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Shtirlitz [24]
2 years ago
5

A large beer company previously had a yearly budget of $50 million per year for advertising but increased the budget to $60 mill

ion in order to run a commercial during the Super Bowl. That year revenues increased by 1%. Should the beer company continue with the increased advertising budget?
Business
1 answer:
ella [17]2 years ago
4 0

Answer:

Yes they can continue advert but only if the 1% is equivalent or greater than the 10$ spent on advert.

Explanation:

There is an increase in revenue by 1%, this indicates that a number of people were attracted to the product because of the advert. With this the company might do better with consistent advert in subsequent year. They can change the channel of advert, improve on the quality of advert or change the time and location of the advert. Infarct, the 1% increment in revenue can be up to 20$ since we are not sure of the exact company's revenue. But if the 1% is far lower than the amount spent, the company can seek advice from professionals.

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.......Oferta y Demanda .........
Alexandra [31]

Answer:

En tu país se ha desatado un problema de salud asociado a un coronavirus. Como resultado de la situación, el número de consumidores que desean adquirir desinfectante de manos ha aumentado en esa temporada.

La demanda por desinfectante aumenta, mientras que la oferta también aumenta pero no al mismo ritmo, ya que las empresas deben ajustar su producción y esto toma tiempo. Esto ocasiona que la cantidad de equilibrio sea menor a la demandada, lo que incrementa el precio del desinfectante.

La curva de demanda se mueve a la derecha (aumenta), mientras que la curva de oferta se mantiene.

Luego de un reciente fenómeno atmosférico, una gran cantidad de la cosecha de frutas fue destruida simultáneamente con la llegada de la alta temporada de eventos gastronómicos.

La oferta de frutas disminuye de forma drástica, al tiempo que la demanda aumenta. Esta baja cantidad y alta demanda ocasiona un gran aumento del precio de las frutas.

La curva de oferta se mueve a la izquierda (disminuye), mientras que la curva de demanda se mueve a la derecha (aumenta).

Los costos asociados al consumo de energía eléctrica en el proceso de producción se han reducido considerablemente, en conjunto con la entrada al mercado de 10 nuevas empresas dedicadas a la producción de alimentos.

La oferta de alimentos aumenta debido a la nuevas empresas, y a los menores costos de energía. La demanda no necesariamente aumenta al mismo ritmo, lo que genera que la oferta probablemente sea más alta que la demanda, haciendo que el precio de los alimentos sea más bajo.

La curva de oferta se mueve a la derecha, y la de demanda se mantiene estable.

3 0
2 years ago
Initially, Stacy earns a salary of $300 per year and Virginia earns a salary of $200 per year. Stacy lends Virginia $100 for one
lina2011 [118]

Answer:

The answer is "$306 and $204".

Explanation:

Given value:

Stacy salary = $300

Virginia salary = $200

The nominal value is 2%

Calculating the Stacy salary = 300 \times \frac{2}{100}

                                              = 3 \times 2 \\\\ =6

\text{ Stacy salary = slaray+ percent value}

                    = \$ 300 + \$ 6\\\\= \$ 306 \\

Calculating the Virginia salary = 200 \times \frac{2}{100}

                                              = 2 \times 2 \\\\ =4

\text{ Virginia salary = slaray+ percent value}

                        = \$ 200 + \$ 4\\\\= \$ 204 \\

7 0
2 years ago
The price tag on a tennis ball in 1975 read $0.10, and the price tag on a tennis ball in 2005 read $1.00. The CPI in 1975 was 52
erma4kov [3.2K]

Answer:

a) $0.27, so tennis balls were cheaper in 1975.

Explanation:

This is a question that has to do with the time value of money & includes accounting for inflation.

Let's list out the given parameters us:

Nominal price (1975) = $0.10, CPI (1975) = 52.3, Nominal price (2005) = $1.00, CPI (2005) = 191.3

We want to know how much the tennis ball cost in 1975 dollars, hence, we make 1975 our base year. The calculation follows below:

Real price (2005) = Nominal price (2005) * CPI (1975) ÷ CPI (2005)

Real price (2005) = 1.00 * 52.3 ÷ 191.3

Real price (2005) = $0.2734

Real price (2005) = $0.27

The calculation reveals to us that a 2005 tennis ball cost $0.27 (in 1975 dollars). Which means that a tennis ball in 2005 is more costly than it did in 1975.

Hence, option A is the correct answer

5 0
2 years ago
Read 2 more answers
Elmdale Company has a machine that affixes labels to bottles. The machine has a book value of $80,000 and a remaining useful lif
AveGali [126]

Answer and Explanation:

The preparation of the analysis  showing whether the old machine should be retained or replaced is presented below:

Particulars           Retained equipment       Replace equipment     Change in the net income

Variable cost        $1,560,000                 $1,230,000                $330,000

                  ($520,000 × 3 years)       ($410,000 × 3 years)

Cost of the new

machine                                                         $300,000                        -$300,000

Net change                                                                                               $30,000

As we can see the amount comes in positive which reflects that the machine should be replaced

3 0
2 years ago
Columbia Gas Company’s (CG) current capital structure is 35% debt and 65% equity. This year CG has earnings after tax of $5.31 m
Reil [10]

Answer:

Current dividend per share paid (Do)

= <u>Total dividend </u>

  No of shares outstanding

= <u>$1,600,000</u>

   1,000,000 shares

= $1.60 per share

Current market price = $31

Growth rate = 8%  = 0.08

Ke = Do<u>(1 + g)</u>  + g

               Po

Ke = $1.60<u>(1 + 0.08)</u> + 0.08

                     $31

Ke = 0.1357 = 13.57%

Interest rate on borrowing (Kd) = 10%

Tax rate (T) = 40% = 0.40

WACC = Ke(E/V) + Kd(D/V)(1-T)

WACC = 13.57(65/100) + 10(35/100)(1 - 0.4)

WACC = 8.82 + 2.10

WACC = 10.9%

The correct answer is A

Explanation:

In this case, we need to calculate cost of equity. The cost of debt has been given, which is the interest rate on long-term borrowing (10%). Since the debt proportion in the capital structure is 35% and equity proportion is 65%, it implies that the value of the firm is 100%.  Then, WACC is the aggregate of cost of each stock and the proportion of each stock in the capital structure.

6 0
2 years ago
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