E-business involves re-evaluating the value-chain activities of a company. The value chain refers to the series of activities that a company goes through to create a product or service, from the initial conception to the final delivery.
Through e-business, companies can introduce various types of changes to the value chain, including the following:
1. Reducing costs: By implementing e-business practices, companies can often streamline their processes and reduce costs associated with traditional methods of business.
This can include automating tasks, reducing paperwork, and simplifying logistics.
2. Enhancing efficiency: E-business can also help companies to be more efficient in their operations, allowing them to complete tasks more quickly and accurately.
This can include using software to manage inventory, using e-procurement to streamline the purchasing process, and automating customer service tasks.
3. Increasing customer satisfaction: E-business can help companies to provide better customer service and improve customer satisfaction levels.
This can include offering online support, providing detailed product information, and enabling customers to track their orders.
4. Enabling innovation: E-business can also help companies to be more innovative in their product and service offerings.
This can include using data analytics to identify new market opportunities, offering customized products and services, and using social media to engage with customers in new ways.
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the price elasticity of demand for color printers is 1.6 and you would like to see the quantity demanded for color printers to increase by 32%. then the percentage change in price should be
The Price Elasticity of Demand for color printers is 1.6.
In order to increase the quantity demanded for color printers by 32%, the percentage change in price needs to be calculated. Price Elasticity of Demand is the percentage change in quantity demanded for a good in response to a 1% change in its price.
To calculate the percentage change in price needed to increase the quantity demanded by 32%, the following formula can be used:
Percentage change in price = 32%/1.6
This calculation results in a 20% change in price needed to increase the quantity demanded for color printers by 32%.
It is important to note that Price Elasticity of Demand (PED) is a measure of responsiveness of quantity demanded to a change in price. If the PED is greater than 1, the demand is said to be elastic and is sensitive to price changes. When the PED is less than 1, the demand is inelastic and is not very sensitive to price changes.
In conclusion, a 20% change in price is needed to increase the quantity demanded for color printers by 32%, as the Price Elasticity of Demand for color printers is 1.6.
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What name is given to the party who pays for the rights to use property in a lease agreement?
ANSWER: lessee
Answer:
lessee
Explanation:
noun
a person, group, etc., to whom a lease is granted.
When Apple decides what price to charge for an iPhone, they have to consider the costs to make it force would most affect Apple's production costs? Pestel What macro-environmental a) The state of the economy b) Consumer demographics c) Environmental regulations d) Consumer preferences
The macro-environmental force that would most affect Apple's production costs is c) Environmental regulations.
These regulations can impact the production costs by requiring the company to implement certain measures to reduce their environmental impact, which can increase the costs of production.
A macro environment refers to the set of conditions that exist in the economy as a whole, rather than in a particular sector or region. In general, the macro environment includes trends in the gross domestic product (GDP), inflation, employment, spending, and monetary and fiscal policy.
Other macro-environmental factors, such as the state of the economy, consumer demographics, and consumer preferences, can also affect the production costs, but they are not as directly related to the costs of production as environmental regulations are.
Therefore, it is important for Apple to consider the impact of environmental regulations on their production costs when deciding on the price to charge for an iPhone.
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Riley is 25 years old, and will soon be starting a career as a business analyst. According to Levinson, Riley is in the _____ phase of adult development
According to Levinson, Riley is in the Novice phase of adult development.
What is Business?This refers to the buying and selling of goods with the major aim of making profit.
Hence, we can see that based on the adult development phase, because Riley who is 25 years old and just starting out as a business analyst is in the novice phase.
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Last month, corporations supplied $250 billion in bonds to investors at an average market rate
of 11. 8%. This month, an additional $25 billion in bonds became available, and market rates
increased to 12. 2%. Assuming a Loanable Funds Framework for interest rates, and that the
demand curve remained constant, derive a linear equation for the demand for bonds, using
prices instead of interest rates
Answer:
Explanation:
To derive a linear equation for the demand for bonds using prices instead of interest rates, we need to convert the interest rates into prices. We can do this by using the loanable funds framework, which states that the interest rate is determined by the intersection of the supply and demand curves for loanable funds. In this case, the loanable funds are bonds.
Let's start by converting the interest rates into prices. The price of a bond is simply the present value of the future cash flows it generates, discounted at the market interest rate. Therefore, we can calculate the price of a bond using the following formula:
Price = Coupon Payment / (1 + Market Interest Rate)^n + Coupon Payment / (1 + Market Interest Rate)^(n-1) + ... + Coupon Payment + Face Value / (1 + Market Interest Rate)^n
where Coupon Payment is the annual coupon payment, n is the number of years until maturity, and Face Value is the face value of the bond.
Using the given data, we can calculate the prices of the bonds last month and this month as follows:
Last month:
Price = 250 / (1 + 0.118)^1 + 250 / (1 + 0.118)^2 + ... + 250 / (1 + 0.118)^n + 1000 / (1 + 0.118)^n
Price = 2144.37
This month:
Price = 25 / (1 + 0.122)^1 + 25 / (1 + 0.122)^2 + ... + 25 / (1 + 0.122)^n + 1000 / (1 + 0.122)^n
Price = 2136.87
Now that we have the prices of the bonds, we can use them to derive a linear equation for the demand for bonds. We know that the demand curve for bonds is downward sloping, meaning that as the price of bonds increases, the quantity demanded decreases. We can express this relationship using a linear equation of the form:
Qd = a - bP
where Qd is the quantity demanded, P is the price of bonds, a is the intercept, and b is the slope.
Using the values from the previous calculation, we have:
b = (Q1 - Q2) / (P2 - P1)
b = (1250 - 250) / (2136.87 - 2144.37)
b = -100
Substituting the value of b into one of the demand equations, we can solve for the intercept, a. Let's use the first equation:
Q1 = a - bP1
250 = a + 100(2144.37)
a = -212,887.5
Therefore, the correct linear equation for the demand for bonds using prices instead of interest rates is:
Qd = -212,887.5 - 100P
This equation shows that the quantity demanded of bonds decreases as the price of bonds increases.
Which of the following is correct?
A) The balance sheet section of the worksheet contains the data that is used to make closing entries.
B) The balance of the owner's drawing account will appear on the postclosing trial balance.
C) Closing entries are entered directly on the worksheet.
D) Preparation of the post closing trial balance is the last step in the end of period routine.
Preparation of the post-closing trial balance is the last step in the end of period routine is the correct option. Which makes D the correct option.
The post-closing trial balance is prepared after the closing entries have been made and the temporary accounts (such as revenue, expense, and drawing accounts) have been closed. It includes only the permanent accounts (such as asset, liability, and owner's equity accounts) and their balances after the closing process. The purpose of the post-closing trial balance is to ensure that the accounts are in balance and to serve as a starting point for the next accounting period. Therefore, option D is the correct statement.
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For each lease below identify whether the short-term lease recognition exemption would be available. Fill in the columns by dragging and dropping the options from below, and then select Submit.
Here is the analysis of whether the short-term lease recognition exemption would be available for each lease:
How to explain the leaseLease 1: Lease term: 11 months
Option to purchase: No
The short-term lease recognition exemption would be available for this lease because the lease term is 12 months or less and there is no option to purchase the underlying asset.
Lease 2:Lease term: 10 months
Option to purchase: Yes, but the lessee is not reasonably certain to exercise the option.
The short-term lease recognition exemption would be available for this lease because the lease term is 12 months or less and the lessee is not reasonably certain to exercise the option to purchase the underlying asset.
Lease 3: Lease term: 11 months
Option to purchase: Yes, and the lessee is reasonably certain to exercise the option.
The short-term lease recognition exemption would not be available for this lease because the lease term is 12 months or less, but the lessee is reasonably certain to exercise the option to purchase the underlying asset.
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Question 2 of 40
What does the 'P' in the acronym PEST stand for?
A. Price
B. Political
C. Promotion
O D. Positive
SUBN
Answer:
The answer would be B. Political.
Explanation:
PEST Analysis (Political, Economic, Social, and Technological) is a management method whereby an organization can assess major external factors that influence its operation in order to become more competitive in the market. As described by the acronym, those four areas are central to this model.
The 'P' in the acronym PEST stands for political. The correct option is B. Political, Economic, Social, and Technological analysis is known as PEST analysis. This kind of analysis is used to evaluate outside variables that might affect a company's profitability.
What is political in PEST analysis?The threats and weaknesses used in a SWOT analysis are found using a PESTEL analysis. Political factors include government leadership, change, and policies related to foreign trade, as well as internal political issues and trends, tax policy, and trends in regulation and deregulation.
A measurement tool called PEST Analysis is used to evaluate markets for a specific product or industry over a specific period of time. Political, Economic, Social, and Technological (PEST) factors Organizations can make better business decisions after these factors are analyzed.
Thus, the ideal selection is option B.
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They have fixed costs of £200 per month Each item's raw materials cost £50 The items sell for £150 each
What is the Break Even Point for the business?
Answer:
2 unit
Explanation:
The break-even point is that point at which a business makes no profit after settling all the necessary fixed cost for the period. It is the point preceding profit making at which costs are recovered
It is calculated by dividing the fixed costs with the sales revenue less the variable cost per unit of an item.
Workings
Fixed cost = 200
Selling price = 150
Variable cost = 50
Break even point = 200/(150-50)
=2 units
Any sales below this ends up in a loss as the fixed cost will not be fully recovered.
A factory can produce cars and trucks. If the price of cars increases, then the supply of trucks will
stay the same
decrease
Increase
Answer:
decrease
Explanation:
What is meant by 'business plan'?
A business plan is a written document that describes in great detail the goals and objectives of a company.
A business plan outlines a written strategy for the company's operations, finances, and marketing. Both new and established businesses use business plans.
It is a crucial document intended for both internal and external audiences of a company. Generally, it is not a good idea to operate without a business plan. In reality, very few companies can function without one for an extended period.
A business plan can also help a company's executive team stay on the same page concerning strategic action items and on track to achieve set objectives.
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the donut stop acquired equipment for $27,000. the company uses straight-line depreciation and estimates a residual value of $5,000 and a four-year service life. at the end of the second year, the company estimates that the equipment will be useful for four additional years, for a total service life of six years rather than the original four. at the same time, the company also changed the estimated residual value to $2,800 from the original estimate of $5,000. required: calculate how much the donut stop should record each year for depreciation in years 3 to 6.
Depreciation is the process of allocating costs over the course of an asset's life.
The donut shop needs to keep $4,750 in records every year from years three to six for depreciation.
What is depreciation?Depreciation: Depreciation is the process of allocating costs over the course of an asset's life. Assets with a lifespan of more than five years are referred to as long-lived assets. It is a cost of doing business. The units of production technique, the declining method, and the straight-line method can all be used to compute depreciation. Depreciation cannot be used to calculate the asset's real value.
Straight-line technique: This method divides the asset's life by the difference between its cost and residual value to calculate the amount of depreciation. In this system, the depreciation amount is distributed equally across the asset's useful life.
Depreciation for year 3 is $4750 and is calculated as follows:
Asset's cost was $27,000
less Depreciation (2 years) 8,000
Book Value $19,000
divide remaining life 4 yrs
$4,750 in depreciation
Therefore,The donut shop needs to keep $4,750 in records every year from years three to six for depreciation.
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jpak company manufactures and sells mountain bikes. it normally operates eight hours a day, five days a week. using this information, classify each of the following costs as fixed or variable with respect to the number of bikes made.
Fixed costs are those that do not change with the number of bikes made. Variable costs are those that change in direct proportion to the number of bikes made.
How to explain the informationFor example, the rent for the factory will be the same regardless of whether JPAK company makes 1 bike or 1,000 bikes. The salaries of the factory workers will also be the same regardless of the number of bikes made.
On the other hand, the cost of raw materials will increase as JPAK company makes more bikes. The cost of shipping will also increase as JPAK company makes more bikes. The commissions paid to sales staff will also increase as JPAK company makes more bikes
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Classifying assets liabilities and owners equity
1. Cash
2. Alice Jones, Capital
3. Prepaid insurance
4. Steward supply company (a creditor)
5. Supplies
6. Any amount owed
7. Owners capitol account
8. Anything owned
Logan has $3.15 worth of dimes and quarters. he has twice as many dimes as quarters. determine the number of dimes and the number of quarters that logan has.
Computation by the help of system of equations of the number of dimes and the number of quarters that Logan has: 14 dimes and seven quarters
What is system of equations?From the question, we have the following parameters that can be used in our computation:
Worth of coins = $3.15Type of coins = Dimes and quartersTwo times as many dimes as quartersRepresent the dimes with d and the quarters with qSo, we have the following representationd = 2qWhen the dimes and quarters are converted to dollars, we have the following representations0.10d + 0.25q = 3.15
Recall that
d = 2q
So, we have
0.10 * 2q + 0.25q = 3.15
Evaluate the products
0.45q = 3.15
Divide both sides by 0.45
q = 7
Recall that
d = 2q
So, we have
d = 2 * 7
Evaluate
d = 14
Hence, the number of dimes is 14.
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Respond to the DQ by cllicking Reply Week 7 Discussion 1 (First response due by Wednesday, two follow up responses due by Sunday) Is it possible for unemployment rates to increase at the same time that the number of employed persons is increasing? How?
It is indeed possible for unemployment rates to increase even when the number of employed persons is increasing.
This can occur due to various factors and dynamics in the labor market.
One possible explanation is an increase in the labor force participation rate.
When more individuals enter or re-enter the labor force in search of employment, it can lead to an increase in the number of unemployed individuals.
Even if some of these individuals find employment, the influx of new job seekers can outpace the rate of job creation, resulting in a higher unemployment rate.
Another factor is changes in the composition of jobs and industries.
For example, if there is a shift in the economy towards sectors with higher unemployment rates, such as manufacturing or construction, while other sectors experience job growth, it can lead to a simultaneous increase in both the number of employed persons and the unemployment rate.
Moreover, changes in labor market dynamics, such as mismatched skills or structural changes, can also contribute to this phenomenon.
For instance, if the available jobs require specific skills that do not match the skills of the unemployed individuals, they may remain jobless despite the overall increase in employment.
In summary, the unemployment rate can increase alongside an increase in the number of employed persons due to factors such as changes in labor force participation, shifts in industry composition, and skill mismatches in the labor market.
These dynamics highlight the complexities and nuances of measuring and understanding unemployment in an evolving economy.
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Study the scenario as background to your sales presentation SIWELA FAMILY VINEYARDS Siwela Family Wines 50 Electron Isando Johannesburg Dear Team, Congratulations! It is with great pleasure that we, the Board of Directors of Siwela Family Vineyards, confirm your appointment as the Sales Team for our Siwela range of products, which includes wines, cans and leather bags. According to our discussion, the wine's strategic direction and goal is to attract young adults (ages 21–30) to enjoy our 'easy drinking' wine. As you are probably aware, Siwela Wines produces Chenin Blanc and Siwela Grace. Grace is a high-quality red blend made up of Cabernet Sauvignon, Merlot, Pinotage, and Shiraz. Each wine was fermented and aged separately for 18 months in French oak barrels before being blended prior to bottling. The wine possesses aromas of dark fruits, vanilla, and spices. This wine's elegant, smooth, and bold flavour complements hearty dishes such as lamb shanks, beef stews, and steak. We are considering offering this wine both by the bottle and in a can. We would love to hear your view on this from a sales point of view. In addition to the Grace range we also have Chenin Blanc. Siwela Chenin Blanc is made from 100 % Chenin Blanc grapes from the Stellenbosch region. The wine offers a crisp, vibrant, and well-balanced acidity with hints of yellow apples, passion fruit and floral notes. This unwooded white wine pairs well with seafood, white meat, salads or simply on its own. Refreshing when served chilled. We need to position this wine for the young adult market and are keen to hear more about your sales strategy for this wine. Also, Siwela Vineyards has a keen interest in cans, and we are proud to introduce timeless and classic cans to our market (the proposed market is also the young adult market). The board of directors is keen to hear your sales strategy for our can products. We are aware of the deadlines and therefore recommend that you present a sales strategy for only one of our products either the wines or cans. We would prefer that this presentation take place in person, but due to Covid-regulations, we understand that it will take the form of a PowerPoint presentation, saved as a PDF. Please refer to the rubric below for additional guidance on your sales presentation and the expectations for your performance. We eagerly await your presentation. Regards, Siwela, Board of Directors
Question 1: Customer analysis An analysis of who the target market is and the consumer groups to focus marketing efforts on and create a product positioning that is likely to appeal to the selected target group.
Main answer: The target market for our product is young professionals aged 25-35 who value convenience and sustainability.
Our analysis indicates that the ideal target market for our product is young professionals aged 25-35. This demographic group represents a significant consumer segment with specific preferences and needs. They are digitally connected, highly mobile, and often lead busy lifestyles, seeking convenience in their purchasing decisions. By focusing our marketing efforts on this group, we can tailor our product positioning to align with their values and interests.
Young professionals in this age range are typically tech-savvy and rely heavily on digital platforms for information and shopping. Therefore, we should prioritize online marketing strategies and ensure our product has a strong online presence. This could include targeted social media campaigns, influencer partnerships, and search engine optimization to enhance visibility and attract our target audience.
Moreover, sustainability is a growing concern among young professionals, as they prioritize environmentally friendly products and practices. By highlighting the eco-friendly aspects of our product, such as sustainable sourcing, reduced packaging, or recyclable materials, we can differentiate ourselves in the market and appeal to the values of our target market.
In summary, by focusing our marketing efforts on young professionals aged 25-35 who prioritize convenience and sustainability, we can create a product positioning that resonates with their needs and values. This approach will enable us to effectively target our audience, attract their attention through online channels, and differentiate ourselves through our commitment to sustainability.
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Who are the stakeholders when implementing the BI dashboard?
What is the existing technology and how does the new technology offer improvement?
What resources are needed to adopt the technology?
Please do not copy other post!
Implementing a BI dashboard involves multiple stakeholders, improvement in technology, and the allocation of various resources. It is crucial to involve the right people, assess existing technology, and adequately plan and allocate resources to ensure a successful adoption process.
When implementing a BI (Business Intelligence) dashboard, there are several stakeholders involved. These stakeholders can include:
1. Management: They play a crucial role in decision-making and require access to accurate and real-time data provided by the dashboard. They use this information to analyze performance, identify trends, and make strategic decisions.
2. Business Analysts: These individuals are responsible for gathering requirements and designing the dashboard. They collaborate with various departments to understand their needs and ensure the dashboard meets their expectations.
3. IT Team: They are responsible for implementing and maintaining the technology infrastructure required for the BI dashboard. They ensure the integration of data sources, manage security, and troubleshoot any technical issues that may arise.
4. End Users: These are the individuals who will be using the dashboard to access and analyze data. They can be employees from different departments such as sales, marketing, or finance. The dashboard provides them with insights to monitor their performance, identify areas for improvement, and make data-driven decisions.
Regarding the existing technology and its improvements, it is important to assess the current state before adopting the new technology. The existing technology might include manual data collection and reporting processes or outdated software. The new technology, such as a modern BI dashboard, offers improvements by providing real-time data, automation, interactive visualizations, and user-friendly interfaces. It enhances data analysis capabilities, simplifies reporting, and enables faster decision-making.
To adopt the new technology, several resources are needed. These can include:
1. Software and Hardware: Depending on the chosen BI dashboard solution, licenses, servers, and compatible hardware may be required.
2. Training and Support: Employees need to be trained to effectively use the BI dashboard and take advantage of its features. Adequate support, both during and after implementation, should be provided to address any queries or technical difficulties.
3. Data Integration: The new technology might require integrating data from various sources. This may involve data cleansing, migration, and integration tools.
4. Stakeholder Collaboration: Effective communication and collaboration between stakeholders are essential for successful technology adoption. Regular meetings and feedback sessions should be conducted to ensure everyone is aligned and actively participating.
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Which of the following is not an example of professional behavior
?
What type of forces is acting on an object that prevents the object from moving? (2 points) a Balanced forces b Friction forces c Gravity forces d Unbalanced forces
Answer:
Friction
Explanation:
Friction is a force that resists relative motions of solid surfaces, etc
the elimination of overlapping functions and the meshing of two firms' strong areas or products creates the managerial incentive for mergers known as
The elimination of overlapping functions and the meshing of two firms' strong areas or products creates what is known as synergies.
Synergies are the managerial incentive for mergers because they allow the newly combined firm to achieve greater efficiency and profitability than either company could on their own. By merging with a company that has complementary products or services, the new firm can expand its market share, increase economies of scale, and reduce overall costs. For example, if a company that specializes in producing software for small businesses merges with a company that specializes in hardware for small businesses, they can combine their expertise to offer a more comprehensive solution to their customers. This would result in a more competitive product offering, as well as cost savings from eliminating overlapping functions. Ultimately, the success of a merger depends on the ability of the two firms to effectively integrate their operations and create a culture that promotes collaboration and innovation. By focusing on synergies and finding ways to leverage each other's strengths, firms can create a powerful competitive advantage that benefits both the company and its customers.
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If you are interviewed by more than one person, you should send a thank-you note to _____.
each person in the interview
each person you see in the building
the first person you are introduced to
the person who is obviously leading the interview
Answer:
option A is correct.
i.e.
each person in the interview.
Explanation:
Because thank-you letter provides a simple but effective way to express gratitude to all the individuals you met with.
Review the following scenario, then choose the response that correctly completes the last sentence. Maria bought 100 shares of OAK stock for $20 a share on May 23, 2018. On June 6, 2019, she noticed that the stock had increased in value to $25 a share and decided to sell her shares. Maria's only other income for the year consisted of $61,000 in wages. She will claim the standard deduction when she files her return. Maria's revenue from the sale of stock will increase her taxable income by: $500, and this $500 will be taxed at a capital gain rate of 15%. $500, and this $500 will be taxed at her regular marginal tax rate of 22%. $2,500, and this $2,500 will be taxed at a capital gain rate of 20%. $2,500, and this $2,500 will be taxed at her regular marginal rate of 22%
Answer:
The correct response would be:
$500.00 will be taxed at a capital gain rate of 15%
Explanation:
Review the following scenario, then choose the response that correctly completes the last sentence.
Hope it helps!
Mark receives $400 per week for salary as a sales associate. His quota is $2750 and his commission is 10%. This week, Mark sold $29,000 in merchandise, $1800 of which was returned. calculate his gross pay.
Answer:
$3,120
Explanation:
A sales quota is the minimum volume a salesperson is expected to move to earn commissions.
Mark's quota is $2750
In the week, mark sold $29,000, but $1,800 was returned. The net sales were: $29,000 - $ 1,800 = $27,200
Mark is a 10% commission. The commissions will be 10% of net sales
=10/100 x $27,200
=0.1 x $27,200
=$2,720
gross pay will be weekly earnings plus commissions
=$400 +$2,720
=$3,120
Which type of product advertisement can be used to sell a company’s product when two or more other companies are selling the same product?
Answer:competitive advertising
Explanation:
I’m not for sure but I think that might be the answer
Answer: competitive advertising
Explanation:
if on online course it is what was right
From the consumer’s perspective, the elements of an imc strategy can be viewed as being either.
From the consumer’s perspective, the elements of an IMC strategy can be viewed as being either Passive or interactive .
What are the elements of IMC?
the elements of an imc strategy can be viewed as being either.
6 Elements of Integrated Marketing Communications
Advertising: Advertisement is any paid form of non personal communication about a brand, organization, product, service or idea identified by a sponsor. ...Sales Promotion: ...Personal Selling: ...Direct Marketing: ...Public Relations: ...Internet MarketingWhat are the strategies of IMC?
The usual steps carried out in an IMC strategy include:
Traditional and online earned media.Advertising.Online marketing including email marketing.Content marketing and social media marketing.Thought leadership.Industry/Brand specific strategies.Learn more about IMC Strategies :
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What is the process called that involves the movement of cells into new relative positions in an embryo and results in the establishment of three germ tissue layers
Gastrulation is the process of cell movement and rearrangement in an embryo to establish the three germ tissue layers.
This is a key developmental stage in which a blastula (a hollow ball of cells) transforms into a gastrula, forming three germ tissue layers: the endoderm, mesoderm, and ectoderm. During gastrulation, cells move and migrate into new positions, creating the distinct layers that will ultimately give rise to different tissues and organs in the developing organism. This complex process involves intricate molecular signaling pathways and cellular interactions. gastrulation is a fundamental stage in embryonic development that sets the foundation for the formation of the body plan and is crucial for proper organogenesis.
Gastrulation is a fundamental step in embryogenesis as it establishes the basic body plan and sets the stage for further development and differentiation of tissues and organs.
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About how long is a true elevator pitch?
Answer:
It's about 30 seconds
Hope this helps
Explanation:
1. If average fixed cost is 40 and average variable cost is 80 for a given output, we then know that average total cost is
Answer:
120
Explanation:
Average total cost = average fixed cost + average variable cost
average fixed cost = Total fixed cost / quantity
40 + 80 = 120
Fixed costs are costs that do not vary with output. e,g, rent, mortgage payments
average variable cost = total variable cost / quantity
Variable costs are costs that vary with production. Hourly wage costs and payments for production inputs are examples of variable costs
You run a small business that manufactures park benches. A single high-grade
bench you offer is made from the following direct costs.
1. Lumber - Oak
$7.50 5. Direct labor
$10.60
2. Concrete
$1.56 6. Delivery cost
$ 6.20
3. Metal screws
$ .75 7. Advertising
$ 1.32
4. Wood stain
$.79
What are the total direct costs for manufacturing 940 high-grade benches?
Answer:
$19,928
Explanation:
Direct Costs are costs that vary directly with the number of units produced.
Calculation of Total total direct costs for manufacturing
Consider only direct manufacturing costs per unit
1. Lumber - Oak $7.50
2. Concrete $1.56
3. Metal screws $ 0.75
4. Wood stain $0.79
5. Direct labor $10.60
Total $21.20
Therefore,
Total Cost = Unit Cost x Units manufactured
= $21.20 x 940
= $19,928
Conclusion
The total direct costs for manufacturing 940 high-grade benches is $19,928