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satela [25.4K]
2 years ago
14

What is a pricing strategy that establishes a low price in hopes of attracting a great number of customers and discouraging comp

etitors?.
Business
1 answer:
Alex Ar [27]2 years ago
5 0

The pricing strategy that establishes a low price in hopes of attracting a great number of customers and discouraging competitors is penetration pricing.

<h3>What is penetration pricing?</h3>

Penetration pricing is a pricing strategy where the sellers of a new product make the price of the good very low with the hopes that it would attract customers to purchase the product.

Penetration pricing increases the market share of the firm but can lead to the firm earning very low levels of profit.

To learn more about penetration pricing, please check: brainly.com/question/3521758

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Sprockets Corporation is thinking about replacing a piece of manufacturing equipment with a remaining useful life of six years.
joja [24]

Answer:

B) increase its net income by $7,000

Explanation:

If Sprockets replaces the equipment:

  • salvage value of old equipment $29,000
  • new depreciation costs ($125,000 - $25,000 = $100,000)
  • money saved using new equipment $13,000 per year x 6 years = $78,000

total benefit of buying new equipment = $29,000 - $100,000 + $78,000 = $7,000

7 0
3 years ago
To be productive in a nee job, which one of the following suggestions can you safely ignore?
RUDIKE [14]

In team assignments, make sure you speak first and act on your own.

4 0
3 years ago
One possible solution to a diminishing Social Security payroll is to increase the Social Security tax by 1.89%. How would such a
Alecsey [184]

Answer:

Annual tax  increase by $1,020.60.

Explanation:

As the Social Security payroll is increases the Social Security tax, So, it will lead to increase the annual tax and it is computed as:

Increase in Annual Tax = Salary × Increase in Social Security tax

Where,

Salary amounts to $54,000

Increase in Social Security Tax by 1.89%

Putting the values above:

= $54,000 × 1.89%

= $1,020.60

8 0
3 years ago
Sue is a small business owner who often gives gifts to clients. She gives a $40 gift to her client, Mr. Smith, and his wife. Sue
PilotLPTM [1.2K]

Answer:

D) $801

Explanation:

Businesses can only deduct $25 per gift per client, in this case the client's wife is not an actual client, so Sue can only deduct $25 for the gift plus the wrapping expenses. She can also deduct the $400 spent in the calendars and the $370 watch.

Sue's total deductions = $25 + $6 + $400 + $370 = $801

8 0
4 years ago
When Microsoft introduces a new version of its Windows operating system, it typically uses selected magazine, Internet, and dire
nydimaria [60]

Answer:

The combination of Microsoft's advertising outlets is called the media mix.

Explanation:

Media Mix refers to the fusion of all communication channels an organisation elects in trying to satisfy its marketing goals.

Besides the one channels already mentioned in the question, others may include newspapers, cable television, outdoor billboards, online and offline radio, websites, electronic mail, and social media.

Cheers!

8 0
3 years ago
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