Worthington's Farm is an old poultry farm in Mount Prospect, Illinois. For years, it has used wooden coops to haul its poultry to the market
The owner of the farm needs to buy some replacement coops and is considering buying plastic coops that are slightly more expensive than wooden ones but much easier to clean after use. Consequently, the owner of Worthington's Farm ordered 100 customized coops from its regular supplier. This exemplifies ________.
A) a modified rebuy
B) a new task
C) a straight rebuy
D) derived demand
E) composite demand
A
You might also like to view...
A U.S. Treasury bond will pay a lump sum of $1,000 exactly 3 years from today. The nominal interest rate is 6%, semiannual compounding. Which of the following statements is CORRECT?
A. The PV of the $1,000 lump sum has a smaller present value than the PV of a 3-year, $333.33 ordinary annuity. B. The periodic interest rate is greater than 3%. C. The periodic rate is less than 3%. D. The present value would be greater if the lump sum were discounted back for more periods. E. The present value of the $1,000 would be larger if interest were compounded monthly rather than semiannually.
Exhibit 20-5 The Baltimore, Inc entered into a five-year lease with the Waugh Chapel Company on January 1, 2016. Baltimore, the lessor, will require that five equal annual payments of $25,000 be made at the beginning of each year. The first payment will be made on January 1, 2016. The lease contains a bargain purchase option price of $12,000, which the lessee may exercise on December 31, 2020
The lessee pays all executory costs. The cost of the leased property and its normal selling price are $95,000 and $118,236, respectively. Collectibility of the future lease payments is reasonably assured, and the lessor does not expect to incur any future costs related to the lease. Present value factors for a 7% Present value of $1 for n = 1 0.934579 Present value of $1 for n = 5 0.712986 Present value of an ordinary annuity for n = 5 4.100197 Present value of an annuity due for n = 5 4.387211 ? Refer to Exhibit 20-5. If Baltimore requires a 7% annual return, how much gross profit will Baltimore record at the inception of the lease? A) $7,505 B) $14,680 C) $16,061 D) $23,236
A machine that cost $13,000 and on which $9,300 of accumulated depreciation had been recorded was disposed of for $3,700. The entry to record the disposal of the machine is:
A) Cash 9,300 Machinery 9,300 B) Machinery 13,000 Depreciation Expense-Machinery 13,000 C) Cash 3,700 Accumulated Depreciation-Machinery 9,300Machinery 13,000 D) Accumulated Depreciation-Machinery 9,300 Machinery 9,300
Which of the following is an accurate statement regarding the sales presentation?
A) It is best to communicate all you know about the product. B) The location of the sales presentation is an irrelevant factor. C) Each product feature is of equal importance to every customer. D) Appealing to the prospect's senses makes the sales presentation more powerful. E) A sales presentation that does not use technology is not likely to be successful.