Business, 26.11.2019 00:31 zoieisabella

Last month you assumed the position of manager for a large car dealership. the distinguishing feature of this dealership is its "no hassle" pricing strategy; prices (usually well below the sticker price) are posted on the windows, and your sales staff has a reputation for not negotiating with customers. last year, your company spent $8 million on advertisements to inform customers about its "no hassle" policy, and had overall sales revenue of $40 million. a recent study from an agency on madison avenue indicates that, for each 5 percent increase in tv advertising expenditures, a car dealer can expect to sell 2 percent more cars—but that it would take a 1 percent decrease in price to generate the same 2 percent increase in units sold.

assuming the information from madison avenue is correct, should you increase or decrease your firm’s level of advertising?

1-the firm should not change advertising.

2-the firm should increase advertising.

3-the firm should decrease advertising.

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 18:50

Plastic and steel are substitutes in the production of body panels for certain automobiles. if the price of plastic increases, with other things remaining the same, we would expect: a) the demand curve for plastic to shift to the left. b) the price of steel to fall. c) the demand curve for steel to shift to the left d) nothing to happen to steel because it is only a substitute for plastic. e) the demand curve for steel to shift to the right

Answers: 3

Answer

Business, 22.06.2019 20:10

Mikkelson corporation's stock had a required return of 12.50% last year, when the risk-free rate was 3% and the market risk premium was 4.75%. then an increase in investor risk aversion caused the market risk premium to rise by 2%. the risk-free rate and the firm's beta remain unchanged. what is the company's new required rate of return? (hint: first calculate the beta, then find the required return.) do not round your intermediate calculations.

Answers: 2

Answer

Business, 22.06.2019 22:00

On january 8, the end of the first weekly pay period of the year, regis company's payroll register showed that its employees earned $22,760 of office salaries and $70,840 of sales salaries. withholdings from the employees' salaries include fica social security taxes at the rate of 6.20%, fica medicare taxes at the rate of 1.45%, $13,260 of federal income taxes, $1,450 of medical insurance deductions, and $860 of union dues. no employee earned more than $7,000 in this first pay period. required: 1.1 calculate below the amounts for each of these four taxes of regis company. regis’s merit rating reduces its state unemployment tax rate to 3% of the first $7,000 paid to each employee. the federal unemployment tax rate is 0.60

Answers: 3

Answer

Business, 23.06.2019 00:00

The gorman group is a financial planning services firm owned and operated by nicole gorman. as of october 31, 2016, the end of the fiscal year, the accountant for the gorman group prepared an end-of-period spreadsheet, part of which follows:

Answers: 2

Answer

You know the right answer?

Last month you assumed the position of manager for a large car dealership. the distinguishing featur...

Questions