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2 years ago

2. What type of market is Huy Fong targeting with its sriracha sauce?

Business

1 answer:

Luda [366]2 years ago

4 0

Answers with Explanations:

1. What type of market is Huy Fong targeting with its Sriracha sauce?

"Huy Fong's Food Inc." is a company that sells Sriracha sauce made in California. It has also partnered with several companies in order to provide variety of products based on its official flavor.

Since Huy Fong is open to competition with other rivals, it is clear that the company is using the "monopolistic competition" type of market. Hung Fung is not the only company that sells sriracha sauce, other companies like Heinz and Tabasco are also selling the same sauce.

However, it has been branded as the most authentic and original of all. Such uniqueness of the Huy Fung Sriracha sauce makes it stand out from the rest. In this aspect, the company is monopolizing the competition.

2. Of the four categories of segmentation variables, which is most important to Huy Fong's segmentation strategy, and why?

Of the four categories of segmentation variables, "demographic" is the most important to Huy Fung's segmentation strategy. The company's target market are men and women who belong to the age range of 20-30 in the United States.

This is the specific population that the company is focusing on. These people are considered to be budgeting their money and in that sense, they'd be able to afford the sriracha sauce.

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For each of the following transactions for the Sky Blue Corporation, prepare the adjusting journal entries required on October 3

alexandr1967 [171]

Answer:

(a) Debit Deferred revenue $800

Credit Revenue $800

Being entries to recognize revenue earned as at October 31.

(b) Debit Insurance expense $400

Credit Prepaid Insurance $400

Being entries to record insurance expense incurred as at October 31.

Credit Accumulated depreciation $400

Being entries to record depreciation expense on machine as at October 31

Explanation:

Adjusting entries are required when transactions have occurred but are yet to be properly accounted for in the company's books.

(a) Cash collected in advance results in the debit in cash account and a credit to deferred revenue. When the revenue is earned, it is recognized by crediting revenue and debiting deferred revenue with the amount earned.

As at October 31, amount earned

= 1/3 × $2,400

= $800

Entries required

Debit Deferred revenue $800

Credit Revenue $800

Being entries to recognize revenue earned as at October 31.

(b) For amount paid in advance, the expense is recorded when incurred by debiting the expense account and crediting prepaid account to reduce the amount prepaid.

Expense incurred as at October 31

= 1/3 × $1,200

= $400

Entries required

Debit Insurance expense $400

Credit Prepaid Insurance $400

Being entries to record insurance expense incurred as at October 31.

(c) Depreciation expense is recognized as the fixed asset is used by debiting the expense account and crediting the accumulated depreciation account.

Since the annual depreciation is $4,800

Monthly depreciation = 1/12 × $4800

= $400

Entries required

Debit Depreciation expense $400

Credit Accumulated depreciation $400

Being entries to record depreciation expense on machine as at October 31

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2 years ago

You purchased 1000 shares of stock in Cumberland Software for $3 per share on January 1, 2006. Over the next four years, you rec

Slav-nsk [51]

Answer:

a) Total gross return = 459.3%

b) Average annual return = $4,195

Explanation:

Let's begin by listing out the information given us:

Number of shares = 1000, purchase price = $3 per share,

dividend = 7 cents = $0.07 per share per year,

time = 4 years, sale price = $16.50 per share,

brokerage commission = 4%

Cost of shares purchased = number of shares * purchase price

Cost = 1000 * 3 = 3,000

Cost = $3,000

I purchased shares worth $3,000 on January 1, 2006

Total dividend received = dividend * number of shares * time

Total dividend = 0.07 * 1000 * 4 = $280

Over the course of 4 years, I received $280 in dividend

Price of share sale = number of shares * sale price

Price of share sale = 1000 * 16.50 = $16,500

brokerage commission = 4% of Price of share sale

brokerage commission = 0.04 * 16500 = $660

a) Total gross return = (dividend + price of share sale - cost of shares purchased) ÷ cost of shares purchased

Total gross return = (280 + 16500 - 3000) ÷ 3000

Total gross return = 13780 ÷ 3000 = 4.593

Total gross return = 4.593 * 100%

Total gross return = 459.3%

This means the investment made a profit of over 400% (four times the amount spent in purchasing the shares)

N.B: Total gross return does not include fees and expenses such as brokerage costs

b) Average annual return = Returns during the specified period ÷ time

Returns during the specified period = dividend + price of share sale = 280 + 16500 = $16,780

Average annual return = 16780 ÷ 4 = 4195

Average annual return = $4,195

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2 years ago

A one-time error in the application of the lower of cost or market/net realizable value (LCM/NRV) rule in the current period dis

Kipish [7]

Answer:

A one-time error in the application of the lower of cost or market/net realizable value (LCM/NRV) rule in the current period distorts financial results for the current accounting period:

a. only.

Explanation:

The lower of cost or market (LCM/NRV) method states that when valuing a company's inventory use the historical cost or the market value, whichever is lower. The historical cost refers to the cost at which the inventory was purchased. The market value is the current price. The implication is that while the historical cost remains static, the market value shifts over time.

Therefore, if there is a one-time error made in the use of the LCM/NRV rule, it only affects the current period. The next accounting period will restart the process of comparing the historical costs with the market value, thus obviating the need to repeat the error.

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2 years ago

The following transactions are February activities of Swing Hard Incorporated, which offers indoor golfing lessons in the northe

Greeley [361]

Answer:

cash 15,000 debit

accounts receivable 15,000 credit

cash 150 debit

gift card liaiblity 150 credit

accounts receivable 4,000 debit

services revenue 4,000 credit

cash 2,250 debit

unearned revenue 2,250 credit

accounts receivable 125 debit

service revenues 125 credit

Explanation:

we increase cash and decrease the customers accounts

we record the cash proceeds and use a liability for the obligation in the near future to provide services to a customer

we recognize the revenue and increase our accounts receivable

as the colleciton is in advance the revenue is not earned. this is a liability as we now have the obligation to perform services in the near future

we must match the revenue whn the time it occurs and that time was february not march.

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2 years ago

Walkane Juices is planning to launch a line of flavored beverages. It encourages consumers to take a $1,000,000 Taste Challenge.

statuscvo [17]

Answer:

use promotions to get consumers to try the brand

Explanation:

Based on the scenario being described within the question it can be said that Walkane Juices is an underdog which is trying to use promotions to get consumers to try the brand. This is done with the hopes that the promotion will attract a large amount of individuals who may otherwise never try the brand, and once they try the brand they may like it and decide to start buying the product. Thus increasing sales for the company.

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2 years ago