Conflicts of interest, a lack of transparency, and the possibility of causing harm to customers are examples of the situation's ethical dilemmas.
What is Conflicts of Interest?A person or organization has a conflict of interest when they are involved in multiple interests, one of which could influence the motivation for the other.
2. This situation may have an impact on the clients, financial advisor, supervisor, and mutual fund companies that are part of the arrangement.
3. A person in this situation might take the following actions:
Refusing to recommend the mutual funds on the "recommended list," and providing the supervisor with an explanation for your decision.Revealing to clients that the shared assets on the "suggested list" are paying the organization and the boss in view of a point framework.seeking guidance on how to deal with the situation from a professional organization or compliance department.5. The following are examples of ethical tests that could influence a decision:
Hurt test: Clients may be misled into making investments that are not in line with their financial goals or risk tolerance if the mutual funds are recommended to them without the conflict of interest being disclosed.Validity check: Even though mutual funds paying the company to put them on the list might not be against the law, not telling customers this information could be against regulatory requirements.To know more about Conflicts of Interest, visit:
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CWB Inc. produces stuffed bunnies. The company normally produces and sells 78,000 stuffed bunnies each year at a selling price of $50 per unit. The company's unit costs at this level of activity are given below:
Direct materials $9.30
Direct labor 8.00
Variable manufacturing overhead 2.00
Fixed manufacturing overhead 6.00 ($468,000 total)
Variable selling expenses 1.50
Fixed selling expenses 6.00 ($468,000 total)
Total cost per unit $32.80
An outside manufacturer has offered to produce stuffed bunnies and ship them directly to CWB's customers. If CWB Inc. accepts this offer, the facilities that it uses to produce stuffed bunnies would be idle; however, fixed manufacturing overhead costs would be reduced by 30%. Because the outside manufacturer would pay for all shipping costs, the variable selling expenses would be only three-fourth of their present amount. What is the maximum price per unit quoted by the outside manufacturer that CWB Inc. is willing to accept? (Round your
answer to 2 decimal places.)
If the company were willing to increase its fixed selling expenses by $139,000, it could increase its annual sales by 20% above the current 78,000 units.
How much does a unit cost?The term "cost per unit" encompasses both the variable and fixed costs of producing and delivering a single unit of any product to a final consumer. Keeping track of your cost of goods sold provides context for pricing and ensures profit generation. Cost per unit provides insight into the costs associated with producing a single item, receiving new inventory, storing it, fulfilling it, and shipping it. By separating the expense per unit, you can distinguish shortcomings that are driving up costs, thusly lessening overall revenues.
A low cost per unit is a sign of efficient production and logistics, which guarantees profit per sale. Obviously, quality assumes a part, as better or premium merchandise regularly cost more to create than less solid or less expensive materials.
If the company were willing to increase its fixed selling expenses by $139,000, it could increase its annual sales by 20% above the current 78,000 units.
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Liquidity management Bauman Company’s total current assets, total current liabil-
ities, and inventory for each of the past 4 years follow:
LG 3
Item 2009 2010 2011 2012
Total current assets $16,950 $21,900 $22,500 $27,000
Total current liabilities 9,000 12,600 12,600 17,400
Inventory 6,000 6,900 6,900 7,200
Inventory turnover 2009 2010 2011 2012
Bauman Company 6.3 6.8 7.0 6.4
Industry average 10.6 11.2 10.8 11.0
a. Calculate the firm’s current and quick ratios for each year. Compare the resulting
time series for these measures of liquidity.
b. Comment on the firm’s liquidity over the 2009–2010 period.
c. If you were told that Bauman Company’s inventory turnover for each year in the
2009–2012 period and the industry averages were as follows, would this infor-
mation support or conflict with your evaluation in part b? Why?
Answer:
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Sanford bought two shirts for $24.95 each and a pair of pants for $39.95. He paid with a $100 bill. Assuming he paid no sales tax, how much did he receive?
Sanford spent $24.95 each on two shirts and $39.95 on a pair of slacks. He used a $100 bill as payment. Don't forget to convert percentages to decimals. $116 .
What does "percent" mean?If we need to calculate a percentage of a number, we should divide it by its entirety and then multiply it by 100. The proportion therefore refers to a component per hundred. Per 100 is what the word percent means. The letter "%" stands for it.
What do symbols mean?Symbols are used to communicate other thoughts and opinions and might take the shape of words, sounds, movements, ideas, or visual representations. A symbol can be almost anything, including an item, a mark, a image, a character, a word, or a location. Metaphor is a literary device.
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Carmen SanDiego, a U.S. citizen, is employed by General Motors Corporation, a U.S. corporation. On April 1, 2020, GM relocated
Carmen to its Brazilian operations for the remainder of 2020. Carmen was paid a salary of $131,000 and was employed on a 5-day-
week basis. As part of her compensation package for moving to Brazil, Carmen also received a housing allowance of $27,750.
Carmen's salary was earned ratably over the 12-month period. During 2020 Carmen worked 260 days, 195 of which were in Brazil and
65 of which were in Michigan.
How much of Carmen's total compensation is treated as foreign source income for 2020? (Do not round intermediate calculations.)
Total foreign source compensation
The amount of Carmen's total compensation treated as foreign source income for 2020 is $118,687.50
How much of Carmen's total compensation is treated as foreign source of incomeTo determine how much of Carmen's total compensation is treated as foreign source income for 2020, we need to calculate the portion of her salary and housing allowance that was earned while she was working in Brazil.
First, we need to calculate the portion of her salary that was earned in Brazil:
Salary earned in Brazil = (195/260) x $131,000 = $97,875
Next, we need to calculate the portion of her housing allowance that was earned in Brazil:
Housing allowance earned in Brazil = (195/260) x $27,750 = $20,812.50
Therefore, the total foreign source compensation for Carmen in 2020 is:
Total foreign source compensation = Salary earned in Brazil + Housing allowance earned in Brazil
= $97,875 + $20,812.50
= $118,687.50
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Why Invest Signature Global City 93 Gurgaon?
Signature Global City 93, Gurgaon is a good option to invest in.
Signature Global is the Largest real estate development company in Delhi-NCR, focusing on affordable and mid-segment housing (LIG and MIG) in terms of units supplied (in the below Rs. 80 lakh price category) between 2019 and 2021 with a market share of 19% provide “value homes” with attractive designs and amenities.
It offers you independent luxury floors with lavish amenities at one of the prime locations in Gurgaon. This project has a futuristic location and direct connectivity to all the necessary things and essentials required for a luxurious living.
The _________________________ensures that all vendors who wish to supply are capable of providing quality goods or services, and have technical, commercial, and financial ability, adequate equipment and facilities, good service performance, or any other measures that will ensure quality and reliability in every purchase made.
a.Vendor Accreditation Program
b.Vendor Development
c. Supplier Development
d. Finish Product development
Why might Sandwiched criticism be a poor approach
Answer:
Manipulation
Explanation:
The main issue with the sandwich approach is that it’s actually manipulation. (not sure if this is what you meant)
When were two bills, designed to provide additional legal protection for fashion designers and others in the fashion industry, introduced to the House and Senate?
Fall 2012
Spring 2012
Winter 2011
Summer 2011
In the Fall of 2012, two bills designed to provide additional legal protection for fashion designers and others in the fashion industry, the Innovative Design Protection and Piracy Prevention Act, were introduced to the House and Senate.
The bills aimed to address the issue of design piracy, which is a common problem in the fashion industry. Design piracy occurs when a design is copied or imitated without the designer's permission, often resulting in lost sales and revenue for the original designer. The Innovative Design Protection and Piracy Prevention Act would have provided legal protection for fashion designs that meet certain criteria, including originality and novelty. Under the proposed legislation, designers would have been able to obtain three years of legal protection for their designs, allowing them to bring lawsuits against individuals or companies that copy or imitate their designs without permission. The bills were supported by many in the fashion industry, who argued that design piracy was a significant problem that needed to be addressed. However, the bills were also criticized by some who argued that they could stifle innovation and creativity in the fashion industry by limiting the ability of designers to draw inspiration from one another. Despite support from many in the fashion industry, the Innovative Design Protection and Piracy Prevention Act was ultimately not passed into law. The bills faced opposition from some members of Congress and other groups, and were never brought to a vote in either the House or Senate.
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Economic forces within the business environment reflect ongoing tension between the freedom to build a business and restraints imposed by government regulation
A. True
B. False
Answer:
a
Explanation:
What is an example of a digital asset? O A. A store coupon OB. A hotel reservation OC. Airline frequent flier miles OD. A check
Answer: A check because the money you withdraw or deposit is transferred through the online world, making it an online asset.
What is the most important factor a person should consider when creating a
payment plan and deciding which debts to pay first?
OA. Types of loans
OB. Automatic payments
OC. Credit scores
OD. Interest rates
Answer:
The most important factor a person should consider when creating a payment plan and deciding which debts to pay first is the interest rates on the loans. Therefore, the correct option is OD.
It is generally recommended to prioritize paying off the loans with the highest interest rates first, as these loans will accrue more interest over time and cost more in the long run. By paying off high-interest loans first, a person can save money on interest and potentially pay off all of their debts faster.
If 32 oz of cheese if $9.98 how much would 4 oz of that cheese be
If the cost of 32 oz of cheese is $9.98, 4 oz would cost $1.25 (rounded to the nearest cent).
What transpires if the market has an excess of wheat?So there would be a surplus since there would be more supply than demand. The oversupply of wheat would activate market forces. In order to sell more wheat, wheat farmers would cut the price.
Would the supply be affected if the price of wheat changed?The demand for wheat will rise as the price of wheat declines. When the demand curve shifts, there is an increase in demand. At the new equilibrium price, more wheat will be traded, increasing the amount demanded.
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New techniques in the production of computers make it possible to produce them at a lower cost. What do you think would happen in the market for computers?
a. the demand curve will shift to the left
b. the supply curve will shift to the left
c. the demand curve will shift to the right
d. the supply curve will shift to the right
The use of new technique to produce computers at a lower cost will affect the market for computers in that the supply curve will shift to the right. (Option D).
Why will the Supply Curve Shift to the Right?If the cost of producing computers decreases due to new techniques, it would lower the marginal cost of producing each unit. This means that suppliers can now offer computers at a lower price while still maintaining their profit margin. As a result, we can expect that the supply curve will shift to the right (option d) in response to this development.
The increased supply of computers at a lower price is likely to stimulate demand for them, which could lead to an increase in the quantity demanded. Hence, we can also expect the demand curve to shift to the right, but the degree of the shift will depend on the price elasticity of demand for computers.
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Sam Tuckerton sells for Fair Designs, Inc. He is on a 4.5% straight commission with a $1,800 drawing account. If he is paid the draw at the beginning of the month and then sells $125,000 during the month, how much commission is owed to Sam?
Sam has made more commission than the amount of the drawing account, as seen by the negative amount owed. As a result, he is owed $5,625—the total amount of his commission.
What does commission cost in dollars?A commission is the quantity paid to an employee for accomplishing a task, which is typically selling a specific volume of goods or services, according to the U.S. Department of Labor. In addition to or in substitute of a standard pay, commission may be paid.
What does business commission mean?A sales commission is a payment made to an employee after they successfully complete a task, typically selling a predetermined volume of goods or services. Sales commissions are a common incentive used by employers to boost employee productivity.
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5. Question 5 What is part of a project launch?
Answer:
Explanation:
Signature Global City 93 Gurgaon is a great investment opportunity for several reasons. Firstly, it is located in a prime location in Gurgaon, which is one of the fastest-growing cities in India. This means that the property value is likely to appreciate significantly in the coming years, providing excellent returns on investment.
Secondly, Signature Global is a well-known and respected developer with a track record of delivering high-quality projects on time. This means that investors can be assured of the quality of the construction and timely delivery of the project.
Thirdly, the project offers a range of luxurious amenities and facilities, including landscaped gardens, a swimming pool, a gymnasium, and a clubhouse. These amenities are designed to provide residents with a comfortable and convenient lifestyle, which is sure to attract a high demand for the property.
Finally, Signature Global City 93 offers 2 & 3 BHK luxury floors in Gurgaon at an affordable price. This makes it an attractive investment option for buyers who are looking for a premium property at a reasonable cost. Overall, investing in Signature Global City 93 Gurgaon is a wise choice for those who are looking for a lucrative real estate investment opportunity.
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The McMillan Corporation incorporated on September 2, 2011. The company engaged in the following transactions during its first month of operations:
Sept. 2 Issued capital stock in exchange for $900,000 cash.
Sept. 4 Purchased land and a building for $350,000. The value of the land was $50,000, and
the value of the building was $300,000. The company paid $200,000 cash and issued a note payable for the balance.
Sept. 12 Purchased office supplies for $600 on account. The supplies will last for several
months.
Sept. 19 Billed clients $75,000 on account.
Sept. 29 Recorded and paid salary expense of $24,000.
Sept. 30 Received $30,000 from clients billed on September 19.
A partial list of the account titles used by the company includes:
Cash
Accounts Receivable
Office Supplies
Land
Building
Notes Payable
Accounts Payable
Capital Stock
Client Revenue
Salary Expense
a.
Prepare journal entries, including explanations, for the above transactions.
b.
Post each entry to the appropriate ledger accounts (use the T account format illustrated in
Exhibit 3-8 on page 108).
c.
Prepare a trial balance dated September 30, 201 1
The general journal for McMillan Corporation is given below(check images).
The total debit is $1,179,600 and the total credit is $1,179,600
What is a General Journal?A General Journal, also known as a Journal or Journal Entry, is a chronological record of all financial transactions made by a business. It is the primary bookkeeping record where all financial transactions are recorded in chronological order, regardless of the account affected or the amount of money involved.
The General Journal records all types of financial transactions, including the ones that do not fit into any of the specialized journals such as the Sales Journal, Purchase Journal, or Cash Receipts Journal. Examples of transactions that are recorded in the General Journal include the purchase of a fixed asset, adjusting entries, and accruals.
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what belongs in a reference field when completing a deposti
A reference field is a short description providing a receipt or invoice number for records.
Define an invoice number.An invoice that contains a list of products or services provided to a customer for payment. The seller or supplier will issue an invoice towards the end of the transaction after the product has been delivered or the service has been rendered. The invoice contains the previously agreed price to be paid by the buyer after completing the order.
As your business grows, you, the business owner, will be sending a lot of messages. This is a good question, but difficult to track. This is where the invoice number comes into play. Set up an invoice number assignment system and maintain a consistent invoice number format. These handy numbers make it much easier for small business owners to manage each billing cycle, avoid double payments, get paid faster, and get through the other side of tax audits unscathed. Become.
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The complete question is as follows:
What belongs in a reference field when completing a deposit?
why studying business low is so important?
It is important to study business law because it helps you spot potential legal issues as they come up, make better decisions, and know when to seek legal help.
If you are not aware of these laws you could be putting your staff at risk, violating employment laws and failing to ensure your premises are safe for customers.
What does the phrase "business law" mean?The formal procedure for making a company organization and the rules managing the sale of corporate entities are governed by business law. Moreover, it has rights delegation, contract drafting, task delegation, breach of contract, transactions, contracts, and sanctions for contract violations.
What is it , and what does it serve?When it comes to businesses and their dealings with people, organizations, and other enterprises, the goals and functions of business law include making order, defending rights and freedoms, creating standards, and settling conflicts.
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A company repaid a long-term debt during the year. They will report this as a(n) (increase/decrease)
in the
activities section on the statement of cash flows.
The repayment of a long-term debt will be reported as a decrease in the activities section on the statement of cash flows as repayment of a long-term debt represents a cash outflow for the company, reducing liabilities.
What is cash flow?The cash flow statement is a type of financial statement that details the sources and uses of a company's cash over time. The three main sources of a company's cash flow are typically operations, investing, and finance.
The debt service coverage ratio, free cash flow, and unlevered cash flow are only a few of the techniques used to examine a company's cash flow.
Companies receive revenue from sales and spend money on costs.
Together with these sources of revenue, they might also sell goods on credit, anticipating to get paid the money owing at a later time, and earn money through investments, royalties, licencing deals, and interest.
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a. The manager of the Greenfield store has a personal friendship with a number of
employees. He wants to get these employees positions at one of the other stores. How would
you respond to this human resources scenario?
We asked HR professionals to share their stories about dealing with difficult employees and the lessons they have learned over time in order to provide you with some concrete advice on what to do.
How do you handle employees who are difficult?I discovered after spending some time getting to know her better that she was actually quite unhappy in her current position. I assisted her in setting career goals and creating a strategy for achieving them. As soon as she changed jobs, she changed how she treated other people. In the end, the employee rose to become the department's go-to person.
Success almost always follows when you concentrate on matching an employee's strengths to the job she is expected to do. Work with employees to create a strategy that will help them achieve their objectives. Finally, give them a lot of feedback and praise them for their accomplishments. This will result in a win-win situation for the company and its employees.
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MKT mix (4ps) marketing campaign idea of unilever,p&g,nestle
The 4 Ps of the marketing mix are product, price, place, and promotion
Explanation of the 4 PsProduct: The goods or services offered by a company.
Price: The amount of money charged for the product.
Place: The location where the product is sold.
Promotion: The methods used to communicate the benefits and value of the product to the target audience.
Here are some general marketing campaign ideas that these companies may use:
Unilever:
Promote eco-friendly and sustainable products to appeal to consumers who are concerned about the environment.
Use social media influencers to endorse their products and create buzz.
Launch seasonal products, such as limited-edition flavors, to keep customers interested.
Highlight their commitment to diversity and inclusion in their advertising campaigns.
P&G:
Use emotional storytelling to connect with customers on a deeper level.
Offer promotions and discounts to encourage repeat purchases.
Promote their commitment to social responsibility by supporting charitable causes.
Develop creative product packaging and displays to stand out on the shelves.
Nestle:
Use digital marketing to target younger consumers who are tech-savvy.
Offer interactive promotions, such as contests and giveaways, to engage customers.
Highlight the health benefits of their products to appeal to health-conscious consumers.
Use celebrity endorsements to increase brand awareness and credibility.
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What are the 4 Ps of the marketing mix
List out the marketing campaign ideas of Unilever, P&G and Nestle
Doing some research on the key players will help you make the most of business blank or blank
The main benchmark for a business's success is customer satisfaction. Your ability to satisfy your customers to the point where they pick you over someone else, that they do business with you again.
What Exactly Is a Customer?A person or firm that purchases goods or services from another company is known as a customer. Consumers are crucial because they provide revenue; without them, firms would cease to exist.
In sales, commerce, and economics, a customer is the recipient of a good, service, product, or idea that they have purchased from a seller, vendor, or supplier in exchange for money or another useful consideration.
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To maintain the control needed to obtain accurate information, marketers approach marketing research as a process. Which of the following steps of that process focuses on
uncovering the nature and boundaries of the marketing situation to be studied?
O a. Locating and defining problems
Ob Designing the project
O c. Collecting data
d. Reporting findings
e. Interpreting findings
The management of Tritt Company has asked its accounting department to describe the effect upon the company’s financial position and its income statements of accounting for inventories on the LIFO rather than the FIFO basis during 2025 and 2026. The accounting department is to assume that the change to LIFO would have been effective on January 1, 2025, and that the initial LIFO base would have been the inventory value on December 31, 2024. The following are the company’s financial statements and other data for the years 2025 and 2026 when the FIFO method was employed.
The LIFO (last-in, first-out) method assumes that most recently purchased inventory items are sold first, while the FIFO (first-in, first-out) method assumes that the oldest inventory items are sold first.
What is inventory?Inventory refers to the goods, raw materials, work-in-progress, or finished products that a company holds for the purpose of selling, producing, or distributing. It can include both tangible and intangible items, such as physical products, digital downloads, or intellectual property. Managing inventory is a crucial aspect of supply chain management, as it affects the company's cash flow, profitability, and customer satisfaction. Companies need to balance inventory levels to ensure they have enough to meet customer demand without overstocking, which ties up capital and increases the risk of obsolescence or damage. The type of inventory a company holds and how it manages it can vary depending on the industry, product type, and supply chain complexity.
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Refer to Figure 3. Which of the following statements is correct?
O A. To induce firms to internalize the externality in this market, the government should offer a subsidy measured by P₂ - Po
B. To induce firms to internalize the externality in this market, the government should impose a tax measured by P₂ - Po.
C. To induce firms to internalize the externality in this market, the government should impose a tax measured by P2 - P₁.
D. There is no externality in this market.
Option (b), The government ought to implement a tax that is calculated as P2 - P0 in order to encourage businesses to internalize the externality in this market.
How could the government internalize a beneficial externality?It is referred to as a positive externality when a benefit is shared with a third party. The government is able to prevent negative externalities by taxing goods and services that generate spillover costs. The government can promote positive externalities by offering subsidies for goods and services that have positive spillover effects.
The supply and demand market economy has the potential to incorporate externalities.Externalities can be internalized through market processes, governmental control, autonomous groups, or a mix of these institutions.
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What is the purpose of a report?
Answer:
A. To display data returned from a query in a specially formatted way.
The first thing you need to do to get intentional about your future is...
Consider the cost of education
Dream of the possibilities
Build your resumé
Determine your college ROI
The first thing you need to do to get intentional about your future is to determine your college ROI.
What is ROI?ROI (Return On Investment) is a measure of the profitability of an investment, expressed as a ratio or percentage of the amount of money returned on the investment compared to the amount of money originally invested. It is a key indicator of how well an investment has performed, and is calculated by dividing the total gains from an investment by the total amount of money invested. ROI is commonly used to compare different investments, as it provides a more accurate measure of the profitability of an investment than the initial cost of the investment. ROI is an important factor to consider when making an investment decision.
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1. How would you define the attributes and benefits of Crayola® products?
2. Define the core, actual, and augmented product benefits.
3. Where was Crayola® in the Product Life Cycle before it entered the toy market? Where do you think they are now? Explain.
4. Do you see the move from school supply products to toys as product development? Explain.
5. Describe the Crayola® product portfolio strategy.
Answer:
1. The attributes of Crayola® products include qualities such as bright colors, smooth application, and non-toxic materials. The benefits of these attributes are that they allow for creative expression and artistic exploration, while also providing a safe and reliable product for children to use.
2. The core product benefit of Crayola® products is artistic expression and creativity. The actual product benefits include the variety of colors and types of products available, such as crayons, markers, and paints. The augmented product benefits may include features such as reusable storage containers, educational resources, and online tutorials.
3. Before entering the toy market, Crayola® was likely in the maturity stage of the product life cycle, as their core products (crayons, markers, and paints) had been established for many years and were widely used in schools and homes. It is difficult to speculate on their current position in the product life cycle without more information on their recent product development and marketing strategies.
4. The move from school supply products to toys can be seen as a form of product development, as it involves expanding the company's product offerings and entering a new market. However, the specifics of the product development process would depend on the nature of the toys being developed and the company's goals and strategies for entering the toy market.
5. Crayola®'s product portfolio strategy likely involves offering a range of products that appeal to different age groups and interests, while also maintaining a consistent brand identity and quality standards. This may involve developing new products and variations on existing products, as well as partnerships and collaborations with other brands and organizations. Again, it is difficult to provide specific information without access to current marketing and product development strategies.
Answer: here we go
Explanation:
1. The attributes of Crayola® products include bright colors, easy application, and safety for children. The benefits of the products are a tool for self-expression, creativity, and educational benefits.
2. The core product benefit of Crayola® products is a tool for self-expression and creativity. The actual product benefits are its bright colors, easy application, and safety features. The augmented product benefits are the educational benefits and the satisfaction of a quality product.
3. Before entering the toy market, Crayola® was in the maturity phase of the Product Life Cycle. They were a well-established brand with loyal customers. Currently, Crayola® is still in the maturity phase, but with their expansion into the toy market, they have the potential to enter the growth phase.
4. Yes, the move from school supply products to toys is a form of product development. Crayola® identified an opportunity to expand their product line and reach a new market which led to the creation of a new line of products.
5. Crayola's product portfolio strategy includes a wide range of products for school and home use. They offer various types of coloring and art supplies to cater to different needs, from washable markers for young children to professional-grade colored pencils for artists. The company constantly innovates and improves their products to maintain their position as a market leader. Additionally, they have expanded their product line with toys and other creative items to reach a wider audience.
Why do borrowers end up paying more over a longer payment schedule (such as 48 months vs 30 months)?
The answer is the borrowers end up paying more over a longer payment schedule because longer loan term means accumulating more interest charges over time.
A longer term is riskier for the lender because there's more of a chance interest rates will change dramatically during that time. Because it's a riskier loan to make, lenders charge a higher interest rate.
What would you consider to be an interest?Interest is the fee you pay to borrow money or the fee you charge to lend money. Most frequently, interest is shown as a yearly percentage of the loan amount. The interest rate on the loan is this particular percentage.
What does an interesting example look like?Consider borrowing $1,000 for seven years at a 10% interest rate. Your interest would be $100 in the first year. Your interest payment for the next year would consist of the principle amount plus interest, or $1,100.
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If fixed costs are £1000, the selling price per unit is £10 and variable costs per unit are £5, what is the breakeven output?
According to the question of fixed costs, the breakeven output is 200 units.
What is fixed costs?Fixed costs are costs that do not vary with the amount of output produced by a company. They are expenses that must be paid regardless of the amount of goods or services produced by the company. Fixed costs include rent, insurance, debt service payments, depreciation, office supplies, and utilities. They are also known as overhead costs and are the same at any level of production. Fixed costs are important in cost-volume-profit analysis, as they do not change with the amount of output.
This is calculated by dividing the fixed costs by the contribution margin (the difference between the selling price and the variable costs). In this example, the contribution margin is £5 (selling price of £10 minus variable costs of £5) and therefore the breakeven output is £1000 (fixed costs) divided by £5 (contribution margin) = 200 units.
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