Answer:
Instructions are below.
Explanation:
Giving the following information:
The selling prices are $1,310 per desk unit and $560 per chair. The variable costs are $810 per desk unit and $310 per chair. Fixed costs are $180,000.
The company sells 3 deks per 2 chairs.
Sales proportion:
Desks= 3/5= 0.6
Chairs= 2/5= 0.4
1) Selling price per composite unit= sales proportion*selling price
Selling price per composite unit= 0.6*1,310 + 0.4*560
Selling price per composite unit= $1,010
2) Variable cost per composite unit= sales proportion*unitary variable cost
Variable cost per composite unit= 0.6*810 + 0.4*310
Variable cost per composite unit= 610
3) Break-even point (units)= Total fixed costs / Weighted average contribution margin
Break-even point (units)= 180,000/ (1,010 - 610)
Break-even point (units)= 450 units
4) Number of units for each product:
Desks= 0.6*450= 270
Chairs= 0.4*450= 180
Answer:
(a) Strategy recommended for initial expansion
Target Markets
Market Entry
(b) Factors to consider when pursuing the expansion strategy
Brand Recognition
Cultural Understanding
Explanation:
There are two parts of this question. Therefore, they are written in details below as points (a) and (b)
<u>(a) Strategy recommended for initial expansion</u>
<u>Target Markets</u>
In order to proceed with any idea/plan at a strategic level, one must consider doing their homework. This means to understand the international customers, what do they buy, at what price is the goods preferred, which methods of shopping best suits them and so on.
<u>Market Entry</u>
Planning on how to enter the market is an important strategy in the plan for initial expansion. This could be achieved by acquiring another business and/or selling unique product/service.
(b) Factors to consider when pursuing the expansion strategy
<u>Brand Recognition</u>
One must question whether your brand is recognized in the market or not and at what level is it recognized. Awareness of brand existence have increased significantly with the help of social media. However, the same could be said about the number of brands available in the market for a single good/service. Therefore, research must be conducted before expanding into new territories.
<u>Cultural Understanding</u>
Culture is different in each country and based on which different market strategies needs to be implemented for each country. Let's say you approach a country where language of the country is not known to your existing employees. Therefore, you may need to train them first before working in the country and this could amount to a significant cost. It's best to start expansion in those countries where you have better cultural understanding.
Answer: Service Charge
Explanation: a service charge goes toward the day to day running costs of a company, used to cover things like building costs, insurance, employee compensation. It is how companies like Costco are able to pass along reduced price products to members.
Answer:
Explanation:
Crowdfunding can be regarded as a way in which businesses can raise funds through the contribution of large number of people to the project.
SPEED AND ACCESSIBILITY
Crowdfunding helps the entrepreneur/ Businesses to get the necessary capital without passing through arduous process involving in loan collection, and this is good for small and medium companies that doesn't have enough creditworthiness in taking loan. As far as crowdfunding is concerned, no special qualifications involved in starting a crowdfunding campaign, within some hours ones page can be outlined and make visible to crowdfunding platform’s audience. There is no hunt down of specific venture capitalists.
<u>Solution and Explanation:</u>
a.<u>Compute Firm A’s net cash flow attributable to the asset purchase in each year.Year 2011:
</u>
Cost of Asset = ($50,000)
Tax Savings (Annual Depreciation x Tax Rate) = $1,099
Net Cash Flow = ($48,901)
Year 2012:
Cost of Asset = N/A
Tax Savings (Annual Depreciation x Tax Rate) () = $2,520
Net Cash Flow = $2,520
b. <u>Compute Firm A’s adjusted basis in the asset at the end of each year.
</u>
INITIAL COST OF ASSET = $50000
DEPRECIATION YEAR 1 = (3140)
ADJUSTED BASIS AT END OF YEAR 1 = $46860
YEAR 2 DEPRECIATION = (7200)
ADJUSTED BASIS AT END OF YEAR 2 = $39660