Answer:
c. $112,800
Explanation:
The computation of operating income is shown below:-
= (Contribution margin of blink division × Increase sales percentage) - Fixed cost of blink division - Allocated common costs of blink division - Allocated common costs of blur division
= ($218,000 × 135%) - $93,000 - $48,000 - $40,500
= $294,300 - $93,000 - $48,000 - $40,500
= $112,800
Answer:1. Advertising
2. D. They have more information about the product and the increased promotions give the consumers deals they otherwise would not have experienced.
Explanation:
The war between Pepsi and Coca- Cola is an advertisement war in which each is trying to gain the consumers patronage by proving the superiority of their product over others. It has nothing to do with research, price nor efficiency.
The advertisement provides more information on the product to the consumers and promotion offer like free gift which they hitherto would not have enjoyed.
Marketing or advertising cost are not passed to consumers and the advertisement been interesting adds little or no value to the consumers.
Answer:
C. If consumers are informed about products, prices, and costs across countries
D. If consumers are particularly important to the seller
YES. As having a complete information will allow for arbitrage between areas and if they are a big fish of the seller business the seller will be less likely to roll-over the consumer in negociation.
Explanation:
A. If switching to competing brands or substitutes is expensive
NO. If switching is expenses then, the exit-barrier is higer thus, less bargaining power as we are less likely to leave
E. If consumer demand is rising
NO. Is demand rises then the supplier will have bargain power as it has where to sale the product if we leave
Answer:
The current stock price of Jersey Kids Corp in 2021 is expected to be $39.02.
Explanation:
The current stock price of Jersey Kids Corp in 2021 can be calculated using the formula for the dividend discount model as follows:
P2021 = D2022 / (r - g) ............................ (1)
Where,
P2021 = current stock price in 2021 = ?
D2020 = Annual dividends per share paid in 2020 = $3.00
D2021 = Annual dividends per share paid in 2021 = D2020 * (1 + g) = $3 * (1 + 0.02) = $3.06
D2022 = Annual dividends per share paid in 2022 = D2021 * (1 + g) = $3.06 * (1 + 0.02) = $3.1212
r = required return = 10%. or 0.10
g = growth rate = 2% = 0.02
Substituting the values into equation (2), we have:
P2021 = $3.1212 / (0.10 - 0.02)
P2021 = $3.1212 / 0.08
P2021 = $39.02
Therefore, the current stock price of Jersey Kids Corp in 2021 is expected to be $39.02.
