What is the overriding goal of a customer relationship management system?

A bank with a two-year horizon has issued a one-year certificate of deposit for $50 million at an interest rate of 2 percent. Wi

IRINA_888 [86]

Explanation:

The bank runs the danger that just before the second year, the short-term interest rate will increase, increasing its Lending value, but leaving untouched the interest income the bank gets from either the Treasury bill.

Annual interest revenue of 0.04* $50 million= 2 million and annual interest costs for the bank (0.02)* $50 million= 1 million, between 2 per cent to 4 per cent for the Treasury note.

The bank makes a profit of $2 million – $1 million = $1 million. If the interest rate rises 1 percent, the bank’s profit falls to

((0.04)* $50 million) – ((0.03) * $50 million) = $500,000.

7 0

2 years ago

Matthew's Fish Fry has a monthly target operating income of $6,600. Variable expenses are 80% of sales and monthly fixed expe

Natasha2012 [34]

Answer:

The correct answer is C

Explanation:

Break even Sales is computed as:

Contribution margin ratio = Fixed Cost / Break even Sales

where

Contribution margin ratio = 1 - Variable expense of 80%

= 20%

Fixed Cost is $840

30% = $840 / Break even Sales

Break even Sales = $840 / 20%

= $4,200

The actual sales is computed as:

Actual Sales = (Fixed Cost + Desired Profit) / Contribution margin ratio

= ($840 + $6,600) / 20%

= $7,440 / 0.2

= $37,200

The margin of safety is computed as:

Margin of Safety = Actual Sales - Break even sales

= $37,200 - $4,200

= $33,000

5 0

2 years ago

Vaughn Corporation acquires a coal mine at a cost of $460,000. Intangible development costs total $115,000. After extraction has

Elenna [48]

Answer:

Depletion expense A/c Dr $84,525

To Accumulated depletion A/c

(Being the depletion expense for the first year is recorded)

Explanation:

The journal entry is presented below:

Depletion expense A/c Dr $84,525

To Accumulated depletion A/c

(Being the depletion expense for the first year is recorded)

The computation is shown below

First we have to compute the depletion per ton which is calculated below:

= (Acquired cost of coal mine + Intangible development costs + fair value of the obligation - Sale value) ÷ (Number of estimated tons of coal extracted)

= ($460,000 + $115,000 + $92,000 - $184,000) ÷ (4,600 tons)

= $105

Now if 805 tons are extracted in first year, so the depletion would be

= 805 tons × $105

= $84,525

8 0

2 years ago

Which process helps ensure return on investment from sports marketing?

Ahat [919]

The answer for this is B

7 0

2 years ago

Read 2 more answers

How do scarce resources influence you personally? What impact does this have on your financial management?

tankabanditka [31]

Scarce resources encourage me to spend time thinking about how I use the limited amount of money and materials that have so that I may use them in a matter that best guarantees that I will get the most satisfaction out of it. Since resources also include time, they also define how much I time I spend doing which activities, and steer me to put in a certain degree of work.

Since there is a limited supply of resources, the great wheel that facilitates the cycle that these such resources use, known as money, must also be limited. How I manage my finances (money and resources). Knowing this, I am encouraged to invest such resources into more efficient outlets to attain the most powerful results out of my few resources.

3 0

2 years ago