Eren Marketing Company sells specialty products( jewellery) to high income families with high social status. The market is highly competitive and it is very hard to differentiate the products. Explain the 4P's, explain how the company can offer value, and explain how to build long term relations with the customers.

Starbucks does have optimistic status for their great company culture. Do you believe customers can sense a difference between company owned stores and franchisee/licensee institutions? That would not be great for business as whole, particularly when that culture has some impact on selling $5+ lattes.

Holden Graham started The Graham Co., a new business that began operations on May 1. The Graham Co. completed the following transactions during its first month of operations. May 1 H. Graham invested $42,500 cash in the company. 1 The company rented a furnished office and paid $2,200 cash for May’s rent.. 3 The company purchased $1,900 of office equipment on credit. 5 The company paid $780 cash for this month’s cleaning services. 8 The company provided consulting services for a client and immediately collected $5,700 cash. 12 The company provided $2,600 of consulting services for a client on credit. 15 The company paid $780 cash for an assistant’s salary for the first half of this month. 20 The company received $2,600 cash payment for the services provided on May 12. 22 The company provided $3,100 of consulting services on credit. 25 The company received $3,100 cash payment for the services provided on May 22. 26 The company paid $1,900 cash for the office equipment purchased on May 3. 27 The company purchased $75 of advertising in this month’s (May) local paper on credit; cash payment is due June 1. 28 The company paid $780 cash for an assistant’s salary for the second half of this month. 30 The company paid $350 cash for this month’s telephone bill. 30 The company paid $290 cash for this month’s utilities. 31 H. Graham withdrew $1,800 cash from the company for personal use Enter the amount of each transaction on individual items of the accounting equation. Do not determine new account balances after each transaction. (Enter the transactions in the given order. Enter reductions to account balances with a minus sign.) thank you :) what is their cash flows statement?

Required information

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Gabi Gram started The Gram Co., a new business that began operations on May 1. The Gram Co. completed the following transactions during its first month of operations.

Required:

1. Enter the amount of each transaction on individual items of the accounting equation. Do not determine new account balances after each transaction. (Enter the transactions in the given order. Enter reductions to account balances with a minus sign.)

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Record companies prioritise their new releases of music each by the senior management deciding on which new releases should receive priority in marketing to radio stations and music stores. Here the musician might be considered a ‘principal’ who uses the services of the record company, the ‘agent’, to produce and market their sound recording. Does the description of the prioritising of new releases suggest that an incentive problem may arise between the principal and agent? Evaluate and comment upon the following types of contracts from the musician’s perspective. The record company receives a fixed amount of total revenue. The record company receives a fixed amount of total revenue plus payment for the costs of advertising. The record company receives a proportion of the total profits.

Use the information below to answer the following questions.

The demand and supply curves facing a company producing a brand of coconut juice, orange Juice, are respectively given as follows:Qd =50-5PQs=2+3P.The company is contemplating to increase the price of the orange juice as a measure to raise more revenue to support a planned expansion programme.

Questions
i.What is the equilibrium price and quantity for the orange Juice?
ii. What is the price elasticity of
demand for the orange Juice?
iii. As the marketing director of the company do you consider the intended increase in price of orange Juice advisable? Explain your choice.
iv. How best can the company achieve its objective of raising more revenue?

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Media Mogul Inc.

Media Mogul Inc. is a marketing company that offers a variety of marketing offerings to its customers.

Specifically:

• Media will create a TV commercial for $1M, build an app for $500K, and build a Facebook page for

$250K. These amounts represent Media’s charges for these items when Media sells them separately to

customers. The TV commercial, the app, and the Facebook page are not interrelated; that is, each

functions independently of the other offerings.

• If a customer purchases all aforementioned items together, the total cost is $1.5M. Payment terms are

50 percent consideration due at contract signing, with the remaining 50 percent due over the rest of

the development period (25 percent at mid-point, 25 percent at completion).

• If the app is downloaded 500K times or more in the first month, there is a one-time bonus of $250K

payable to Media.

Stone, a customer, approaches Media with the hopes of reinventing its image to a younger customer base.

Stone has a verbal agreement with Media that is based on Media’s unsigned quote to Stone on November 30,

20X5, for one TV commercial, one app, and a Facebook page. The agreement creates enforceable rights and

obligations pursuant to Media’s customary business practices. None of these items can be redirected by

Media to another customer. Media performed a credit check on Stone and has determined that Stone has the

intention and ability to pay Media for fulfilling its portion of the contract. Stone is required to pay Media for

performance completed to date if Stone cancels the contract with Media for reasons other than Media’s

failure to perform under the contract as promised.

Stone makes a payment on November 30, 20X5, in the amount of $750K pursuant to the agreement. From the

date of the quote, it takes Media six months to develop and produce the TV commercial, two weeks to

complete the Facebook page, and three months to complete a fully functioning app. Media does not think that

the app will be downloaded 500K times in the first month because Stone’s customer base does not quickly

accept newly developed technology. On the basis of its experience with similar technology, Media has

determined that it takes over three months for Stone’s users to begin to download its apps.

Required

Media’s CFO is trying to understand the new revenue recognition model and has asked you to explain how

Media would account for the above scenario under the new revenue recognition standard.

1. How should Media account for the above offering with Stone under the new revenue recognition

model?

2.How would your conclusions change if:

a. The app sold to Stone is actually downloaded more than 500K times in the first month?

b. Media believed at the outset that there is about a 75 percent chance that the app will be

downloaded more than 500K times and it is probable that there will not be a significant

reversal of revenue?

Santa's Christmas Tree Farm, a private company reporting under ASPE, grows pine, fir, and spruce trees. The company cuts and sells the trees for cash during the Christmas season. Most of the trees are exported to the United States. The remaining trees are sold to local tree lot operators.

It normally takes about 12 years for a tree to grow to a good size. The average selling price for a mature tree is $48. The owner of Santa's Christmas Tree Farm believes that the company should recognize revenue at the rate of $4 a year ($48/12 years) for each tree that it cuts. The biggest cost of this business is the cost of fertilizing, pruning, and maintaining the trees over the 12-year period. These costs average $40 a tree and the owner believes they should also be spread over the 12-year period.

Do you agree with the proposed revenue recognition policy for Santa's Christmas Tree Farm? Explain why or why not. Use the revenue recognition criteria to explain your argument for when the revenue should be recognized for this tree-farming business. Also, explain how the costs of fertilizing, pruning, and maintaining the trees should be recorded.

Trevorrow Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During June, the company budgeted for 5,600 units, but its actual level of activity was 5,560 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for June:

Data used in budgeting:

Actual results for June:

The overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for June would be closest to:

Multiple Choice

A $6,442 F

B $6,442 U

C $7,002 F

D $7,002 U

PLEASE SHOW STEPS

Floki Shipbuilding is considering purchasing a new fully integrated Computer Aided Design system. The new equipment can be purchased for $800,000 plus shipping and installation costs of $60,000. The company has already spent $55,000 on rewiring the rooms for the new system. The new machine is expected to have a useful life of seven years, at which time it will have a value of $130,000. The company estimates it will save $180,000 in annual operating cash outflows. Floki's weighted average cost of capital of 11% and its corporate tax rate is 31%. The CCA rate for the new system will be 30%. Floki plans to finance the new equipment with a bank loan requiring blended (i.e. principal and interest) quarterly payments of $58,000 over the next seven years. Use of this new system will reduce net operating working capital by $45,000.

Should Floki's Shipbuilding purchase this equipment? Show your work.