.

IV. Planning.

Planning can be defined as the process of developing organizational objectives and translating them into action plans or courses of action.

This ultimately implies that, planning is a strategic technique used by organizations to make an aggregate plan for its manufacturing (production) process typically ahead of time, in order to have an idea of the level of goods that are to be produced and what resources are required so as to reduce the total cost of production to its barest minimum.

This ultimately implies that, planning is a strategic process which typically involves deciding what should be done, how and when it should be done and who should do it.

B2B marketing requires a special, unique set?​

Answers

Take a position: Business-to-business marketing requires a special, unique set of marketing concepts and principles. ... B2B company demands for sophisticated sales management and an educated, knowledgeable, trained staff whose words and actions can have strong influence in the B2B buyers.

Exercise 1-6 (Algo) Traditional and Contribution Format Income Statements [LO1-6] Cherokee Incorporated is a merchandiser that provided the following information: Amount Number of units sold 12,000 Selling price per unit $ 17 Variable selling expense per unit $ 1 Variable administrative expense per unit $ 2 Total fixed selling expense $ 21,000 Total fixed administrative expense $ 13,000 Beginning merchandise inventory $ 11,000 Ending merchandise inventory $ 22,000 Merchandise purchases $ 89,000 Required: 1. Prepare a traditional income statement. 2. Prepare a contribution format income statement.

Answers

Answer:

The net operating income is $56,000

Explanation:

1. The traditional imcome statement:

2. The contribution format income statement:

Working Note:

\(\\\text{Sale revenue}=12,000*\$17=\$204,000\\\text{Variable selling expense}=12,000*\$1=\$12,000\\\text{Variable administrative expense}=12,000*\$2=\$24,000\\\text{Cost of goods sold}&=\text{Beginning merchandise inventory}+\text{Merchandise purchase}-\text{Ending merchandise Inventory}\\&=\$11,000+\$89,000-\$22,000\\&=\$78,000\\\text{Selling expense}=\$12,000+\$21,000=\$33,000\\\text{Administrative expense}=\$24,000+\$13,000=\$37,000\)

Exercise 1-6 (Algo) Traditional and Contribution Format Income Statements [LO1-6] Cherokee Incorporated
Exercise 1-6 (Algo) Traditional and Contribution Format Income Statements [LO1-6] Cherokee Incorporated

goods worth Rs. 75,000 cash : Purchased : Purchased goods worth Rs. 1,00,000 from Shyam on credit. : Purchased furniture worth Rs. 25,000, paid through cheque :Sold goods worth Rs. 40,000 cash​

Answers

In economics, goods are things that fulfill human needs and offer usefulness, such as to a customer buying a fulfilling product. It is usual practice to distinguish between transferable commodities and non-transferable services

Goods are any products, raw resources, or consumables that are sold to customers, businesses, or governmental organizations.

Services are tasks carried out for the benefit of the recipients, whereas goods are physical commodities offered to clients. Automobiles, home products, and apparel are a few examples of goods.

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Tyrell recently noticed that he was receiving several catalogs and direct mail advertisements than he had in the past even though he had not requested any of them. Which of the following best explains why this is happening?
A. Tyrell was a victim of online theft.
B. Tyrell gave his personal information to a business, which then traded it to other companies and these companies then began sending him catalogs.
C. All businesses routinely have all customers' personal information.
D. Tyrell's accountant gave his information to the direct mail marketers.

Answers

Answer:

B.

Explanation:

In this particular scenario, the most likely occurrence is that Tyrell gave his personal information to a business, which then traded it to other companies and these companies then began sending him catalogs. Most companies online tend to gather as much private information from their customers and eventually sell that information to larger corporations that use it in order to increase their sales. This is done in many forms such as finding out what a client population likes and dislikes, how much money they spend, day to day activities, etc. All this information allows corporations to target specific individuals, and advertise directly to them in order to make sales.


The competitive threat that outsiders will enter a market is weaker when

Answers

The competitive threat that outsiders will enter a market is weaker when the incumbents enjoy substantial cost advantages.

The competitive threat that outsiders will enter a market refers to the possibility that new firms will enter a market to compete against existing firms. It is the degree of competition in a market that is determined by the ability of other companies to enter the same market and offer similar goods or services at a lower cost.

There are certain factors that determine the competitive threat of outsiders, these are:Ease of Entry: When the cost of entering a market is low, the threat of new entrants is high and vice versa.Brand loyalty: In markets where consumers are more loyal to the existing brands, the competitive threat of new entrants is weaker.

Patents: In markets where incumbents hold many patents, the competitive threat of new entrants is weaker.Cost advantage: The competitive threat of outsiders is weaker when incumbents enjoy substantial cost advantages.Cost advantage is the answer to your question.

The competitive threat that outsiders will enter a market is weaker when incumbents enjoy substantial cost advantages.

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The postal service of St. Vincent, an island in the West Indies, recently introduced a limited edition deluxe souvenir sheet priced at $15.00 each. The initial market response was quite positive, with an increase in unit sales compared to the regular souvenir sheets. The postal service sold a total of 50,000 units of the deluxe souvenir sheet.
Based on the given information, calculate the following:
What was the postal service's increase (decrease) in total contribution margin when it sold 50,000 deluxe souvenir sheets at $15.00 each, compared to selling 80,000 regular souvenir sheets at $8.00 each?
By what percentage did the St. Vincent post office increase the selling price for the deluxe souvenir sheet compared to the regular souvenir sheets? Additionally, calculate the percentage increase in unit sales for the deluxe souvenir sheet compared to the regular souvenir sheets. (Round your answers to one-tenth of a percent.)
If the postal service wants to maintain the same total contribution margin per unit for the deluxe souvenir sheets as it did for the regular souvenir sheets, what selling price should they set for the deluxe souvenir sheet? (Round your answer to the nearest whole dollar.)
Calculate the number of deluxe souvenir sheets the postal service would need to sell at the price determined in question 3 to equal the total contribution margin earned by selling 80,000 regular souvenir sheets at $8.00 each. (Round your answer to the nearest whole number.)
Please show your calculations and provide explanations for each answer.

Answers

1. the postal service experienced an increase in total contribution margin of $7.00

2. The unit sales for the deluxe souvenir sheets decreased by 37.5% compared to the regular souvenir sheets.

3. The postal service should set the selling price for the deluxe souvenir sheet at $15.00

4. The exact number of deluxe sheets is 45.

Calculation of the increase (decrease) in total contribution margin:

The contribution margin is calculated as the selling price minus the variable cost per unit. Given the information, we have:

Selling price of regular souvenir sheets: $8.00

Selling price of deluxe souvenir sheets: $15.00

Number of regular souvenir sheets sold: 80,000

Number of deluxe souvenir sheets sold: 50,000

To calculate the increase (decrease) in total contribution margin, we need to compare the contribution margin of the two scenarios:

Contribution margin regular souvenir sheets = Selling price - Variable cost

= $8.00 - Variable cost

Contribution margin deluxe souvenir sheets = Selling price - Variable cost

= $15.00 - Variable cost

To find the increase (decrease), we'll subtract the contribution margin of regular souvenir sheets from that of deluxe souvenir sheets:

Increase (decrease) in contribution margin = Contribution margin deluxe - Contribution margin regular

= ($15.00 - Variable cost) - ($8.00 - Variable cost)

= $15.00 - $8.00

= $7.00

So, the postal service experienced an increase in total contribution margin of $7.00 when selling 50,000 deluxe souvenir sheets compared to selling 80,000 regular souvenir sheets.

2. Calculation of the percentage increase in selling price and unit sales:

Percentage increase in selling price = [(Selling price deluxe - Selling price regular) / Selling price regular] * 100

= [(15.00 - 8.00) / 8.00] * 100

= 87.5%

Therefore, the St. Vincent post office increased the selling price for the deluxe souvenir sheet by 87.5% compared to the regular souvenir sheets.

Percentage increase in unit sales = [(Unit sales deluxe - Unit sales regular) / Unit sales regular] * 100

= [(50,000 - 80,000) / 80,000] * 100

= -37.5%

The unit sales for the deluxe souvenir sheets decreased by 37.5% compared to the regular souvenir sheets.

3. Calculation of the selling price for the deluxe souvenir sheet to maintain the same total contribution margin per unit:

To maintain the same total contribution margin per unit, the selling price for the deluxe souvenir sheet should be equal to the selling price for the regular souvenir sheet plus the increase in contribution margin per unit:

Selling price deluxe = Selling price regular + Increase in contribution margin

= $8.00 + $7.00

= $15.00

So, the postal service should set the selling price for the deluxe souvenir sheet at $15.00 to maintain the same total contribution margin per unit.

4. Calculation of the number of deluxe souvenir sheets to be sold to equal the total contribution margin earned from selling 80,000 regular souvenir sheets:

Total contribution margin from selling regular souvenir sheets = Contribution margin regular * Number of regular sheets sold

= ($8.00 - Variable cost) * 80,000

To calculate the number of deluxe souvenir sheets to be sold, we'll set the total contribution margin equal to that of regular sheets and solve for the number of deluxe sheets:

Contribution margin deluxe * Number of deluxe sheets = Contribution margin regular * Number of regular sheets

($15.00 - Variable cost) * Number of deluxe sheets = ($8.00 - Variable cost) * 80,000

Simplifying the equation:

Number of deluxe sheets = (Contribution margin regular * Number of regular sheets) / (Contribution margin deluxe)

= ($8.00 - Variable cost) * 80,000 / ($15.00 - Variable cost)

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Wally's Walleyes wants to introduce a new product that has a start-up cost of $7,800. The product has a 2-year life and will provide cash flows of $4,500 in Year 1 and $4,300 in Year 2. The required rate of return is 15 percent. Should the product be introduced? Why or why not?

Answers

The calculated NPV is negative, indicating that the present value of expected cash flows does not exceed the start-up cost of the project. In other words, the project is expected to generate a net loss.

To determine whether Wally's Walleyes should introduce the new product, we can calculate the net present value (NPV) of the project. The NPV measures the present value of expected cash flows, taking into account the required rate of return.

To calculate the NPV, we need to discount the cash flows using the required rate of return (15 percent). The formula for calculating NPV is:

NPV = Cash Flow Year 1 / (1 + Required Rate of Return)^1 + Cash Flow Year 2 / (1 + Required Rate of Return)^2 - Start-up Cost

\(NPV = $4,500 / (1 + 0.15)^1 + $4,300 / (1 + 0.15)^2 - $7,800\)

\(NPV = $4,500 / 1.15 + $4,300 / (1.15)^2 - $7,800\)

NPV = $3,913.04 + $3,537.41 - $7,800

NPV = -$350.55

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