Mai-Lin's Martial Arts, Inc, grants a franchise to Naomi to operate a Mai-Lin's school. Mai-Lin's may require Naomi to pay the franchisor a percentage of her?
A) annual sales or volume of business
B) weekly payroll expense.
C) monthly overhead savings.
D) income from unrelated business activities.
A
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Grape Inc. sells high-end wines to liquor, wine, and spirits wholesalers who have built relationships among select restaurants and hotels. Grape Inc. employs a(n) ________ strategy.
A. pull B. exclusive distribution C. intensive distribution D. push E. selective distribution
The process of creating a name, term, design, symbol, or any other feature that identifies a product or service and differentiates it from others is known as:
a. marketing b. positioning c. packaging d. branding
A company's proportion of fixed costs to variable costs is called its ________
A) target profit B) relevant range C) mixed cost D) cost structure
The accounting records of Lowery, Inc., revealed an accounts receivable balance of $195,000 on January 1, 20x6. Forty percent of the company's sales are for cash, and the remaining 60% are on account. Of the credit sales, 30% are collected in the month of sale and 70% are collected in the following month. Total sales in January and February are expected to amount to $500,000 and $530,000, respectively.Assume that in the latter half of 20x6, Lowery hired a new sales manager who aggressively tried to maximize the company's market share. She implemented a compensation system for the sales force that was 100% commission based, with the commission calculated on the basis of gross sales dollars. Sales volume increased dramatically in a very short period of time, and the sales and collection
patterns changed, as follows:Cash sales:20%Credit sales: 80%Collected in the month of sale15%Collected in the month following sale75%Uncollectible10%Required: A. Compute the company's cash inflows for January and February, 20x6.B. Determine the outstanding receivables balance at the end of February.C. Compare the sales and collection patterns before and after the arrival of the new sales manager. Have things improved or deteriorated? Explain.D. On the basis of the information presented, determine what likely caused the improvement or deterioration in collection patterns. What will be an ideal response?