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iren2701 [21]
2 years ago
8

A customer, who needs to drive to work in a Wisconsin winter, has a critical need to use the product Ice Melt. For him as a cons

umer Ice Melt has an inelastic demand because he needs to drive to work. Which type of factor is affecting elasticity in this scenario?
Business
1 answer:
Blizzard [7]2 years ago
5 0

Answer:

Urgency / Postponement leads to customer inelastic demand of ice melt.

Explanation:

Elasticity of demand is responsive change in demand of good, due to change in price. Formula = % change in demand / % change in price

Factors Affecting Price Elasticity of Demand : Nature of commodity, Income, substitutes availability, time period, urgency / postponement, share in total expenditure,

Inelastic Demand is when demand responds proportionately less to price change. % change in demand < % change in price

Case 'Customer critically needs ice melt to drive to work' : This has inelastic demand i.e demand less respondent to price changes (he will buy that at high price too). Such because of the urgency of this demand & less scope of its postponement.

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Which of the following statements is not true of a strategic inflection point?
Elanso [62]

Answer:

The correct anwer is E) A new CEO is an example of a strategic inflection point.

Explanation:

The statement that "A new CEO is an example of a strategic inflection point" is false since to determine a strategic inflection point we rely on other factors that affect companies such as the power of competitors, the power of customers, the power of potential competitors, the power of suppliers and the power of substitutes.

For example, if my product or service is exceeded 10 times more by the competition in quality or price; we are talking about a strategic inflection point.

8 0
2 years ago
Connie stepped in to assist her friend Fred conduct his research plan for his business. He is trying to see where he should open
Illusion [34]

Connie's next step should be

Not - go back and revisit her plan objectives

Maybe - Conduct primary research and analyze Fred's current customers.

<h3><u>Explanation:</u></h3>

It is very essential for an entrepreneur who decides to start a new business to have a business plan that helps him in setting up the businesses in the right track and usage of funds in an effective manner. A business plan acts as a blue print of a new business and the objectives and resource utilization.

In the scenario give, Fred decides to start a new boutique and has conducted researches geographic locations and the type of boutiques supported by the demography. She must not then go back and review her plan objectives as she has decided to start it with a good plan and she may conduct a primary research about the  current customers of him.

5 0
2 years ago
Giglio Inc. has the following information for the previous year: Net income = $400; Net operating profit after taxes (NOPAT) = $
forsale [732]

Answer:

the free cash flow for the current year is zero.

Explanation:

Net income = $400; Net operating profit after taxes (NOPAT) = $500; Total assets = $2,000; and Total operating capital = $1700

Net income = $800; Net operating profit after taxes (NOPAT) = $700; Total assets = $2,300; and Total operating capital = $2,100.

current year:

operating profit after taxes                             700

Capital expenditures:        2,000 - 2,300 =  (300)

working capital expeneses 1,700 - 2,100  = (400)

free cash flow:                                                       0

As assets increase the company use cash to increase his assets

Also, the operating capital increase the comapny pa debts, extend his collection cycle or any other desition which, increases his cahs needs.

Therefore the free cash flow for the year is zero.

7 0
2 years ago
A stadium estimates its administrative costs for three sponsorships to be $12,000, $27,000, and $63,000. Revenue from the sponso
densk [106]

you'll have 59.2% profit margin (148,000)

can i get brainlist

8 0
2 years ago
Peppercorn Inc. has outstanding nonconvertible preferred stock​ (cumulative) that pays a quarterly dividend of​ $1.00. If your r
Morgarella [4.7K]

Answer:

Quarterly dividend = $1.00

Required rate of return per annum = 8% = 0.08

Quarterly rate of return = 0.08/4 = 0.02

Current market price = <u>Quarterly dividend</u>

                                      Quarterly required rate of return

                                   = $1.00

                                       0.08

                                   = $12.5      

The amount to pay for 1,000 shares = $1.25 x 1,000 = $12,500

                                                                                                                                                                                                                                                                                                                                                                                                                                                       

Explanation:

The current market price is calculated as quarterly dividend paid divided by quarterly required rate of return. Then, we will multiply the current market price by the number of shares in order to determine the total amount to pay for the shares.

5 0
2 years ago
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