Answer:
The bargaining power of customers
.
Explanation:
As Bethany wants to buy a pair of designer boots and to find the best price, she searches the Internet and compares prices among the eight sites that sell the boots, she is using the bargaining power of buyers or customers from the Porter's five competitive forces. This force illustrates that customers are definitely have many options available with them for buying a particular product. Customers will be having much power when the number of available options increases because it becomes very easy for the customers to choose from those options or they can switch to some other seller quite easily and quickly in this case. Conversely, consumers will have less power when there are only fewer options present in the market. In this case Bethany has 8 different web sites present in front of her and with the single click of mouse button and flick of her fingers, she can easily compare the prices and options, that's why she can practice her bargaining power.
Answer: $35,000
Explanation:
The payments of $1,033.34 at the end of every month is a constant amount which makes it an annuity.
Present value of annuity:
= Annuity * (1 - (1 + rate) ^-no. of periods) / rate
Rate needs to be made a monthly rate:
= 4%/12
= 4/12%
= 1,033.34 * ( 1 - ( 1 + 4/12%) ⁻³⁶/ 4/12%
= $35,000
Purchase price = Down payment + Present value of annuity
= 4,000 + 35,000
= $39,000
Answer:
Value of Investment= Principal (1+Rate of return)^Number of periods
For the first investment the principal is 7,500, the rate of return is 11.5% and the number of periods are 5 so the value of the investment will be
7,500 (1+0.115)^5=12,925
For the second investment the principal is 5,000, the rate of return is 11.5 and the number of periods are 3 as the 5,000 is invested two years from today.
5,000*(1+0.115)^3=6,931
Total value of investments = 12,925 +6,931 = $19,856
Answer:
The cross over is at 1800 units annually. for volumes over 1800, the process focus is cheaper.
Explanation:
The crossover is at 1800 units annually.
For volumes under 1800, the process focus is cheaper and lesser; for volumes that are over 1800 units, the repetitive manufacturing focus is cheaper and lesser
Fixed cost ÷ variable cost
$90000÷50 =$1800
$9,000÷5=$1800
Answer:
The entries are as follows
To record estimated returns on Sales
Debit: Sales Refund Payable Account $131,400
Credit: Accounts Receivables $131,400
To record estimated Cost of Sales returns
Debit: Inventory Returns Estimated Account $77,700
Credit: Inventory on Sales on Returns $77,700
Explanation:
To derive the figure for Sales Refund payable for the year
6% of $2,190,000
= 
= $131,400
To derive the figure for Inventory cost on Sales Refund payable for the year
6% of $1,295,000
= 
= $77,700
