Answer:
Segment margin Domestic = $186,200
Explanation:
Giving the following information:
Sales revenues= $620,000
Variable expenses= $359,700
Traceable fixed expenses= $74,100
To calculate the segment margin for the Domestic division, we need to use the following formula:
Segment margin Domestic = segment contribution margin - traceable fixed expense
Segment margin Domestic = (620,000 - 359,700) - 74,100
Segment margin Domestic = $186,200
Furniture purchased from Kailash for Rs. 6,000.
Answer:
What's the question or is this a statement?
Explanation:
?
Bronco High School issues $10 million in bonds on January 1, 2021 that pay interest semi-annually on June 30 and December 31. A portion of the bond amortization schedule appears below: Date Cash Paid Interest Expense Increase in Carrying Value Carrying Value 01/01/2021 $ 8,800,000 06/30/2021 $ 400,000 $ 440,000 $ 40,000 8,840,000 12/31/2021 400,000 442,000 42,000 8,882,000 What is the face amount of the bonds
Answer:
the face amount of the bonds is $10 million
Explanation:
the journal entry to record the issuance of the bonds is:
January 1, 2021, bonds issued at a discount
Dr Cash 8,800,000
Dr Discount on bonds payable 1,200,000
Cr Bonds payable 10,000,000
the face value of the bonds = total amount of the issue, while the carrying value of the bonds = face value - discount = $10,000,000 - $1,200,000 = $8,800,000
The journal entry to record the use of utilities in a factory could include which two of the following: (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)
Debit to Factory Overhead
Credit to Factory Overhead
Debit to Factory Utilities Payable
Credit to Factory Utilities Payable
Credit to Raw Materials
Credit to Factory Wages Payable
Answer:
Debit to Factory Overhead
Credit to Factory Utilities Payable
Explanation:
The journal entry to record the use of utilities in a factory is as follows:
Factory overhead Dr XXXXX
To Factory utilities payable XXXXX
(Being the utilities usage is recorded)
Here the factory overhead is debited as it increased the expenses and credited the factory utilities payable as it also increased the liabilities
So, the above represent the answer
koshys coffe in bagalore is quaint establishment nesteld near mg road in the central business distirct it serves coffee and fruit cake to a clientel that has been enjoying these products for over fifty years the demand for coffee beans is 6600 cases per year each case has 24 ten pound bags it would be distraus fro them to run out of coffe so tye keep a safety stock of 30 cases the cases cost 4800 and it costs 5 per case to order coffee. as coffee is perishable prudct the holding ocst is fairly hight 40/case/year the lead time to recive an order is seven days koshys is open 300 days a year.
What is their annual ordering cost if they order at their EOQ level?
Answer:
812.41
Explanation:
Demand D = 6600 cases
Ordering cost S = 5
Holding cost H= $40
Economic order quantity = EOQ
Q = [tex]\sqrt{2DS/H}[/tex]
Q = [tex]\sqrt{(2*6600*5)/40}[/tex]
Q = [tex]\sqrt{1650}[/tex]
Q = 40.620192
Q = 40.62 cases
Annual ordering cost = D * S / EDQ
Annual ordering cost = 6600 * 5 / 40.62
Annual ordering cost = 33000 / 40.62
Annual ordering cost = 812.4076809453471
Annual ordering cost = $812.41
So, their annual ordering cost if they order at their EOQ level is 812.41
Mentor Corp. has provided the following information for the current year: Units produced 3,500units Sale price$200per unit Direct materials$70per unit Direct labor$55per unit Variable manufacturing overhead$20per unit Fixed manufacturing overhead$350,000per year Variable selling and administrative costs$30per unit Fixed selling and administrative costs$150,000per year Calculate the unit product cost using variable costing.
Answer:
the unit product cost using variable costing is $145 per unit
Explanation:
The computation of the unit product cost using variable costing is as follows:
= Direct materials per unit + direct labor per unit + variable overhead per unit
= $70 + $55 + $20
= $145 per unit
Hence the unit product cost using variable costing is $145 per unit
We simply applied the above formula so that the correct value could come
And, the same is to be considered
g The following information pertains to Lee Corp.'s defined benefit pension plan for year 2: Service cost $160,000 Actual and expected gain on plan assets 35,000 Unexpected loss on plan assets related to a year 1 disposal of a subsidiary 40,000 Amortization of unrecognized prior service cost 5,000 Annual interest on pension obligation 50,000 What amount should Lee report as pension cost in its year 2 income statement
Answer:
$180,000
Explanation:
Calculation for the amount that Lee should report as pension cost in its year 2 income statement
Using this formula
Pension cost =Service cost-Actual and expected return on plan assets+Prior service cost amortization+Interest cost
Let plug in the formula
Pension cost =$160,000 – $35,000 + $5,000 + $50,000
Pension cost =$180,000
Therefore the amount that Lee should report as pension cost in its year 2 income statement will be $180,000
ABC Inc.'s capital structure is 40% debt, 15% preferred, and 45% common equity, and its tax rate is 40%. For financing, (a) ABC sold a non-callable bond several years ago that now has 15 years to maturity with 8% annual coupon, paid semiannually, at a price of $1,065, and a par value of $1,000. (b) ABC sold a perpetual preferred stock for $95.50 per share, with a $7.50 annual dividend and a flotation cost of 3.00% of the price. (c) ABC also has beta
Answer:
The answer is B (im pretty sure)
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Explanation:
Mazie Supply Co. uses the percent of accounts receivable method. On December 31, it has outstanding accounts receivable of $140,000, and it estimates that 6% will be uncollectible. Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has: (a) a $2,380 credit balance before the adjustment. (b) a $700 debit balance before the adjustment.
Answer:
estimated bad debt expense = $140,000 x 6% = $8,400
a) balance of allowance for doubtful accounts = $2,380
$8,400 - $2,380 = $6,020
Dr Bad debt expense 6,020
Cr Allowance for doubtful accounts 6,020
b) balance of allowance for doubtful accounts = ($700)
$8,400 + $700 = $7,100
Dr Bad debt expense 7,100
Cr Allowance for doubtful accounts 7,100
Allowance for doubtful accounts is a contra asset account with a normal credit balance.
Requirements for legal capacity for an individual are that a person must be at least sixteen and intelligent. true false
Answer:
False
Explanation:
You have to be 18
Olive, the owner of Olive’s Orchard, contracts to sell its harvest to Pure Foods, Inc. Later Olive refuses to perform. Pure Foods files a suit to enforce the contract. Olive and Pure Foods are in a state that does not recognize the doctrine of unconscionability. To defend successfully against enforcement of the contract on similar grounds, Olive might rely on traditional notions of a. materiality. b. mistake. c. value. d. fraud.
Answer:
D)fraud
Explanation:
From the question, we are informed about Olive, the owner of Olive’s Orchard, contracts to sell its harvest to Pure Foods, Inc. Later Olive refuses to perform. Pure Foods files a suit to enforce the contract. Olive and Pure Foods are in a state that does not recognize the doctrine of unconscionability. To defend successfully against enforcement of the contract on similar grounds,. In this case, Olive might rely on traditional notions of a fraud. Fraud can be regarded as an act of deception which is intentional to deprive those that fall for it their legal right. It is activities that gives the perpetrator an unlawful gain or to deny a victim their right. It is carried out by people to get financial or personal gain in an unlawful manner. Some types of fraud that are common are are tax fraud, bankruptcy fraud. as well as credit card fraud,
what are some requirements for Postal Service Mail Carriers?( Check all that apply. )
A.) a valid driver license
B.) a civil service exam
C.) a physical exam
D.) a passport
E.) a vocabulary exam
F.) an experience living in at least two states
G.) an age of at least eighteen years
Answer:
a.b,c,gExplanation:
The requirements to work in United States Postal Service department is: a valid driver license, a civil service exam, a physical exam, and an age of at least eighteen years. Thus, the correct options are a, b, c, and f.
What is United States Postal Service?The United States Postal Service (USPS), often known as the Post Office, U.S. Mail, or Postal Service, is a separate executive branch agency that is in charge of delivering postal service across the United States, including its associated states and insular territories.
The person who is interested to work in United States Postal Service department must have a valid driver's license, cleared the civil service exam and a physical exam, and is at least eighteen years of age.
Therefore, the options that apply to the requirements for Postal Service Mail Carriers are A, B, C, and G.
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Jaguar Plastics Company has been operating for three years. At December 31 of last year, the accounting records reflected the following: Cash 23000 Accounts payable 21000
Investments (short-term) 34000 Notes receivable (long-term) 36000
Accounts receivable 4200 Accrued liabilities payable 5300
Inventory 26000 Additional paid-in capital 90900
Equipment 49000 Retained earnings 33900
Factory building 101000 Notes payable (current) 48,000
Intangibles 4100
During the current year, the company had the following summarized activities:
a. Purchased short-term investments for $8,400 cash.
b. Lent $5,600 to a supplier who signed a two-year note.
c. Purchased equipment that cost $23,000; paid $5,600 cash and signed a one-year note for the balance.
d. Hired a new president at the end of the year. The contract was for $87,000 per year plus options to purchase company stock at a set price based on company performance. The new president begins her position on January 1 of next year.
e. Issued an additional 1,400 shares of $0.50 par value common stock for $11,000 cash.
f. Borrowed $16,000 cash from a local bank, payable in three months.
g. Purchased a patent (an intangible asset) for $1,900 cash.
h. Built an addition to the factory for $30,000; paid $8,100 in cash and signed a three-year note for the balance.
i. Returned defective equipment to the manufacturer, receiving a cash refund of $3,100.
Required:
Post the current year transactions to T-accounts for each of the accounts on the balance sheet.
Answer:
Jaguar Plastics Company
Cash Account
Account Titles Debit Credit
Balance 23000
Short-term investments $8,400
Notes Receivable 5,600
Equipment 5,600
Common stock 700
Additional capital 10300
Notes payable 16000
Intangible (Patent) 1900
Equipment (refund) 3100
Investments (short-term)
Account Titles Debit Credit
Balance 34,000
Cash 8,400
Accounts Receivable
Account Titles Debit Credit
Balance 4200
Inventory
Account Titles Debit Credit
Balance 26000
Equipment
Account Titles Debit Credit
Balance 49000
Note payable 17400
Cash 5600
Cash (refund) 3100
Factory building
Account Titles Debit Credit
Balance 101000
Cash 8100
Note Payable (long-term) 21900
Notes receivable (long-term)
Account Titles Debit Credit
Balance 36,000
Cash 5,600
Intangibles
Account Titles Debit Credit
Balance 4100
Cash 1900
Notes payable (current)
Account Titles Debit Credit
Balance 48,000
Equipment 17400
Cash 16000
Common Stock (Calculated)
Account Titles Debit Credit
Balance 78200
Cash 700
Additional paid-in capital
Account Titles Debit Credit
Balance 90900
Cash 10300
Notes Payable (Long-term)
Account Titles Debit Credit
Factory building 21900
Explanation:
a) Data and Calculations:
Cash 23000 Accounts payable 21000
Investments (short-term) 34000 Accrued liabilities payable 5300
Accounts receivable 4200 Notes payable (current) 48,000
Inventory 26000 Additional paid-in capital 90900
Equipment 49000 Retained earnings 33900
Factory building 101000 Common Stock (Calculated) 78200
Notes receivable
(long-term) 36000
Intangibles 4100
A three-month forward contract on a stock index is trading at $1000. The current index level is $985.1. Assuming a continuously compounded interest rate of 5%. Additionally, assume that the stock index does not pay any dividends. Which one of the following statements reflects a potential arbitrage strategy:
I. Long the forward contract, short the stock index, and lend at the risk-free rate
II. Short the stock index and lend at the risk-free rate, while entering in a forward contract agree- ment to purchase the asset in three months for $1000.
(a) I alone
(b) II alone
(c) I and II
(d) None of the above
Answer:
d
Explanation:
ddddddddddddddddddddddd
Dan Pink argues that for 21st century tasks in creative businesses the mechanistic, reward-and-punishment approach will not work best because creativity is often constrained when immediate monetary rewards are offered in return for success. a. Trueb. False
Answer: True
Explanation:
This statement is true. Dan Pink argued that when it came to creative businesses, it would be best to use intrinsic as opposed to extrinsic rewards to encourage employees as extrinsic rewards such as money could constrain creativity.
Intrinsic rewards are those that are psychologically rewarding such as giving employees tasks that are fulfilling and make them feel part of the team as well as positive feedback from employers.
Gallonte Inc. began operations in April of this year. It makes all sales on account, subject to the following collection pattern: 30% are collected in the month of sale; 60% are collected in the first month after sale; and 10% are collected in the second month after sale. If sales for April, May, and June were $60,000, $80,000, and $70,000, respectively, what were the firm's budgeted collections for May
Answer:
Total cash collection May= $60,000
Explanation:
Giving the following information:
Cash collection:
30% are collected in the month of sale
60% are collected in the first month after sale
10% are collected in the second month after sale.
Sales:
April= $60,000
May= $80,000
We need to calculate the cash collection for May:
Cash collection:
Sales in cash May= (80,000*0.3)= 24,000
Sales in account from April= (60,000*0.6)= 36,000
Total cash collection May= $60,000
On January 1, 2019, Sandhill Corporation acquired machinery at a cost of $1290000. Sandhill adopted the double-declining balance method of depreciation for this machinery and had been recording depreciation over an estimated useful life of ten years, with no residual value. At the beginning of 2022, a decision was made to change to the straight-line method of depreciation for the machinery. The depreciation expense for 2022 would be
Answer:
$94,354.29
Explanation:
Depreciation rate = 100/10*2 = 20%
2019 Depreciation = 1290000 * 20% = $258000
2020 Depreciation = 1290000 * 80% * 20% = $206400
2021 Depreciation = 1290000 * 80% * 80% * 20% = $165120
Accumulated depreciation (2019 to 2021) = $258000 + $206400 + $165120 = $629,520
Depreciation expense for 2022 = (1290000 - 629,520) / 7
Depreciation expense for 2022 = 660480 / 7
Depreciation expense for 2022 = $94,354.29
8-4 Valuing Commercial Real Estate BuildingOne Properties is a limited partnership formed with the express purpose of investing in commercial real estate. The firm is currently considering the acquisition of an office building that we refer to simply as building B. Building B is very similar to building A, which recently sold for $36,960,000. BuildingOne has gathered general information about the two buildings, including valuation information for building A:
Answer:
the question is incomplete:
Buildings A and B are similar in size (80,000 and 90,000 square feet, respectively). However, the two buildings differ both in maintenance costs ($23 and $30 per square foot) and rental rates ($100 versus $120 per square foot). At this point, we do not know why these differences exist. Nonetheless, the differences are real and should somehow be accounted for in the analysis of the value of building B using data based on the sale of building A. Building A sold for $462 per square foot, or $36,960,000. This reflects a sales multiple of six times the building’s net operating income (NOI) of $6,160,000 per year and a capitalization rate of 16.67%.
NOI of building A = ($100 x 80,000 ft²) - ($23 x 80,000 ft²) = $6,160,000
NOI of building B = ($120 x 90,000 ft²) - ($30 x 90,000 ft²) = $8,100,000
building B's market value = NOI / capitalization rate = $8,100,000 / 0.1667 = $48,600,000
property value = $48,600,000 / 90,000 ft² = $540 per ft²
If an economist is a proponent of free trade amongst nations, what would be concerning about the proliferation of regional trade agreements?
A. The nations involved with regional trade agreements make the economies more independent from each other.
B. Regional trade agreements may restrict trade from outside of the regions in the agreement.
C. Terms of regional trade agreements often conflict with agreements of the Anti- Tariff Act.
Answer: B. Regional trade agreements may restrict trade from outside of the regions in the agreement.
Explanation:
Regional trade agreement is a form of trade agreement usually between two or more countries in a particular region which will allow for easy movement of goods between the borders of that particular region. Examples are North American Free Trade Agreement, European Union etc.
If an economist is a proponent of free trade amongst nations, the economist will be worried that the proliferation of regional trade agreements may restrict trade from outside of the regions in the agreement. This is because there'll only be free trade for the countries that are in that particular region.
Identify the impact on either the supply or demand of loanable funds following the events listed below. Economic conditions deteriorate, prompting households to save a larger portion of their income. will In an effort to balance the budget, the government increases taxes paid by businesses. will Economic conditions improve, increasing the demand for goods and services. will Innovations in robotics technology vastly improves productivity within manufacturing firms. will
Answer:
1. Economic conditions deteriorate, prompting households to save a larger portion of their income. SUPPLY will INCREASE.
Loanable funds are created by financial institutions from the savings that households deposit in them. If households start saving more, the amount of loanable funds created will be more which means an increase in supply.
2. In an effort to balance the budget, the government increases taxes paid by businesses. DEMAND will DECREASE.
Businesses comprise a large portion of the market demanding loanable funds. If their taxes increase, they will reduce the loanable funds they get which they use for investment because they will not see the need of investing more if their profitability will suffer from taxation.
3. Economic conditions improve, increasing the demand for goods and services. DEMAND will INCREASE.
With goods and services in high demand, businesses will seek more loanable funds to expand their capacity and produce more goods and services.
4. Innovations in robotics technology vastly improves productivity within manufacturing firms. DEMAND will INCREASE.
Demand for loanable funds will increase as businesses invest in the innovations to take advantage of the improved productivity offered by them.
The impact of the demand and supply in the given situations would be as follows:
1). Increase in Supply
2). Decrease in Demand
3). Increase in Demand
4). Increase in Demand
Demand and Supply
Demand and Supply are affected by various factors including price, income, and many others.
The fall in the economic conditions and people promoting savings would cause an increase in supply because the demand would decrease due to emphasis on savings.
The increased taxation would cause the purchasing power of the people to fall and thus, the demand would decrease.
The improvement in economic conditions implies more purchasing powers and hence, the demand will increase.
The enhanced productivity increases employment and hence, more will be demanded.
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Corporation produces shiny discs. A special order has been placed by the customer for 2,200 units of the shiny disc for $27 a unit. While the disc would be modified slightly for the special order, the normal unit product cost for each disc is $20.50:
Direct materials $ 5.80
Direct labor 4.00
Variable manufacturing overhead 2.90
Fixed manufacturing overhead 7.80
Unit product cost $ 20.50
Assume that direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs.The customer would like modifications made to each disc that would increase the variable costs by $1.90 per unit and that would require an investment of $16,000 in special equipment that would have no salvage value.This special order would have no effect on Rick Corp.'s other sales. The company has enough spare capacity for producing the special order.What would be the annual financial advantage (disadvantage) for Rick as a result of accepting this special order?a. $40,760b. ($15,700)c. ($2,000)d. $16,200
Answer:
Effect on income= $11,280 increase
Explanation:
Giving the following information:
A special order has been placed by the customer for 2,200 units of the shiny disc for $27 a unit.
Because it is a special order, we will take into account only the differential fixed costs.
First, we need to calculate the total unitary cost and differential fixed costs:
Total unitary variable cost= 5.80 + 4 + 2.9 + 1.9
Total unitary variable cost= $14.6
Total fixed cost= $16,000
Now, we can determine the effect on income:
Effect on income= 2,200*(27 - 14.6) - 16,000
Effect on income= $11,280 increase
After the introductory period, all consumers who have this Platinum Card will...
Answer:
Qualify for an A.P.R. based on their creditworthiness
Explanation:
After the introductory period is over you will be set a new APR
Financial services Consumers, who have Platinum Card after some introductory period, qualify for APR (Annual Percentage Rates).
The qualification for APR depends on the customer's creditworthiness. This is the assessed financial ability of a customer to pay on her credit terms. If the credit performance of the customer is adjudged worthy, the cardholder may be given a Titanium card with a higher credit limit.When a credit card account is opened for a customer, the customer is charged with the introductory rate. Then, after the introductory period, the customers are charged with the APR, which is usually less than the introductory rate.Credit card account holders may also attract penalty APR when the penalty terms are triggered. Some credit card accounts attract variable APR, which means that the rate changes depending on stated circumstances.Thus, the rate charged at the introductory period of a Platinum Card is higher than the APR.
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During August, Boxer Company sells $360,000 in merchandise that has a one-year warranty. Experience shows that warranty expenses average about 4% of the selling price. The warranty liability account has a credit balance of $12,400 before adjustment. Customers returned merchandise for warranty repairs during the month that used $9,000 in parts for repairs. The entry to record the estimated warranty expense for the month is:
Answer:
Debit Estimated Warranty Liability $12,400
Credit Warranty Expense $12,400
Explanation:
Warranty Expense = 0.04 * Total Sales
Warranty Expense = 0.04 * $360,000
Warranty Expense = $14,400
Warranty Liability Account = Warranty Expense + Opening balance of the Warranty liability Account
Warranty Liability Account = $14,400 + $12,400
Warranty Liability Account = $26,800
The business would incur actual warranty expense of $12,400.
Debit Estimated Warranty Liability $12,400
Credit Warranty Expense $12,400
. In an income statement segmented by product line, the salary of the corporation chief executive officer (CEO) should be: a. allocated to the product lines on the basis of sales dollars. b. allocated to the product lines on the basis of segment margin. c. classified as a traceable fixed expense and allocated to the product lines. d. classified as a common fixed expense and not allocated to the product lines.
Answer:
d. classified as a common fixed expense and not allocated to the product lines.
Explanation:
In the case when the income statement is segmnented by the product line so the salary of the chief executive officer (CEO) would be categorized as a common fixed expenses as it has fixed in a nature so it would not be allocated to the product lines
Therefore as per the given situation, the option D is correct
Hence, the same is to be considered
A payroll tax is collected by which of the following methods?
A.
It is automatically deducted as a percentage of the paycheck.
B.
The paycheck is brought to the bank for the tax to be deducted.
C.
The payroll tax is paid with the income tax on April 15 of each year.
D.
The government deducts a percentage of your paycheck directly from your personal bank account.
Please select the best answer from the choices provided
A
B
C
D
Answer:
A.
It is automatically deducted as a percentage of the paycheck.
Explanation:
just did it on the exam
What is one major drawback of globalization?
Answer:
The oppression of weaker and poorer economies by those that are more robust; “the rich get richer, the poor get poorer”
Explanation:
Assume that Clark Electronics has a monopoly in the production and sale of a new device for detecting and destroying a computer virus. Clark Electronics currently incurs short-run losses, but it continues to operate.
a. What must be true for Clark to continue to operate in the short run?
b. Draw a correctly labeled graph, and show each of the following for Clark.
i. The profit-maximizing price and output
ii. Area of loss
C. Assume Clark is maximizing profit. What will happen to its total revenue if Clark raises its price? Explain.
d. If demand for the new device increases, explain what will happen to each of the following in the short run.
i. Profit-maximizing output
ii. Total cost
Solution :
c. MC=MR is the profit maximizing equilibrium point. The price rise beyond that is likely to raise the total revenue. But the total cost might increase equally or more then that to nullify or decrease the profit.
d. (i). The demand increase implies that the AR (demand) curve shifts rightwards. This will increase the equilibrium price.
(ii). Change in demand does not affect the total cost.
a. Monopoly might continue to produce in short earn even if its AR < AC. It continues to do so until shut down point. It refers that production continued until average revenue (AR) is greater than equal to the average variable cost (AVC). The monopoly is a market with a single seller.
This market's average revenue (AR) demand curve is above its marginal curve . The curves are downward sloping, illustrating price demand inverse relationship.
Equilibrium quantity : when the marginal revenue = marginal cost
Equilibrium price : equilibrium quantity corresponding price at AR (demand ) curve.
A notary signing agent has been providing signing services with no incidents for over 10 years without undergone a background screning . Therefore. he or she
Answer:
Explanation:
Notary
This company purchased a truck at a cost of $12,000. The truck has an estimated residual value of $2,000 and an estimated life of 5 years, or 100,000 hours of operation. The truck was purchased on January 1, 2012, and was used 27,000 hours in 2012 and 26,000 hours in 2013. Refer to Fabian Woodworks. If the company uses the units-of-production method, what is the depreciation rate per hour for the equipment
Answer:
The correct answer is $0.10 per hour
Explanation:
According to the scenario, the calculation of the depreciation rate per hour using the units-of-production method is as follows
= (Purchase cost - estimated residual value) ÷ (estimated hours of operation)
= ($12,000 - $2,000) ÷ (100,000 hours)
= ($10,000) ÷ (100,000 hours)
= $0.10
hence, the depreciation rate per hour for the equipment is $0.10
Select the correct answer.
Information security professionals hack into computer systems.
A True
B. False
Answer:
true
Explanation:
Answer:
false
Explanation:
Pepsico experienced great success in Latin America with its numeromania contest which lured consumers promise of big cash prize. They used the same contest in Poland successful. This shows that ?
Answer:
E.leverage experience gained in one country can be used in another country
Multiple- choices
A. Numeromania helped in developing a taste for Pepsi in both countries.
B. Numeromania can be used in cash starved countries.
C. Numeromania can be used in different languages.
D. economically squeezed consumers love Pepsi.
E.leverage experience gained in one country can be used in another country
Explanation:
Pepsico is a Multinational operating in different countries. It is common for a multinational to use different marketing strategies s in different countries based on market research findings. It is also reasonable to implement a strategy that has been successful in one country in other countries.
In this scenario, Pepsico took advantage of the contest strategy in Latin America to implement it in Poland. The company must have observed some similarities between the customers in the two countries.