When advertising a test product, should test locations in particular markets be isolated from media with a far reach, such as television?

Answers

Answer 1

Answer:

Answer:

Yes

Explanation:

In a test scenario such as this one, the test locations should be isolated from media with a far reach, such as television. This is mainly due to the fact that if media advertising reaches areas outside the market being tested, it will eventually attract customers from outside the test population which will in term contaminate the data. This can lead to false results, such as a product selling more than it really will.

Related Questions

Donnie Hilfiger has two classes of stock authorized: $1 par preferred and $0.01 par value common. As of the beginning of 2018, 300 shares of preferred stock and 3,100 shares of common stock have been issued. The following transactions affect stockholders' equity during 2018: March 1 Issue 1,100 shares of common stock for $33 per share. May 15 Purchase 400 shares of treasury stock for $26 per share. July 10 Reissue 200 shares of treasury stock purchased on May 15 for $31 per share. October 15 Issue 200 shares of preferred stock for $36 per share. December 1 Declare a cash dividend on both common and preferred stock of $0.80 per share to all stockholders of record on December 15. (Hint: Dividends are not paid on treasury stock.) December 31 Pay the cash dividends declared on December 1. Donnie Hilfiger has the following beginning balances in its stockholders' equity accounts on January 1, 2018: Preferred Stock, $300; Common Stock, $31; Additional Paid-in Capital, $67,000; and Retained Earnings, $26,000. Net income for the year ended December 31, 2018, is $9,900. Taking into consideration the beginning balances on January 1, 2018 and all the transactions during 2018, respond to the following for Donnie Hilfiger: Required: 1. Prepare the stockholders' equity section of the balance sheet as of December 31, 2018. (Amounts to be deducted should be indicated by a minus sign.) 2. Prepare the statement of stockholders' equity for the year ended December 31, 2018. (Amounts to be deducted should be indicated by a minus sign.)
What should an adjustment letter focus on?a. Explaining the resolution to the problem b. Preventing a recurrence of the problem c. Communicating compliance d. Blaming the customer Apologizing
Sako Company’s Audio Division produces a speaker that is used by manufacturers of various audio products. Sales and cost data on the speaker follow: Selling price per unit on the intermediate market $ 47 Variable costs per unit $ 17 Fixed costs per unit (based on capacity) $ 8 Capacity in units 56,000Sako Company has a Hi-Fi Division that could use this speaker in one of its products. The Hi-Fi Division will need 9,000 speakers per year. It has received a quote of $35 per speaker from another manufacturer. Sako Company evaluates division managers on the basis of divisional profits.Assume that the Audio Division is now selling only 49,000 speakers per year to outside customers. From the standpoint of the Audio Division, what is the lowest acceptable transfer price for speakers sold to the Hi-Fi Division?
Johnson Enterprises uses a computer to handle its sales invoices. Lately, business has been so good that it takes an extra 3 hours per night, plus every third Saturday, to keep up with the volume of sales invoices. Management is considering updating its computer with a faster model that would eliminate all of the overtime processing.Current Machine New Machine Original purchase cost $15,230 $25,080 Accumulated depreciation $ 6,800 _ Estimated annual operating costs $24,950 $19,560 Useful life 5 years 5 years If sold now, the current machine would have a salvage value of $8,490. If operated for the remainder of its useful life, the current machine would have zero salvage value. The new machine is expected to have zero salvage value after 5 years.Prepare an incremental analysis. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Astro Mile & Co. owns vast amounts of corporate bonds. Suppose Astro Mile buys $ 1,400,000 of BitterCo bonds at face value on January 2, 2018. The BitterCo bonds pay interest at the annual rate of 8% on June 30 and December 31 and mature on December 1. Astro Mile intends to hold the investment until maturity. Required:a. Journalize any required 2016 entries for the bond investment. b. How much cash interest will Astro Mile receive each year from CoteCorp? c. How much interest revenue will Astro Mile report during 2016 on this bond investment?

A buyer uses a perpetual inventory system, and on December 7, it contacts its supplier to report that some of the merchandise purchased on December 5 was defective. The seller offered to reduce the merchandise price by $400. The buyer agreed to keep the defective merchandise under those terms. Complete the buyer's necessary journal entry by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.

Answers

Answer:

Journal

Account Title

Accounts Payable $400 (Debit)

Purchase return and allowances $400 (Credit)

Account Payable

Dec 7 Cash $400 (Debit)

Purchase Returned

Dec 7 Cash $400 (Credit)

Little Kona is a small coffee company that is considering entering a market dominated by Big Brew. Each company's profit depends on whether Little Kona enters and whether Big Brew sets a high price or a low price: Big Brow High Price Low PriceLittle Kona Enter $2 million, $3 million -$2 million, $1 million Don't Enter $0, $8 million $0,$3 millionBoth Little Kona and Big Brew have a dominant strategy in this game.a. Trueb. False

Answers

Answer:

True

Explanation:

As long as the statement holds that ''each company's profit depends on whether Little Kona enters...'' and the response of the existing monopoly to charge a low price to keep its market share; then both little Kona and Big Brew have a dominant strategy in this game.

They both will become a duopoly which implies that there will be two players in the industry and the price of Big Brow will be greatly influenced by the presence of Little Kona. Big Brow could charge as high as $8 if Little Kona is absent but as low as $2 if Little Kona is enters the industry.

Obviously they both have a dominant strategy, considering further that the entrance of Little Kona changes the industry structure from monopoly to duopoly

Equipment with a book value of $65,300 and an original cost of $133,000 was sold at a loss of $14,000. Paid $89,000 cash for a new truck. Sold land costing $154,000 for $198,000 cash, yielding a gain of $44,000. Long-term investments in stock were sold for $60,800 cash, yielding a gain of $4,150. Use the above information to determine this company’s cash flows from investing activities. (Amounts to be deducted should be indicated with a minus sign.)

Answers

Answer:

The company’s cash flows from investing activities is $221,100

Explanation:

Cash flow from investing activities:

It records that transactions which is related to the purchase and sale of long term assets. The purchase of fixed assets has outflow of cash so, it is deducted whereas the sale of fixed assets has inflow of cash so, it is added.

The cash flow from investing activities is shown below:

Add : Sale of equipment (Book value - loss) = ($65,300 - $14,000) = $51,300

Less : Purchase of new truck = - $89,000

Add: Sale of land = $198,000

Add: Sale of long term investment = $60,800

So, the cash flow from operating activities :

= $51,300 - $89,000 + $198,000 + $60,800

= $221,100

The other cost is not related to the investing activities. Therefore, it is not considered in the computation part.

Hence, the company’s cash flows from investing activities is $221,100

Dwayne invests $4,700 in a savings account at the beginning of each of the next twelve years. if his opportunity cost rate is 7 percent compounded annually, how much will his investment be worth after the last annuity payment is made? use the equation method to calculate the worth of the investment. (round your answer to two decimal places.)

Answers

Answer: Dwayne's investment will be worth $89,961.02 after the last annuity payment is made.

Since Dwayne contributes $4700 at the beginning of each year, we need to calculate the future value of an annuity due.

We use this formula for our calculations:

$\mathbf{FV _(Annuity due) = PMT * \left [ ((1+r)^(n)-1)/(r) \right ]*(1+r)}$

Substituting the values we get,

$\mathbf{FV _(Annuity due) = 4700 * \left [ ((1+0.7)^(12)-1)/(0.07) \right ]*(1+0.07)}$

$\mathbf{FV _(Annuity due) = 4700 * \left [ \frac{2.252191589}-1}{0.07} \right ]*(1.07)}$

$\mathbf{FV _(Annuity due) = 4700 * \left [ \frac{1.252191589}}{0.07} \right ]*(1.07)}$

$\mathbf{FV _(Annuity due) = 4700 * 17.88845127 *(1.07)}$

$\mathbf{FV _(Annuity due) = 89961.02144}$

Pearl Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump-sum price of $784,000. At the time of purchase, Torres’s assets had the following book and appraisal values. Book Values Appraisal Values Land $224,000 $168,000 Buildings 280,000 392,000 Equipment 336,000 336,000

Answers

Answer:

$262500

Explanation:

Please see attachment .

Each of the following are classified as a noncash investing or financing activity except: a. retirement of debt by issuing stock
b. reissuing treasury stock
c. purchase of long-term assets by issuing bonds
d. purchase of noncash assets by issuing equity

Answers

Answer: b. reissuing treasury stock

Explanation:

Investing Activities in the Cashflow Statement refer to transactions that have to do with the buying and selling of Capital Goods such as Fixed Assets. It also refers to investments in other company bonds and stock.

Financing has to do with how the firm finances it's operations. These include long term debt and stock related transactions.

When these transactions are non-cash, it means quite rightly that no cash was exchanged and instead something else for exchanged instead of cash. For example, A non-cash Investing and Financing activity would be the purchase of long-term assets by issuing bonds.

In this question, option B being the reissuance of Treasury Stock is not a non-cash transaction. Treasury Stock is the company's own stock that it required from the market. By reissuing it, they will be doing so with cash involved. That is, people will buy the reissued shares and pay cash for them thus making it a Cash Financing Activity.

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