Your business partner is strongly opposed to your proposal to charge your largest customers lower prices for your web-based services than you will charge your smaller customers. Your business partner is arguing it is unethical. Explain why both customers will be satisfied with the deal? What kind of price discrimination is this type of segmentation? How will the plan increase revenue?
In: Economics
Togbi and Mama were partners sharing profits and losses in the ratio 2:1 respectively. The following trial balance was extracted from their books on 31st December, 2004
|
Details |
GH¢ |
GH¢ |
|
Capital Accounts: Togbi |
14,000 |
|
|
Mama |
7,000 |
|
|
Drawings Accounts: Togbi |
3,400 |
|
|
Mama |
2,200 |
|
|
Current Accounts: Togbi |
700 |
|
|
Mama |
500 |
|
|
Office equipment at cost |
1,144 |
|
|
Stock in trade (1/1/2004) |
10,000 |
|
|
Trade Debtors and creditors |
8,100 |
6,175 |
|
Purchases and sales |
76,000 |
102,000 |
|
Freehold property |
9,250 |
|
|
Wages and salaries |
12,727 |
|
|
Rates and rent |
366 |
78 |
|
General expenses |
4,000 |
|
|
Cash and Bank |
1,204 |
1,000 |
|
Discounts |
2,000 |
340 |
|
Returns |
177 |
175 |
|
Total |
131,128 |
131,128 |
Additional Information:
Required: all workings must be shown clearly, prepare
In: Accounting
Posa Hotels, Inc., has a sixth night free policy. Every sixth night a guest stays at the hotel is free. Because not all guests stay enough nights to earn a free stay, on average the number of free nights redeemed is 70% of the maximum possible number of free nights available one obtains by dividing the total number of paid nights the hotel has had by 5. Rooms at Posa Hotels cost $300 per night. In 2019, Posa had a total of 100,000 paid room-nights and collected a total of $30 million from customers. Also in 2019, customers redeemed a total of 10,000 free room-nights. Some of the room-nights awarded were based on customers paid nights from previous years and some were based on paid nights from the current year. Required: Prepare journal entries to record revenue for 2019 for Posa. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) 1)Prepare the entry to record the revenue recognized for the nights paid by customers. 2)Prepare the entry to record the revenue recognized for the free nights redeemed by customers.
In: Accounting
GM, Ford, and Tesla are automobile companies. Or are they? Explain how valuing Tesla and Ford may differ from valuing GM? Which stock is the most expensive? How did you determine which company was the most expensive? Do you think intangible assets are a larger share of total company assets today than 3-4 decades ago? How has this change made the valuation of business more difficult or easier? How could or would you measure intangible assets of a publicly listed firm? What type of companies have a large share of their assets tied up in intangibles (e.g. manufacturing, retailers, etc.). Explain why this is likely the case.
In: Finance
Common-Sized Income Statement
Revenue and expense data for the current calendar year for Sorenson Electronics Company and for the electronics industry are as follows. Sorenson Electronics Company data are expressed in dollars. The electronics industry averages are expressed in percentages.
| Sorenson Electronics Company |
Electronics Industry Average |
||||
| Sales | $1,710,000 | 100 | % | ||
| Cost of goods sold | (1,162,800) | (71) | |||
| Gross profit | $547,200 | 29 | % | ||
| Selling expenses | $(307,800) | (12) | % | ||
| Administrative expenses | (119,700) | (11) | |||
| Total operating expenses | $(427,500) | (23) | % | ||
| Operating income | $119,700 | 6 | % | ||
| Other revenue and expense: | |||||
| Other revenue | 34,200 | 4 | |||
| Other expense | (17,100) | (3) | |||
| Income before income tax | $136,800 | 7 | % | ||
| Income tax expense | (51,300) | (4) | |||
| Net income | $85,500 | 3 | % | ||
a. Prepare a common-sized income statement comparing the results of operations for Sorenson Electronics Company with the industry average. If required, round percentages to one decimal place.
| Sorenson Electronics Company | |||
| Common-Sized Income Statement | |||
| Sorenson Electronics Company Amount |
Sorenson Electronics Company Percent |
Electronics Industry Average |
|
| Sales | $1,710,000 | % | 100% |
| Cost of Goods Sold | (1,162,800) | % | (71)% |
| Gross profit | $547,200 | % | 29% |
| Selling Expenses | $(307,800) | % | (12)% |
| Administrative Expenses | (119,700) | % | (11)% |
| Total operating expenses | $(427,500) | % | (23)% |
| Operating income | $119,700 | % | 6% |
| Other revenue and expense: | |||
| Other revenue | 34,200 | % | 4% |
| Other expense | (17,100) | % | (3)% |
| Income before income tax | $136,800 | % | 7% |
| Income tax expense | (51,300) | % | (4)% |
| Net income | $85,500 | % | 3% |
In: Accounting
On January 1, 2015, the ledger of Accardo Company contains the following liability accounts. Accounts Payable $52,420 Sales Taxes Payable 7,150 Unearned Service Revenue 16,740 During January, the following selected transactions occurred.
Jan. 5 Sold merchandise for cash totaling $16,740, which includes 8% sales taxes.
Jan 12 Performed services for customers who had made advance payments of $11,320. (Credit Service Revenue.)
Jan 14 Paid state revenue department for sales taxes collected in December 2014 ($7,150).
Jan 20 Sold 950 units of a new product on credit at $50 per unit, plus 8% sales tax.
Jan 21 Borrowed $24,750 from Girard Bank on a 3-month, 8%, $24,750 note.
Jan 25 Sold merchandise for cash totaling $7,560, which includes 8% sales taxes.
1) Journalize the adjusting entries at January 31 for the outstanding notes payable. (Hint: Use one-third of a month for the Girard Bank note.)
2) Prepare the current liabilities section of the balance sheet at January 31, 2015. Assume no change in accounts payable.
Date Account Titles and Explanation Debit Credit
In: Accounting
Report Writing
Select any publicly listed Saudi Company that operates in GCC, and write a (minimum of 1000 word) report covering the following points:
with references please
In: Operations Management
A businessman asks you to produce a profitability profile of his customers. Once you have provided it, he remarks: "So I should drop all those customers where the costs of servicing the customer exceed the revenue from that customer?" Answer him and explain
In: Accounting
A businessman asks you to provide a profitability profile of his customers. Once you have provided it, he remarks: "so i should drop all those customers where the costs of servicing the customer exceed the revenue from that customer?" Answer him and explain.
In: Accounting
Justine is a smartphone developer, her free app currently has 500 000 users. She is thinking of making a premium version. She assumes that for each 5$ increase in price the number of paying customers decreases by a factor of 1/2, i.e. half of her current paying customers will stop paying for her app.
(a) If pp is the price in dollars and CC is the number of paying customers, find the exponential function
C=f(p)
that models this situation.
(b) Her total revenue
R
is given by the number of paying customers times the price of the app, or
R=p⋅f(p).
Give the formula for dR/dp.
(c) Suppose that Justine is selling her app for 10$$. Compute dR/dp|p=10. Given this result, should Justine increase or decrease the price to get more revenue. Give a brief justification involving units.
In: Economics