Answer:
The correct answer is then it has required reserves of $110 and holds excess reserves of $190.
Explanation:
According to the scenario, computation of the given data are as follows:
Total deposit = $1,000 + $100 = $1,100
So, we can calculate the total reserve required by using following formula:
Total reserve required = 10% × Total deposit
= 10% × $1,100 = $110
And Previous excess = $100
Current access = $90
So, Excess reserve = Previous excess + Current access
= $100 + $90
= $190
Answer:<em> The correct option in this case is (c).</em><u><em> i.e. Economic profits induce firms to enter an industry and losses encourage firms to leave</em></u>
Economic profits is the difference between total revenues and total costs excluding opportunity cost.
For a instance when a firm generates economy profits then in that scenario it will be profitable to continue and expand .
Answer:
Brady will receive $850,000
Carson will receive $250,000
Addie will receive $100,000
Creditors will receive $300,000
Explanation:
The partnership is being dissolved and $1,500,000 will be distributed as follows:
$300,000 to pay debts to creditors
$450,000 to pay for Brady's loan
$300,000 for Brady's initial contribution
<u>$150,000 for Carson's initial contribution</u>
$300,000 are left to be divided equally between the three partners:
- Brady will receive: $450,000 + $300,000 + $100,000 = $850,000
- Carson will receive: $150,000 + $100,000 = $250,000
- Addie will receive $100,000
Answer:
C
Explanation:
Since it is a deal on luxury cars, it is expected that the amount of money that will be allocated to start it by Tiyona motors would be high. Also, before Tiyona motors decided it would be running this kind of investment, there had been other players in the game. As a green horn in the luxury car business, it is expected that there would be a huge competition from pre-existing companies who have been in the game before Tiyona motors.
The above explanation is the reason why option C is the correct answer
Answer:
With the given scenario, the only plan that will help Molly with her marketing goal to generate more sales is investing $40,000 to generate 2,000 conversions and a CPA of $20.
This is the only plan that actually generates more sales compared to her current marketing campaign with a total investment of $25,500, 1,500 conversions, and a CPA of $17.
Other plans given in the scenario do not actually generate more sales. And they also do not take into consideration Molly's willingness to increase CPA and investment in order to clear her outstanding stock.
However, the additional cost of acquiring 500 new customers (2,000 minus 1,500) at an additional cost of $`14,500 ($40,000 minus $25,500) with an incremental CPA of $29 ($14,500/500) is very exorbitant. This cost must be compared with the Customer Lifetime Value or CLV. This implies that consideration must be given to monitor if the new customers are there to make only a one-time purchase.
Explanation:
CPA or Cost per Acquisition is a marketing metric to gauge the cost of acquiring new customers who convert to patronize the firm's product.
It is an important measure that helps to channel marketing campaigns towards those customers that add value to the business.
