Contribution margin ratio is 24%
Contribution margin ratio = 100% - Variable expense%
=100%-76%
=24%
Contribution Margin:
You can provide the contribution margin as a gross or per-unit figure. After removing the variable element of the company's expenditures, it indicates the additional revenue made for each product or unit sold.
By subtracting the variable cost per unit from the selling price per unit, the contribution margin is calculated. The metric, which is often referred to as dollar contribution per unit, shows how much a certain product adds to the company's overall profit.
It offers a means of illustrating the profit potential of a certain item or service a business offers, as well as the percentage of revenue that goes toward paying the business' fixed expenses. Profit is defined as whatever income that remains after paying fixed costs.
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Joanne runs a company that produces mattresses. Her fixed costs include electricity and labor. She recently increased the capacity of production, which increased these fixed costs. What has Joanne done to the production of her company?
Joanne has ____ the production.
Answer:
not sure but increased seems right
Explanation:
Because she increased the capacity of production which increased these fixed cost, then, she has decreased expected profit of the production.
What does increased Fixed cost do?In production, any increase in fixed cost will increase total cost and will impct on level of profit which will decrease.
In conclusion, as she increased the capacity of production which increased these fixed cost, then, she has decreased expected profit of the production.
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Mei starts a job with a $72,000 annual salary that is paid twice a
month. How much should she expect her gross pay to be on her
first paycheck?
$3000
Explanation:
just diveide the number by 24
Borrowing money or creating debt, at different times of life, are components of which building block?
Borrowing money or creating debt, at different times of life, are components of "nature of debt" of building block.
What is debt?Debt is defined as something borrowed from another party, usually money. Many organizations and individuals utilize debt to finance major expenditures that they could not otherwise afford.
Some key features regarding the debt are-
Debt is defined as money borrowed from one party by another.Many businesses and individuals use debt to make major purchases that they would not be able to do under normal circumstances.A debt-based financial agreement allows the borrowing party to borrow money on the condition that it be paid back later, usually with interest.Debt is categorised into four types: secured, unsecured, revolving, and mortgaged.To raise capital, company issues debt in the shape of bonds.To know more about debt, here
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If you spend more in a month than is expected in your budget, what are your two options?
Answer:
It's hard to define how much should be left over each month after paying all your personal finances as they are different for everyone. But to generalize it, the 50/20/30 rule is applicable to most of us. According to this rule, up to 50% of your income goes to fixed spending, 20% would go to savings.
Explanation:
E16-4. On January 1.2013, when its $30 par value common stock was selling for $80 per share, Plato Corp. issued $10,000,000 of 8% convertible debentures due in 20 years. The conversion option allowed the holder of each $1000 bond to convert the bond into five shares of the coporation's common stock. The debentures were issued for $10,800,000. The present value of the bond payments at the time of issuance was $8,500,000, and the corporation believe the differnece between the present value and the amount paid is attributable to the conversion feature. On January 1, 2014, the corporation's $30 par value common stock was split 2 for 1, and conversion rate for the bonds was adjusted accordingly. On January 1, 2015, when the corporation's $15 par value common stock was selling for $135 per share, holders of 30% of the convertible debentures exercised their conversion options. The corporation uses a straight line method for amortizating any discounts or premiums.Instructions(a) Prepare in general journal form the entry to record the original issuance of the convertible debentures(b) Prepare in general journal form the entry to record the exercise of the conversion option, using the book value method. Show supporting computation in good form.
Answer:
A. Dr Cash Account $10,800,000
Cr To Bonds Payable $10,000,000
Cr To Premium Payable $800,000
B.Dr Bonds Payable account $3,000,000
Dr Premium on bonds payable Debited $2,700,000
Cr To Common Stock $7,500
Cr Additional paid in capital $5,692,500
Explanation:
(a) Preparation of the journal entry to record the original issuance of the convertible debentures
Dr Cash Account $10,800,000
Cr To Bonds Payable $10,000,000
Cr To Premium Payable $800,000
($10,000,000*8/100=$800,000)
(Being issue of share on convertible debenture)
b.Preparation of the journal entry to record the exercise of the conversion option, using the book value method
Dr Bonds Payable account $3,000,000
Dr Premium on bonds payable Debited $2,700,000
Cr To Common Stock $7,500
Cr Additional paid in capital$5,692,500
($3,000,000+$2,700,000-$7,500)
(Being maintain the record of outstanding conversation of debenture)
Calculation for for BONDS CONVERTED
First step is to calculate the amortization for 2013
Amortization for 2013=$10,000,000/20
Amortization for 2013=$500,000
Second step is to calculate the amortization for 2014
Amortization for 2014=$10,000,000/20
Amortization for 2014=$500,000
Third step is to Calculate the premium on bonds payable
Premium on bonds payable=$10,000,000−($500,000+$500,000)
Premium on bonds payable=$9,000,000
Now let calculate the bonds converted
Bonds converted=$9,000,000×30/100
Bonds converted=$2,700,000
Calculation for COMMON STOCK
First step is to calculate the number of bonds
Number of bonds=$10,000,000/1000
Number of bonds=10,000
Second step is to calculate Price for the bond
Price for the bond=10,000×5
Price for the bond=50,000
Third step is to Calculate for Stock Split
Stock Split=50,000/2
Stock Split=25,000
Now let calculate the common stock
Common stock=25,000×30/100
Common stock=7,500
Calculation for BONDS PAYABLE
Bonds Payable=10,000,000×30/100
Bonds Payable=3,000,000
Answer:
my own answer is 7500x30=225000
Assume that a monopolist faces the demand schedule given below, and a constant marginal cost of $2 for each unit of output. To maximize profits, this monopolist would produce what number of units of output and charge what price per unit
Emilio is photographing a series of hills on his uncle's farm. He remembers that he needs to try to add a foreground to his image to make it appear three dimensional. How is he MOST LIKELY to add this foreground? A. B. C. D. He might change his position to include some foreground items such as rocks or grasses. He might tilt his camera up to better capture the tops of the hills. He might add some framing trees in the middleground of his image. He might circle around to the side of the hills to capture the cows standing on top. PLS HELP!!
Emilio is photographing a series of hills on his uncle's farm. He remembers that he needs to try to add a foreground to his image to make it appear three-dimensional. He is most likely to add this foreground Option A. He might change his position to include some foreground items such as rocks or grasses.
The foreground of an image is usually the element that is closest to the viewer. The foreground is often used to add depth to an image. If a photographer wants to create a 3D appearance in his image, he must ensure that the image has a foreground, mid-ground, and background. It is possible to include a foreground in a photo by modifying the angle of the shot and including elements in the foreground.
Emilio might change his position to include some foreground items such as rocks or grasses. By doing so, he will be adding depth to his image. Another way to add foreground to an image is to use framing trees in the middle ground of the image, but this may not provide the depth required. Tilt his camera up to better capture the tops of the hills or circling around to the side of the hills to capture the cows standing on top are not recommended, as the question seeks to add a foreground.
Therefore, Emilio is most likely to add the foreground by changing his position to include some foreground items such as rocks or grasses. Therefore, the correct option is A.
The question was incomplete, Find the full content below:
Emilio is photographing a series of hills on his uncle's farm. He remembers that he needs to try to add a foreground to his image to make it appear three-dimensional. How is he MOST LIKELY to add this foreground?
A. He might change his position to include some foreground items such as rocks or grasses.
B. He might tilt his camera up to better capture the tops of the hills.
C. He might add some framing trees in the middle ground of his image.
D. He might circle around to the side of the hills to capture the cows standing on top.
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The blank is the the minimum amount of your bill you must pay each month.
minimum payment
the least amount of money that must be paid at the end of a month
Distinguish between discretionary fixed costs and committed fixed costs.
Difference between committed and discretionary fixed costs is expenses that are fixed commitments of the firm that must be incurred to sustain operational continuity are referred to as committed fixed costs. Discretionary fixed costs are those expenses that are voluntary to the degree that the management's budgeting process determines their incurrence and value.
The expenditures necessary to maintain present production capacity are referred to as committed fixed costs or capacity costs. These expenses result from top managers' long-term choices on the scope and makeup of their firm.
An expense for a fixed asset or period-specific cost that may be eliminated or lowered without having an immediate effect on a business's reported profitability is known as a discretionary fixed cost.
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April is worried that she is not a "good speller," so she plans to let the spelling
checker correct all her mistakes. What would be the most helpful advice for
April?
WHAT ARE MANAGED SERVICE OPERATIONS?
Megha is a taekwondo expert who starts her own martial arts training academy. She conducts taekwondo classes for women and teaches them the art of self-defense. Megha can be regarded as a(n)
As Megha, who is a taekwondo expert that starts her own martial arts training academy, also conducts taekwondo classes for women and teaches them the art of self-defense, then, Megha can be regarded as an entrepreneur.
Who is an entrepreneur?This refers to the individual that starts and runs a business with limited resources, planning and responsible for all the risks and rewards of their business venture. Their business idea often entails a new product or service rather than an existing business model.
Because of the features possessed by an entrepreneur, therefore, Megha can be regarded as an entrepreneur because of her taekwando classes.
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NEED HELP ASAP 10 POINTS
The production, purchase, and sale of goods in a world-wide market is known as the _____.
Answer:
I think it's global economy
LEW Jewelry Co. uses gold in the manufacture of its products. LEW anticipates that it will need to purchase 500 ounces of gold in October 2020, for jewelry that will be shipped for the holiday shopping season. However, if the price of gold increases, LEW's cost to produce its jewelry will increase, which would reduce its profit margins.
To hedge the risk of increased gold prices, on April 1, 2020, LEW enters into a gold futures contract and designates this futures contract as a cash flow hedge of the anticipated gold purchase. The notional amount of the contract is 500 ounces, and the terms of the contract give LEW the right and the obligation to purchase gold at a price of $300 per ounce. The price will be good until the contract expires on October 31, 2020.
Assume the following data with respect to the price of the futures contract and the gold inventory purchase:
Date Spot Price for October Delivery
April 1, 2020 $300 per ounce
June 30, 2020 310 per ounce
September 30, 2020 315 per ounce
Instructions
Prepare the journal entries for the following transactions.
a. April 1, 2020—Inception of the futures contract, no premium paid.
b. June 30, 2020—LEW Co. prepares financial statements.
c. September 30, 2020—LEW Co. prepares financial statements.
d. October 10, 2020—LEW Co. purchases 500 ounces of gold at $315 per ounce and settles the futures contract.
e. December 20, 2020—LEW sells jewelry containing gold purchased in October 2020 for $350,000. The cost of the finished goods inventory is $200,000.
f. Indicate the amount(s) reported on the balance sheet and income statement related to the futures contract on June 30, 2020.
g. Indicate the amount(s) reported in the income statement related to the futures contract and the inventory transactions on December 31, 2020.
a. April 1, 2020—Inception of the futures contract, no premium paid.
To record the inception of the futures contract:
Debit: Futures Contract Asset (500 ounces * $300 per ounce)
Credit: Futures Contract Liability (500 ounces * $300 per ounce)
b. June 30, 2020—LEW Co. prepares financial statements.
No journal entry is required on this date as it is an interim reporting date.
c. September 30, 2020—LEW Co. prepares financial statements.
No journal entry is required on this date as it is an interim reporting date.
d. October 10, 2020—LEW Co. purchases 500 ounces of gold at $315 per ounce and settles the futures contract.
To record the purchase of gold and settlement of the futures contract:
Debit: Gold Inventory (500 ounces * $315 per ounce)
Debit: Futures Contract Liability (500 ounces * $300 per ounce)
Credit: Cash (500 ounces * $315 per ounce)
e. December 20, 2020—LEW sells jewelry containing gold purchased in October 2020 for $350,000. The cost of the finished goods inventory is $200,000.
To record the sale of jewelry:
Debit: Accounts Receivable (or Cash) ($350,000)
Credit: Sales Revenue ($350,000)
Debit: Cost of Goods Sold ($200,000)
Credit: Finished Goods Inventory ($200,000)
f. Indicate the amount(s) reported on the balance sheet and income statement related to the futures contract on June 30, 2020.
The futures contract is reported on the balance sheet as follows:
Asset:
Futures Contract Asset (Mark-to-market value on June 30, 2020)
Liability:
Futures Contract Liability (Mark-to-market value on June 30, 2020)
There will be no impact on the income statement on June 30, 2020, as it is an interim reporting date.
g. Indicate the amount(s) reported in the income statement related to the futures contract and the inventory transactions on December 31, 2020.
The income statement for December 31, 2020, will include the following amounts:
Futures Contract:
Any change in the fair value of the futures contract from September 30, 2020, to December 31, 2020, will be recognized as a gain or loss on the futures contract.
Inventory Transactions:
The cost of goods sold will include the cost of the finished goods inventory sold ($200,000).
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Do you think you should use a zero-based budgeting system? Explain why or why not.
. Compared to a human, what is different about how the sea sponge gets molecules from food and air?
Answer:
They're very simple creatures, though: a sponge doesn't have a respiratory system, a digestive system, or a circulatory system. Instead, sponges rely on the flow of water through their bodies to bring them food and oxygen and carry waste away.
Explanation:
A sponge lacks a respiratory, digestive, or circulatory system, making them straightforward creatures. Instead, sponges depend on water movement through their bodies to provide them with food, and oxygen, and to remove waste.
How does a sponge obtain food and oxygen?However, because sponges have multiple cells and must consume food, they are considered to be animals. Food, water, and oxygen are necessities for all living things. Food is obtained by sponges by filtering the water that enters their pores. The water that the sponge inhabits provides oxygen as well.
In order to obtain dissolved oxygen and suspended food, sponges, which are ancient filter-feeding animals, must constantly have water flowing through them. They eliminate waste by discharging it into the same current of water because they lack a nervous, digestive, or circulatory system.
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True or false: Corporate Social Responsibility (CSR) and corporate profits can at times go hand in hand.
True false question.
True
False
Answer:
TRUE
Explanation:
I think that answer
4. Why did Cheetah Mobile hire local employees, from management to the grassroots level, instead of assigning employees from its home country
Cheetah Mobile hired local employees, from management to the grassroots level, instead of assigning employees from its home country because it operates in more than 100 countries.
Therefore, it was imperative to hire local employees who have a better understanding of the local customs, language, laws, and regulations. These local employees would be more capable of tailoring the product offerings to the local markets, building the brand reputation.
Hiring local employees can help companies establish a strong local presence and build relationships with local customers, suppliers, and partners. Here are some of the key benefits of hiring local employees: Improved communication: Local employees have a better understanding of the local language and culture.
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How does free trade benefit businesses? For example, how does it encourage
investment?
Answer:
Liberating exchange decreases imported-input costs, consequently diminishing businesses creation costs and advancing financial development. Deregulation improves proficiency and advancement. The outcomes are higher wages, interest in such things as foundation, and a more unique economy that keeps on making new openings and openings.
demand for cigarettes tends to be price inelastic. if the government increased the cigarette tax, what would likely happen?
Demand for cigarettes tends to be price inelastic. if the government increased the cigarette tax, Demand would be slightly lower but tax income would rise.
Cigarette use would decline as a result of an additional tax being added to the price, and tax receipts would rise. Additionally, smoking-related ailments would be less common as a result.
The additional tax money from the tax hike might be utilised to improve public services and make up for the existing financial shortfall of Taiwan's National Health Insurance programme. Taxes may be more onerous for consumers or producers, depending on the situation.
Because they are an addictive substance, cigarettes, for instance, have an inelastic demand, and taxes are primarily passed on to consumers as higher prices.
Tax incidence refers to the examination or manner of how the cost of a tax is distributed between consumers and producers.
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in many areas, purchasing or renting land for a tiny home requires compliance with local building codes. which of the following versions of the underlined text would best accomplish this goal? responses (as it is now) (as it is now) costs more than the home itself costs more than the home itself is an inconvenient and time-consuming process is an inconvenient and time-consuming process can be avoided if a friend is willing to share land can be avoided if a friend is willing to share land may be unnecessary if the homeowner claims to be camping
In many areas, purchasing or renting land for a tiny home requires compliance with local building codes, which is an important factor to consider.
It may be tempting to avoid this process or look for ways around it, such as sharing land with a friend or claiming to be camping. However, these options may not be feasible or legal in some areas. It's essential to research the local regulations and ensure that your tiny home meets all the necessary requirements to avoid legal issues and potential fines. While it may add some additional cost and time to the process, complying with building codes is crucial for your safety and the longevity of your tiny home.
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SoftLink International has issued a 20-year bond. The bond has a coupon rate of 7% APR with annual coupon payments. It currently has a price of $1015 and a face value of $1000. a. What is the bond's yield to maturity? b. What is the bond's yield to maturity if instead the coupon payments were made semiannually and the coupon rate was still 7% APR? Answer in yearly format c. Now ignore your answers to a) and b) and assume that the bond has a yield to maturity of 5% APR and have semiannual coupon payments with a coupon rate of 7% APR. The face value is still $1000 and it's a 20-year bond. What would the price of this bond be? Answer in dollar amount with two decimals (i.e. 999.99)
Yield to maturity(YTM) of the bond with annual coupon payment is 6.58%. Yield to maturity of the bond with semi-annual coupon payment and coupon rate of 7% APR is 6.70%. Price of the bond will be $1225.91.
a.
Let P = $1015, F = $1000, r = Yield to maturity(YTM), n = 20 and C = $70.
Using the formula of bond price, we can calculate the yield to maturity of the bond.
The formula for bond price is,
P = C * [(1 - (1 + r)^-n)/r] + F/(1 + r)^n
where,
P = Price of bond,
C = Annual coupon payment,
r = Yield to maturity(YTM),
F = Face value of bond,
n = Number of years to maturity
Using the above values, we get
1015 = 70 * [(1 - (1 + r)^-20)/r] + 1000/(1 + r)^20
By trial and error method, we get yield to maturity as 6.58%.
Therefore, Yield to maturity of the bond with annual coupon payment is 6.58%.
b.
Let P = $1015, F = $1000, n = 20, C = $35 and r = Yield to maturity(YTM).
In this case, the coupon payments are made semi-annually. Therefore, we need to adjust the parameters of the bond price formula accordingly.
We divide the annual coupon payment by 2, multiply the number of years to maturity by 2 and divide the yield to maturity by 2.Using the formula of bond price, we can calculate the yield to maturity of the bond.
The formula for bond price is,
P = C * [(1 - (1 + r)^-n)/r] + F/(1 + r)^n
For semi-annual coupon payment, we can use the above formula by dividing the annual coupon payment by 2 and multiply the number of years by 2.
Using the above values, we get
1015 = 35 * [(1 - (1 + r/2)^-40)/(r/2)] + 1000/(1 + r/2)^40
By trial and error method, we get yield to maturity as 6.70%.
Therefore, Yield to maturity of the bond with semi-annual coupon payment is 6.70%.
c.
Let P be the price of the bond, F = $1000, n = 20, C = $35 and r = Yield to maturity(YTM).
In this case, Yield to maturity of the bond is given as 5% APR and coupon payment is semi-annual with a coupon rate of 7%.
Therefore, we need to adjust the parameters of the bond price formula accordingly. We divide the annual coupon payment by 2, multiply the number of years to maturity by 2 and convert the yield to maturity from annual to semi-annual.
Using the formula of bond price, we can calculate the price of the bond.
The formula for bond price is,
P = C * [(1 - (1 + r/2)^-n)/(r/2)] + F/(1 + r/2)^n
Since YTM is given as 5%, the semi-annual yield to maturity would be r = 5% / 2 = 2.50%.
Using the above values, we get,
P = 35 * [(1 - (1 + 0.025)^-40)/0.025] + 1000/(1 + 0.025)^40P = $1225.91
Therefore, the price of the bond would be $1225.91.
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1. Your friend asks to borrow $50 and offers to pay you back with interest. What factors
would you consider in your decision to accept or decline their request?
The factors that you have to think about would before giving out the loan would be the following:
The loan periodThe ability to pay back the loanThe interest that is on the loanHow the money is to be returned.What is a loan?This is the term that is used to refer to an amount of money that would be given to a person that is the borrower by the lender for a period pf time and for them to pay back with interest.
To be able to determine if you are to give out a loan, you have to take the ability of the person to pay you back the amount as a fator.
Also you have to check the character of the person that you are to loan the money to.
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Telmart, a retail chain, records high sales volume for most of its outlets. Some of its outlets that have low sales volume have conducted surveys for their consumers in order to understand the reasons behind this. The surveys reveal that the average customer in these outlets believes that price is an indicator of quality and thus, prefers higher priced brands over lower priced brands. The research conducted by telmart exemplifies:.
The research that Telmart did exemplifies what we know as Demand Analysis.
What is Demand Analysis?Refers to research that is done to see what influences customer demand. Is often done by companies to increase demand for their goods.In finding out why some outlets did not have high sales, Telmart was trying to find out what drove customer behavior so this is Demand Analysis.
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Activity 3
Calculate Profit
Answer: See explanation
Explanation:
Profit is calculated as:
= Selling price - Cost price
1. Selling price = 1353
Cost price = 1230
Profit = Selling price - Cost price
= 1353 - 1230
= 123
2. Selling price = 1350
Cost price = 900
Profit = Selling price - Cost price
= 1350 - 900
= 450
3. Selling price = 1500
Cost price = 1200
Profit = Selling price - Cost price
= 1500 - 1200
= 300
4. Selling price = 2960
Cost price = 850
Profit = Selling price - Cost price
= 2960 - 850
= 2110
Carmen is in the process of buying a car. She knows she needs a car loan, but she is unsure about which financial institution she should obtain the car loan from. Should she take out a loan with a loan period of four years? Five years? Six years? She has $3,000 for the down payment, and the cost of the car after-tax and license fees will be $8,500. She has a credit score of 620. Her budget will allow her to make payments as high as $150 per month. Remember, the goal is to find the most cost-effective option. Which car loan should Carmen choose?
Answer:
She should take out a loan with a loan of 5 years period. In the cost and benefit term, it would better to take out the shorter loan period because automobile price tends to decrease in the following year after it has been bought. However, Carmen will not be able to fulfill the 4-year loan payment for each month, because the average auto loan interest rate for a person with 620 credit score is 9.48%. Carmen able to pay 7.72% ((48 x 150)-(8,500-3,000))/(8,500-3,000) interest on 4-year loan and 12.72% ((60 x $150)-($8,500-$3,000))/($8,500-$3,000) on 5-year loan. It would be a safe decision to choose the 5-year loan because Carmen still able to pay the loan interest.
Explanation:
What is the effect of expansionary monetary policy?
Expansionary monetary policy is a monetary policy tool used by central banks to stimulate the economy by increasing the money supply. The goal of expansionary monetary policy is to increase spending and investment, which can result in lower unemployment and increased economic growth.
Expansionary monetary policy works by lowering interest rates, making it cheaper for consumers and businesses to borrow money. This can increase spending and investment in the economy, which in turn can boost economic growth. For example, if interest rates are low, consumers may be more likely to take out a loan to purchase a home or a car, and businesses may be more likely to borrow money to expand their operations or invest in new technologies.
Expansionary monetary policy can also affect the value of a country's currency. If a central bank implements expansionary monetary policy, it may lead to a decrease in the value of the currency, making exports cheaper and more competitive in the global market. This can result in increased exports and higher economic growth for the country.
However, expansionary monetary policy can also have negative effects. For example, if the increase in money supply leads to inflation, it can erode the purchasing power of the money and make it more expensive for consumers to buy goods and services. Additionally, expansionary monetary policy can lead to asset bubbles, where prices for assets such as stocks and real estate increase beyond their fair value, which can have negative consequences when the bubbles eventually burst.
In conclusion, the effect of expansionary monetary policy can be positive in terms of increasing spending, investment, and economic growth, but it can also have negative consequences, such as inflation and asset bubbles. Central banks must carefully consider the potential consequences before implementing expansionary monetary policy.
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The overall value of a brand to an organization the extra money that consumers will spend to buy that brand is called
brand
a. equity
b.experience
c. awareness
d. extension
Answer:
Extension is the answer
William wrote a check for $150.00 for his gas bill, but he only has 96.26 in his checking account. What will happen to the check when it is presented for payment
Answer:
The person will ask William to check his checking account and then William would have to lower the check amount he had previously wrote.
Explanation:
If you write a check or make a purchase for more than you have in your checking account, your bank may cover the difference. This line of credit offered by the bank is called overdraft protection. ... Furthermore, if your account remains overdrawn, your bank may also charge you daily interest on the loan.
Miguel is NOT very self-aware. How will this MOST likely affect his upcoming job search process?
A.
He will be able to clearly state what he is looking for in a future career.
B.
He will be offered several high-paying jobs that he will love.
C.
He will be able to find a great job that suits his goals and skills.
D.
He will have a tough time finding a job that fits his interests.
Answer:
D. He will have a tough time finding a job that fits his interests.
Explanation:
The other answers require a sense of self-awareness.