Question 19 A local dental practice decides to run a Groupon campaign. The campaign offered $360 worth of dental services (such as teeth whitening) for $145. For the total campaign, 230 coupons were sold. We estimate that 85% of the coupons will be redeemed, that 35% of the coupons will be redeemed by existing customers and that, on average, Groupon customers purchased 1.5 coupons. Let's assume that 26% of new customers come back after the Groupon coupon visit. The dental practice estimates its cost of goods sold to be 60%. Finally, the bill for the average Groupon customer was $390. The dental practice negotiated a 50/50 split with Groupon. Calculate the breakeven revenue for a new Groupon customer. Answer: 695 x (2,634)

Question 19 A local dental practice decides to run a Groupon campaign. The campaign offered $360 worth of dental services (such as teeth whitening) for $145. For the total campaign, 230 coupons were sold. We estimate that 85% of the coupons will be redeemed, that 35% of the coupons will be redeemed by existing customers and that, on average, Groupon customers purchased 1.5 coupons. Let's assume that 26% of new customers come back after the Groupon coupon visit. The dental practice estimates its cost of goods sold to be 60%. Finally, the bill for the average Groupon customer was $390. The dental practice negotiated a 50/50 split with Groupon. Calculate the breakeven revenue for a new Groupon customer. Answer: 695 x (2,634)

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter27: Lean Manufacturing And Activity Analysis

Section: Chapter Questions

Problem 1PA: Lean principles Bright Night, Inc., manufactures light bulbs. Its purchasing policy requires that...

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A local dental practice decides to run a Groupon campaign. The campaign offered $340 worth of dental services (such as teeth whitening) for $145. For the total campaign, 250 coupons were sold. We estimate that 85% of the coupons will be redeemed, that 35% of the coupons will be redeemed by existing customers and that, on average, Groupon customers purchased 1.5 coupons. Let’s assume that 23% of new customers come back after the Groupon coupon visit. The dental practice estimates its cost of goods sold to be 45%. Finally, the bill for the average Groupon customer was $395. The dental practice negotiated a 50/50 split with Groupon. Calculate the Groupon campaign profit/loss (+/-). Please do fast ASAP fast
A local dental practice decides to run a Groupon campaign. The campaign offered $360 worth of dental services (such as teeth whitening) for $155. For the total campaign, 225 coupons were sold. We estimate that 85% of the coupons will be redeemed, that 35% of the coupons will be redeemed by existing customers and that, on average, Groupon customers purchased 1.5 coupons. Let's assume that 30% of new customers come back after the Groupon coupon visit. The dental practice estimates its cost of goods sold to be 60%. Finally, the bill for the average Groupon customer was $390. The dental practice negotiated a 50/50 split with Groupon. Calculate the revenue from the Groupon campaign. The answer is 23,175 please show work
Please do not provide answer in image formate thank you. A local dental practice decides to run a Groupon campaign. The campaign offered $345 worth of dental services (such as teeth whitening) for $145. For the total campaign, 225 coupons were sold. We estimate that 85% of the coupons will be redeemed, that 35% of the coupons will be redeemed by existing customers and that, on average, Groupon customers purchased 1.5 coupons. Let’s assume that 30% of new customers come back after the Groupon coupon visit. The dental practice estimates its cost of goods sold to be 60%. Finally, the bill for the average Groupon customer was $380. The dental practice negotiated a 50/50 split with Groupon. Calculate the breakeven revenue for a new Groupon customer. Answer: 334.60 Incorrect Response (2,071)
Question 17 Home Builder Supply, a retailer in the home improvement industry, currently operates seven retail outlets in Georgia and South Carolina. Management is contemplating building an eighth retail store across town from its most successful retail outlet. The company already owns the land for this store, which currently has an abandoned warehouse located on it. Last month, the marketing department spent $15,000 on market research to determine the extent of customer demand for the new store. Now Home Builder Supply must decide whether to build and open the new store. Which of the following should be included as part of the incremental earnings for the proposed new retail store? a. The original purchase price of the land where the store will be located. b. The cost of demolishing the abandoned warehouse and clearing the lot. c. The loss of sales in the existing retail outlet, if customers who previously drove across town to shop at the existing outlet become customers of…
Refer to the data in Exercise 6–16. Assume that Minneapolis’ sales by major market are: The company would like to initiate an intensive advertising campaign in one of the two market segments during the next month. The campaign would cost $5,000. Marketing studies indicate that such a campaign would increase sales in the Medical market by $40,000 or increase sales in the Dental market by $35,000. Required:1. How much would the company’s profits increase (decrease) if it implemented the advertising campaign in the Medical Market?2. How much would the company’s profits increase (decrease) if it implemented the advertising campaign in the Dental Market?3. In which of the markets would you recommend that the company focus its advertising campaign?4. In Exercise 6–16, Minneapolis shows $48,000 in traceable fixed expenses. What happened to the $48,000 in this exercise?
Corporate Finance A pharmaceutical Startup has an annual cost of capital of 12% (compounded monthly) andgoes through two stages to develop a drug.Stage 1: At End of Month 0 (“EOM0”), the Startup has no employees, and has to decide whether toinvest $10mm and hire 5 employees (who will conduct research). (Employees receive $9,000monthly salary, paid at the end of each month that they work, so they begin receiving salariesstarting at EOM1.If the startup decided to invest at EOM0 and hired employees, then:Stage 2: at EOM24, after knowing whether the Startup is in State A, B or C , the Startup has to decidewhether to invest $35mm at EOM24 and add 40 employees (for a total of 45) OR to shut down. Ifthe Startup decides to shut down, then existing employees will be fired “with 6 months notice” i.e.they will receive 6 more months of salary (i.e. at EOM25, EOM26, … EOM30). Note that: at EOM0the startup believed that at EOM24 there would be:95% prob of State A: the startup thinks that at EOM48…
Assume Costco wants to compete with large manufacturers of golf bags. Costco begins selling a new model of golf bag in its stores for $150. The bag comes with a coupon that customers may mail in to receive a free box of one dozen Kirkland (Costco's brand) golf balls. Each dozen golf balls cost Costco $9.50 to produce and $1.50 to mail to the customer. Kirkland estimates that 40% of the customers who buy a golf bag will mail in the coupon for the free golf balls. During the first quarter of 2020 Costco sold 12,000 golf bags. During that time, 1,000 customers mailed in their coupons and Costco sent them their golf balls. What is the rebate expense and liability, respectively, shown on Costco's financial statements at the end of the first quarter of 2020?
Ethical Behavior Consider the following scenario between Dave, a printer, and Steve, an assistant in the local universitys athletic department. Steve: Dave, our department needs to have 10,000 posters printed for the basketball team for next year. Heres the mock-up, and well need them in a month. How much will you charge? Dave: Well, given the costs I have for ink and paper, 1 can come in at around 5,000. Steve: Great, heres what I want you to do. Print me up an invoice for 7,500. Huts our budget. Then, when they pay you, you give me a check for 2,500. Ill make sure that you get the job. Required: CONCEPTUAL CONNECTION Is Steves proposal ethical? What should Dave do?
Lean principles Bright Night, Inc., manufactures light bulbs. Its purchasing policy requires that the purchasing agents place each quarters purchasing requirements out for bid. This is because the Purchasing Department is evaluated solely by its ability to get the lowest purchase prices. The lowest bidder receives the order for the next quarter (90 working days). To make its bulb products, Bright Night requires 36,000 pounds of glass per quarter. Bright Night received two glass bids for the third quarter, as follows: Central Glass Company: 30.00 per pound of glass. Delivery schedule: 36,000 (400 lbs. x 90 days) pounds at the beginning of July to last for 3 months. Ithaca Glass Company: 30.20 per pound of glass. Delivery schedule: 400 pounds per working day (90 days in the quarter). Bright Night accepted Central Glass Companys bid because it was the low-cost bid. Instructions 1. Comment on Bright Nights purchasing policy. 2. What are the additional (hidden) costs, beyond price, of Central Glass Companys bid? Why werent these costs considered? 3. Considering only inventory financing costs, what is the additional cost per pound of Central Glass Companys bid if the annual cost of money is 8%? (Hint: Determine the average value of glass inventory held for the quarter and multiply by the quarterly interest charge, then divide by the number of pounds.)
Question#2 Bright Night, Inc., manufactures light bulbs. Its purchasing policy requires that the purchasing agents place each quarter’s purchasing requirements out for bid. This is because the Purchasing Department is evaluated solely by its ability to get the lowest purchase prices. The lowest bidder receives the order for the next quarter (90 working days). To make its bulb products, Bright Night requires 55,800 pounds of glass per quarter. Bright Night received two glass bids for the third quarter, as follows: Central Glass Company: $29.00 per pound of glass. Delivery schedule: 55,800 (620 lbs. x 90 days) pounds at the beginning of July to last for 3 months. Ithaca Glass Company: $29.15 per pound of glass. Delivery schedule: 620 pounds per working day (90 days in the quarter). Bright Night accepted Central Glass Company’s bid because it was the low-cost bid. 3. Considering only inventory financing costs, what is the additional cost per pound of Central Glass Company’s bid if the…
17. You run a nail salon. Fixed monthly cost is $5,674.00 for rent and utilities, $6,248.00 is spent in salaries and $1,506.00 in insurance. Also every customer requires approximately $4.00 in supplies. You charge $114.00 on average for each service. You are considering moving the salon to an upscale neighborhood where the rent and utilities will increase to $10,610.00, salaries to $6,327.00 and insurance to $2,438.00 per month. Cost of supplies will increase to $7.00 per service. However you can now charge $172.00 per service. At what point will you be indifferent between your current location and the new location?
BrightLine Medical Products delivers medical supplies to small offices across the metro area. The typical BrightLine customer orders $1,200 worth of supplies in the average month. BrightLine believes that the average customer stays with BrightLine for 2.4 years. What is BrightLine's MONTHLY CHURN RATE for these small office customers? (Report your answer as a percent. Report 25.5%, for example, as "25.5". Rounding: tenth of a percent.) ANSWER IS: (3.5), but HOW is that the answer? Please explain.