Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. Identify the two issues Keon is facing here. 2. Assess the situation of each of the issues seperately 3. Analyse the two issues identified

1. Identify the two issues Keon is facing here.
2. Assess the situation of each of the issues seperately
3. Analyse the two issues identified
4. make recomendations for each of them
image text in transcribed
Keon has asked Meena about pricing and costing of the limo services and has made his own plans, should he acquire the business. In terms of budgeting resources, Keon is planning to use two limos for regular customers and the other two for non-regulars. Here is a detailed breakdown of non-regular customer averages for a single limo (weeknights are Monday through Thursday): Keon can currently borrow up to $150,000 at a 5.50% rate. In addition to the $70,000 in a trading account, Keon has a $10,000 balance in his checking account. He feels that this money could comfortably last him three months as his living expenses are quite low. Since Meena hasn't advertised very heavily (she currently pays $300 a month for advertising on Google and $150 a month for a small spot in the local paper), Keon is thinking of adding some more aggressive marketing. He believes that paying for a trio of large billboards around the city could boost annual sales by 25% (with proportional increases in vehicle costs). Each billboard would have an initial cost of $1,000, followed by $500 monthly

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Energy Audit And Management Concept Methodologies Procedures And Case Studies

Authors: L. Ashok Kumar, Gokul Ganesan

1st Edition

978-1032067797

More Books

Students also viewed these Accounting questions

Question

1. In what ways has flexible working revolutionised employment?

Answered: 1 week ago