shue music company is considering the sale of a new sound board used in recording studios. the new board would sell for $27,300, and the company expects to sell 1,500 per year. the company currently sells 1,850 units of its existing model per year. if the new model is introduced, sales of the existing model will fall to 1,520 units per year. the old board retails for $25,100. variable costs are 55 percent of sales for both boards, depreciation on the equipment to produce the new board will be $1.85 million per year, and fixed costs are $2.8 million per year. if the tax rate is 22 percent, what is the annual ocf for the project?

Answers

Answer 1

The operating cash flow of the project is $9512915

Operating cash flow is the after-tax free cash flow that is available to the firm for new investments or expansion. It is also available to the owners of businesses as well. If a firm does not generate sufficient OCFs, there would be a high likelihood that it will engage in a shortage of liquidity in the short term.

Revenue on new board = Quantity sold x Price = 1,500 x $27,300 = $4,09,50,000

Loss on existing sales = (1,850 - 1,500) x $25,100 = $87,85,000

Net sales = $4,09,50,000 - $87,85,000 = $3,21,65,000

Variable expense = Net sales x 55% = $3,21,65,000 x 55% = $1,76,90,750

Fixed costs = $2,800,000

Depreciation = $1,850,000

OCF = (Net sales - Variable cost - Fixed cost - Depreciation) x (1 - Tax rate) + Depreciation

OCF = ($3,21,65,000 - $1,76,90,750 - $2,800,000 - $1,850,000) x (1 - 22%) + $1,850,000

= 98,24,250*0.78 + 1,850,000

= 7662915 + 1850000 = $9512915

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Related Questions

kellen works for a sportswear supplier and for the past month she has been focusing on nike products when talking to customers because nike is running a sales contest and she can earn an additional $2,000 if she meets her goal. this is an example of .

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Kellen works for a sportswear supplier and for the past month she has been focusing on nike products when talking to customers because nike is running a sales contest and she can earn an additional $2,000 if she meets her goal. this is an example of Trade promotion .

What do you mean by trade promotion?

It's a marketing tactic used to spur more consumer demand for goods at brick and mortar establishments. In a trade promotion, wholesalers and/or retailers are given special price breaks (typically in addition to a trade allowance), free or discounted display stands or racks, presents, or other rewards.

What does supply chain trade promotion entail?

Trade promotion is the marketing effort between retailers and manufacturers to boost demand. These initiatives could involve sales, promotions, coupons, or any other number of marketing techniques.

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Seasonality refers to a data pattern that repeats itself after a period of days, weeks, months, or quarters.

a. True
b. False

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This statement is True. Seasonality refers to a data pattern that repeats itself after a period of days, weeks, months, or quarters.

Due to changes in temperature, pressure, heat, and humidity, a pattern known as seasonality repeats itself after a set amount of time. It produces a climate that is suitable for a specific season.

The environment is not static; it changes over time. When an internal or external force, such as heat, pressure, or temperature, alters an existing pattern or trend, the general weather changes, and a new season begins.

Seasonality in time series data is the occurrence of variations that happen on a regular basis but less frequently than annually, such as weekly, monthly, or quarterly.

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alfonso began the year with a tax basis in his partnership interest of $15,000. his share of partnership liabilities at the beginning and end of the year consists of $7,000 of recourse liabilities and $10,000 of nonrecourse liabilities. during the year, he was allocated $32,000 of partnership ordinary business loss. alfonso does not materially participate in this partnership, and he has $3,000 of passive income from other sources.

Answers

Alfonso basis before the loss allocation $15,000 , $17000 of his 32000 loss allocation is limited by his tax basis and will carryover to the following year .

What exactly does "interest rate" mean?

An interest rate informs you of how much borrowing will cost you and how much saving will pay off. Therefore, the interest rate is the amount you pay for borrowing money and is expressed as a percentage of the total loan amount if you are a borrower.

alfonso began  the year with a tax basis in his partnership interest of $15,000.

because alfonso basis before the loss allocation $15,000 , $17000 of his 32000 loss allocation is limited by his tax basis and will carryover to the following year .

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the level of integration and coordination of subunits is lowest for firms following a(n) blank strategy and highest for firms following a transnational strategy. multiple choice question. localization international global standardization

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The level of integration and coordination of subunits is lowest for firms following a localization strategy and highest for firms following a transnational strategy.

What is localization strategy?A company's localization strategy is a distinctive market technique it uses to handle the varying cultural norms, consumer behaviors, and purchasing patterns in each country it operates.For businesses using a localization approach, there is the least integration and coordination across subunits, and for businesses using a transnational strategy, there is the most.This is a prime example of a localization and globalization plan that works. By enabling customers from all over the world to read subtitles in the language of their choice or select a dubbed version of the show or movie, Netflix is able to draw in such a sizable international audience.

Therefore, the level of integration and coordination of subunits is lowest for firms following a localization strategy and highest for firms following a transnational strategy.

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Correct question:

The level of integration and coordination of subunits is lowest for firms following a(n) blank strategy and highest for firms following a transnational strategy.

multiple choice questions.

a. localization

b. international

c. global

d. standardization

restoration inc. enters into a contract to refurbish an old bus depot for quality diners llc. if restoration completes most of the work promised in the contract, its performance will be

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Quality Diners LLC hires Restoration Inc. to renovate an outdated bus depot. Restoration will have substantially performed if it completes the majority of the work specified in the contract.

What is renovating?

Remodeling is the process of renovating a harmed, outdated, or dilapidated building. Renovations of homes or businesses are common.

Additionally, in social contexts, the word "renovation" can refer to both the creation of something new and the revitalization of something. For instance, a community may be renovated if it is strengthened and revitalized.

Typically, there are multiple phases that make up the refurbishment process.

PlanningEngineeringRepair of structuresRebuildingFinishes

The renovation process has been significantly impacted by technology, elevating the importance and power of the planning stage. The capacity to visualize changes more effectively and for a lot less money than engaging an interior designer is made possible by the accessibility of free online design tools.'

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the number of people who shop versus the number of people who actually make or book reservations is known as the ratio. group of answer choices supply/demand look-to-book cross-selling gds

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Cross-selling involves convincing customers to purchase additional products or services in addition to the ones they had initially planned to. When they are complementary to one another, which happens frequently, customers are more inclined to purchase both cross-sold items.

When a consumer starts the checkout process or adds an item to their shopping cart, they are inferring to the company that they are a current client and intend to make a purchase. Businesses frequently use a cross-sell during this stage of the buyer's cycle by suggesting a related product or offering a discount if both are bought at once.

The practice of persuading customers to upgrade or add-on to the good or service they are purchasing is known as upselling. The advertised good or service is usually expensive which might raise the total cost of the order.

Similar to cross-selling, upselling often takes place when a customer has started the checkout process or added something to their basket and is more open to final sales pitches. The likelihood that the consumer will ultimately opt to switch at the last minute should improve as they are likely to have already done some research on the product and may have thought about the upgrade or add-on.

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question content areathe major objective(s) of allocations are a.to compute product-line profitability. b.to motivate managers. c.to value inventory. d.all of these choices are correct.

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Question content are a the major objective(s) of allocations are all of these choices are correct.

What does the term "main objective" mean?

something you want to do or accomplish: Her current main goal is to just maintain her position of power.

What are goals and an example?

A goal is something you intend to accomplish. A mission's overall strategy is known as a military objective. To raise money is the goal of a bake sale. You have achieved your goal if it was to learn a new term. The purpose of something is its objective.

What does the term "allocation" mean?

allocations. counting noun An allocation is a quantity of something, most often money, that is handed to a certain individual or used for a specific objective.

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when can an employer perform a drug screen on employees? a. when the employee has missed four days or more of work b. when the employee calls off on mondays and fridays c. when another employee complains that an employee smells like alcohol d. when the employer has reasonable concerns of impairment

Answers

Answer:

Louisa works in Marketing. She works with several different areas of the company that employs her. Which task does Louisa have others perform?

conducting meetings at a satellite office

working on new marketing campaigns at home

participating in teleconferences in her home office

training other employees how to use a computer

Explanation:

while matt likes the structure provided by the rational decision-making process, you caution him that it has some shortcomings. why is the rational decision-making process difficult to apply completely in many situations? check all that apply.

Answers

In the given situation, the rational decision-making process is difficult to apply completely in many situations because (A) managers do not always evaluate situations rationally.

What is the rational decision-making process?The antithesis of intuitive decision-making is rational decision-making. It follows a precise process that makes use of logic and objective knowledge. It entails recognizing the issue that has to be resolved, collecting data, locating options and outcomes, analyzing them, taking into account all the connections, and making a decision.A person choosing between two cars would be an illustration of a reasonable customer. Because Car B is less expensive than Car A, the consumer chooses to buy it. Although the rational choice theory is clear-cut and logical, it frequently runs afoul of reality.

Therefore, in the given situation, the rational decision-making process is difficult to apply completely in many situations because (A) managers do not always evaluate situations rationally.

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Complete question:
While matt likes the structure provided by the rational decision-making process, you caution him that it has some shortcomings. why is the rational decision-making process difficult to apply completely in many situations? check all that apply.

a. managers do not always evaluate situations rationally.

b. managers are limited by their values and conscious health.

c. managers usually have the resources to consider numerous alternatives

d. managers cannot always obtain accurate information

harvey hotels has provided a defined benefit pension plan for its employees for several years. at the end of the most recent year, the following information was available with regard to the plan: service cost: $7.7 million, expected return on plan assets: $2.7 million, actual return on plan assets: $2.5 million, interest cost: $2.9 million, payments to retired employees: $3.5 million, and amortization of prior service cost (created when the pension plan was amended causing a drop in the projected benefit obligation): $2.6 million. what amount should harvey hotels report as pension expense in its income statement for the year?

Answers

The amount should Harvey hotels report as pension expense in its income statement for the year is $9.7 million .

What is pension expense?

The amount that a company deducts as an expense for pension obligations owed to employees is known as pension expense. Whether the underlying pension is a defined benefit plan or a defined contribution plan determines how much this expense will cost. The size of this payment in the future is determined by a number of factors, including projected employee life expectancies, the length of time that current employees will remain employed by the company, and the pay at which employees were employed immediately before retiring. Essentially, the accounting for defined benefit plans involves estimating the future payments that will be made and recording related expenses during the times that employees are performing the services that qualify them for future payments.

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• Is provided by the government through its

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Answer:

Powers not granted to the Federal government are reserved for States and the people, which are divided between State and local governments.

some nations that seek to produce all of their own needs face the problem that:

Answers

Some nations that seek to produce all of their own needs face the problem that some industries are too small to be efficient if restricted to their domestic markets alone. Customers of a single company who reside in the nation in which the business is located are also referred to by domestic markets.

Why are domestic markets important?

A domestic market is the supply and demand of goods, services, and securities within a single nation. It is also known as an internal market or domestic trade. Although the company may have many market sectors, in domestic trade a firm fundamentally only has to deal with one group of consumers and one set of competitive, economic, and market challenges. When competing in a domestic market, there are some restrictions, many of which drive businesses to expand abroad.

Limited market size and slow local market growth are the key drivers of international business expansion. The primary location for issuance activities is domestic markets. More businesses now have access to equity and corporate bond funding as local markets have grown. The advantage of domestic capital markets over overseas markets is that they draw more and smaller companies.

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QUESTION 2/10

Which of the following is a variable expense for many adults?
A. Their monthly rent payment.
C. Their monthly cost of eating out at restaurants.
B. The monthly payment on their car loan.
D. Their monthly payment for health insurance.

Answers

c. their monthly cost of eating out at restaurants.

Variable expenses refer to expenses that change from time to time. An example of variable expenses is the monthly expenses for eating out in restaurants. This is because there is no defined number of times an individual should eat in a restaurant. Thus, the cost of eating in restaurants varies every month. Fixed expenses remain constant every month. Examples of fixed expenses include money spent on health insurance, rent payment, and car loans. Therefore, it is correct to argue that the right answer is option c.

To be an active participant in a meeting, it's MOST essential to do what?

A. provide new ideas

B. ask questions

C. interrupt

D. listen

PLS ANSWER QUICK ILL GIVE BRAINLIEST!!!!!!!!!!!!!!!

Answers

Answer:

D is the correct answer

the one who listens

which of the statements below is true regarding only fiscal policy? it causes ad to shift to the right. it increases the availability of money. it uses government expenditures to create demand for goods and services. it can be taken in an attempt to alter ad.

Answers

C) It is accurate to say that only fiscal policy employs government spending to generate demand for products and services.

Describe fiscal policy.

The use of public spending and taxation, specifically macroeconomic conditions, is known as fiscal policy. Employment, inflation, economic growth, and the overall demand for goods and services are some of these.

During a recession, the government may lower tax rates or increase spending in an effort to boost the economy and demand. On the other hand, it can raise interest rates or cut back on spending to slow the economy and combat inflation. Fiscal policy and monetary policy are sometimes contrasted because monetary policy is carried out by central bankers as opposed to elected government officials.

What Are the Primary Financial Policy Instruments?

Governments can affect the economy by using fiscal policy tools. Changes in tax rates and government spending make up the majority of these.

Taxes are reduced and spending is increased to boost economic growth. This frequently involves borrowing by issuing public debt. Taxes may be increased and spending cutbacks implemented to cool down an overheated economy.

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which of the following is not a type of business process in the balanced scorecard framework? multiple choice operations management customer management innovation regulatory and social all of the choices are types of business processes.

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In the balanced scorecard framework, all of the choices are types of business processes: operations management, customer management, innovation, regulatory, and social.

A framework is a structure on which you can build software. It acts as a foundation, so you're not beginning from scratch. Frameworks are often associated with a specific programming language and are suitable to various types of jobs. Assume you're building a house. You might pour the foundation and frame the house yourself. It would take a long time, but you could do it. But if all of that was already done for you, it would save you a lot of time and effort – especially if it was done by professional home builders.

A framework performs a similar purpose in software development. It's been designed and tested by other Software Developers and Engineers, so you know it's a solid foundation.

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when a company pays to put products into tv shows and movies where they will be seen by consumers, they are using a strategy called product

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when a company pays to put products into tv shows and movies where they will be seen by consumers, they are using a strategy called product placement.

In a production aimed for a broad audience, branded goods and services are featured as a kind of product placement advertising. Product placements, sometimes known as "embedded marketing" or "embedded advertising," are frequently seen in motion pictures, television programmes, home videos, radio, and—less frequently—live performances. Companies may provide a production firm or studio money, commodities, or services in return for the licence to use their products.

Product placements are used, addressed, or discussed throughout the broadcast in a way that will make viewers feel good about the promoted brand. They do not include graphic content. Instead than being explicitly advertised to, product placement allows the audience to form a better relationship with the brand in a more organic way. It's very likely that an advertiser paid for a brand to feature in a film, TV programme, or other performance. Some individuals think that this kind of advertising is fundamentally dishonest and misleading to young people who are susceptible to persuasion.

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Anastasia was trying to decide which investment plan would be best over 10 years. Bank a was offering 8. 5% simple interest on her money using the formula i = p r t. Bank b was offering 8% compounded annually using the formula a = p (1 + r) superscript t. Which bank is a better investment if she has $2,000 to invest for 10 years?.

Answers

Bank B is the better investment, where Bank a was offering 8. 5% simple interest on her money using the formula i = p r t. Bank b was offering 8% compounded annually using the formula a = p (1 + r) superscript t.

Investment = P =  $2,000

Number of years = n = 10

If the She invest in Bank A

r = 8.5% simple interest

Accumulated value after 10 years = A =P + (P x r x n) =  $2,000 + ( $2,000 x 8.5% x 10 ) = $2,000 + $1,700 = $3,700

If the She invest in Bank B

r = 8% Compounded yearly

Accumulated value after 10 years = A = P x (1 + r )^n =  $2,000 x ( 1 + 8% )^10 = $2,000 x ( 1 + 0.08 )^10 = $2,000 x ( 1.08 )^10 = $2,000 x 2.1589 = $4,317.8

= $4,318

Hence Bank B is the better investment because it make more money than in Bank A after 10 years.

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if the public correctly perceives that the central bank will reduce inflation, then the short-run phillips curve shifts a. left, and unemployment will rise by less than otherwise. b. right, and unemployment will rise by more than otherwise. c. right, and unemployment will rise by less than otherwise.

Answers

Then the short-run Phillips curve shifts left, and the sacrifice ratio will be lower if the public correctly perceives that the central bank will reduce inflation.

So, the correct option is A.

The long-run Phillips curve will move to the left if frictional unemployment declines as a result of improved job-matching capabilities (because the natural rate of unemployment decreases). A demand curve's whole slope can be shifted right or left by changes in variables like average income and preferences. As a result, a greater or lower amount may be required for a particular price.

Some businesses quitting an industry might be the source of a leftward change in a product supply curve. According to the law of supply, producers will offer more of a product at high prices than they will at low ones.

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an improvement made to a machine increased its fair market value and its production capacity by 25% without extending the machine's useful life. the cost of the improvement should be

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An improvement made to a machine increased its fair market value and its production capacity by 25% .The cost of the improvement should be  capitalized in the machine account.

Cost of improvement:

Cost of improvement is the capital expenditure incurred by an assessee for fabricating any addition or enhancement in the capital asset. It also includes any expenditure incurred in guarding or curing the title.

How do you treat cost of improvement?

Any capital expenditure incurred by you or former proprietor of the asset for making additions or revision to similar capital asset which enhances the valuation of the asset or rise it's price shall be treated as cost of improvement.

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the value of the marginal product of labor is the ____________.

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The value of the marginal product of labor is the additional output produced by hiring one more unit of labor.

VMP helps to save you from labor exploitation in industries. The price of a Marginal Product is a calculation derived by multiplying the marginal bodily product by means of the common sales or the rate of the product. greater without a doubt, the system for calculating VMP is: physical Product x income rate of the Product.

The fee of the marginal product equals the salary, it also produces as much as the point at which the price equals the marginal fee.

A profit-maximizing firm chooses the number of exertions so that the price of the marginal product equals the wage.

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in 2013, decided to kill its 20 percent time policy, which allowed its staff to work on side projects of their choice, one day per week. the decision to end the 20 percent time policy was most likely made in order to .

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The decision to end the 20 percent time policy was most likely made in order to permit reallocation of resources to enhance strategy execution capabilities.

The process of allocating and managing resources in a way that advances a company's strategic planning objectives.

In order to maximize the use of softer assets like human capital, resource allocation also involves managing tangible assets like hardware. To maximize the use of scarce resources and obtain the best return on investment, resource allocation entails balancing competing needs and priorities and choosing the best course of action.

Organizations must first decide on their desired outcome, such as higher revenue, increased productivity, or improved brand recognition, before they can begin resource allocation. They must then determine what resources will be required to accomplish that goal.

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mccabe corporation is expected to pay the following dividends over the next four years: $20, $16, $15, and $8.50. afterward, the company pledges to maintain a constant 5 percent growth rate in dividends forever. if the required return on the stock is 15 percent, what is the current share price?

Answers

The current share price is $95.19

A dividend is a payment made by a corporation to its shareholders that is decided by the board of directors. Dividend payments are frequently made quarterly and might take the form of cash payments or stock reinvestments. The dividend yield, which is the dividend per share, is expressed as a percentage of the share price of a company, for example, 2.5%.

D1=$20

D2=$16

D3= $15

D4=$8.50

g= 5%

r=15%

Price of stock = D1/(1+r)^1 + D2/(1+r)^2 + D3/(1+r)^3 + D4/(1+r)^4 + D4*(1+g)/(1+r)^4*(r-g)

= 20/1.15 + 16/(1.15)^2 + 15/(1.15)^3 + 8.50/(1.15)^4 + 8.50*(1.05)/(1.15)^4*(0.10)

= $17.39 + $12.09 + $9.86 + $4.85 + 8.92/0.1749

= 17.39 + 12.09 + 9.86 + 4.85 + 51

= 95.19

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Charging someone higher interest on a loan because they missed a payment in the past is.

Answers

The correct statement is that the charging of higher interest to a person missing a payment is known as risk-based lending and is not a secured form of a loan.

hazard-based lending happens whilst creditors provide clients distinctive hobby costs or other mortgage terms, primarily based on the expected chance that the consumers will fail to pay returned their loans. usually, banks and credit score unions decide loan hobby fees for the use of greater than just your credit score.

danger-primarily based lending is a method with the aid of which a credit score union may be able to extra effectively meet the credit score wishes of all its participants. It entails putting a tiered pricing structure that assigns loan quotes primarily based on a person's credit score chance. The hazard-primarily based Pricing Rule calls for you to inform purchasers if they're getting worse phrases due to data from their credit file.

risk-based lending is complex and calls for nicely-honed credit-granting skills. it can be an excessive-risk hobby that requires extra due diligence to correctly identify, degree, reveal and manipulate risk. chance-primarily based lenders can also find out that they underestimated the default risks and related collection expenses. credit score unions have to bear in mind the extra dangers inherent in risk-based totally lending and determine if those risks are desirable and controllable given the credit union’s personnel, financial situation, size, and stage of capital aid.

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Luc, a vehicle dealer, offers to sell mel a truck and trailer, which luc claims can haul a certain weight. He knows nothing about the capability of the truck, but it is not as he asserts. Mel buys the truck. On learning the truth, mel confronts luc, who says he was not trying to fool mel—he was only trying to make a sale. This is.

Answers

On learning the truth, Mel confronts Luc, who says he was not trying to fool me—he was only trying to make a sale. This is Fraudulent Misrepresentation.

Fraudulent misrepresentation is a civil tort bobbing up out of agreement regulation. it's miles a false announcement of the fact that causes or induces a person to go right into an agreement. A defendant commits fraudulent misrepresentation whilst he or she lies or misrepresents a crucial truth approximately which will cause or induce the opposite celebration to go into right into an agreement. The misrepresentation may be inside the shape of whatever is designed to deceive the opposite birthday party consisting of innuendos, half of-truths, or silence whilst there exists a responsibility to talk.

Fraudulent misrepresentation is a distinct prison declaration from defamation. Fraudulent misrepresentation is an agreement claim arising out of fraud that happens in breach of agreement instances, whilst defamation is a false assertion of fact made about someone.

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Located on a college campus, howie's hot dog hut charges $3. 99 for its deluxe dog basket. However, students receive a 10 percent discount off the price for showing their student id. This is an example of.

Answers

Price discrimination is demonstrated by the discount given to students who purchase the hot dog.

How Does Price Discrimination Occur?

Price discrimination is a marketing tactic where sellers charge clients various prices for the same good or service depending on what they believe will win the customer over. A merchant that practices pure price discrimination will impose the highest price possible on each customer. The more typical types of price discrimination involve the vendor classifying clients into groups according to particular characteristics and charging each group a different price.

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quaker, maker of oatmeal-based breakfast cereals, recently introduced a completely new family of oat-based beverages to compete with nondairy milk products. what is this strategy called?

Answers

This strategy is called as Brand Extension.

Explanation:

When a business applies one of its well-known brand names to a new product or new product category, this is known as brand extension. Sometimes people refer to it as "brand stretching." The goal of a brand extension is to assist a company launch its newest product by leveraging its existing brand equity. The business depends on its existing clientele's brand loyalty, which it hopes will make them more receptive to new products from the same brand. If it is successful, a brand extension can assist a business in reaching new demographics, growing its clientele, boosting sales, and increasing overall profit margins.

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A teacher recently retired at age 63 and has a tax sheltered annuity (TSA). Periodic deposits total $120,000 and the value of the contract is now worth $200,000. How much is taxed if the current value is surrendered today?
a. $200,000
b. $80,000
c. $120,000
d. $0

Answers

A. $200,000 is taxed if the current value is surrendered today.

Current value, an accounting method wherein property are priced consistent with their substitute fee in preference to their unique fees. present day yield, an estimate of the annual profits of an funding this is based on dividing the whole profits by way of the current charge.

The honest price of the stock is a subjective time period calculated using cutting-edge economic statements, marketplace function, and viable growth fee from a fixed of metrics. In assessment, the market cost is the current proportion fee at which the stock or asset is traded. honest value is the maximum used time period for valuing an asset.

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manufacturers like ________ because it allows them to offer price cuts to consumers directly, rolling them out and shutting them off quickly.

Answers

manufacturers like rebates because it allows them to offer price cuts to consumers directly, rolling them out and shutting them off quickly.

Price lining is the practice of simultaneously releasing multiple iterations of the same good or service at various price points. It suggests that a product has both standard, affordable options and premium options with added features and advantages. A straightforward rebate example is a volume incentive, where a customer could get a discount for purchasing a specific amount of a product over the course of the deal. For instance, a 5% rebate might be stipulated in an annual rebate agreement as long as over 1,000 units of a $100 product are purchased.

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debt usage will have an effect on: multiple choice financial risk. asset risk. business risk. operational risk.

Answers

Debt usage will affect financial risk.

Financial risk is the type of risk where losses can be incurred by investing in a business or an investment. Parties taking the financial risk can face loss of capital.

Financial risk is the management of the debts and completion of financial obligations. These types of risks can occur in various ways such as business instability, interest rates, currencies, financial market, or movements.

There are various types of financial risks such as operational risk, market risk, investment risk, liquidity risk, or credit risk. Financial risk could occur in any form such as delay in delivery of the goods or increasing amount of debt on the business.

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