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2 years ago

________ is not one of the common pricing objectives

Business

1 answer:

guajiro [1.7K]2 years ago

5 0

<u>Return of Saving</u> is not one of the common pricing objectives.

The majority of businesses aim to achieve a reasonable rate of return on investment.

⇒a set proportion of sales,

⇒returns on investment, or

⇒a set quantity of rupees.

The business designs its pricing strategies and policies such that sales income finally produces an average return on total investment.

For instance, a corporation seeks to get a 20% return on its $3 crore total investment. It needs to establish the product's price so that it can make 60 lakh rupees.

To learn more about Pricing Strategies here

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Therrell Corporation has two divisions: Bulb Division and Seed Division. The following report is for the most recent operating p

amm1812

Answer:

a. For Bulb = $183,418.92

b. For Seed = $96,759.49

c. Break even = $336,144.74

Explanation:

Sales = Bulb Division + Seed Division

= $234,000 + $156,000

= $390,000

Variable Expense = Bulb Division + Seed Division

= $60,840 + $32,760

= $93,600

Contribution margin for bulb = Sales - Variable

= $234,000 - $60,840

= $173,160

Contribution margin for Seed division = Sales - Variable

= $156,000 - $32,760

= $123,240

Total = $390,000 - $93,600

= $296,400

Division Income for bulb = contribution margin - Traceable fixed expenses

= $173,160 - $135,730

= $37,430

Division Income for seed division = contribution margin - Traceable fixed expenses

= $123,240 - $76,440

= $46,800

Total of Division income = $296,400 - $212,170

= $84,230

Common Fixed expenses = $25,980 + $17,320

= $43,300

Income = Total of Division income - Common Fixed expenses

= $84,230 - $43,300

= $40,930

Contribution margin ratio for bulb = Contribution ÷ Sales × 100

= $173,160 ÷ $234,000 × 100

= 74.00%

Contribution margin ratio for seed = Contribution ÷ Sales × 100

= $123,240 ÷ $156,000 × 100

= 79%

Total Contribution margin ratio for bulb and seed = Contribution ÷ Sales × 100

= ($173,160 + $123,240) ÷ $390,000 × 100

= $296,400 ÷ $390,000 × 100

= 76%

a and b. Division’s break-even in sales dollars = Fixed costs ÷ Contribution margin ratio

For Bulb = $183,418.92

For Seed = $96,759.49

c. company’s overall break - even in sales dollars

= (212170 + 43300) ÷ 76%

= $336,144.74

5 0

4 years ago

A market is described by the following supply-and-demand curves:QS = 2PQD = 300−PSuppose the government imposes a price ceiling

Zarrin [17]

Answer:

Binding

$100

200

Shortage

Explanation:

A price ceiling is when the government or an agency of the government sets the maximum price for a good.

A price ceiling is binding when the price ceiling is below the equilibrium price.

To find the equilibrium price, equate qs to qd because at equilibrium, quantity supplied is equal to quantity demanded.

2P = 300 - P

3P = 300

P = 100

Equilibrium price is $100.

$100 > $90. Therefore, price ceiling is binding.

To find quantity supplied, plug in the value of P into the equation for quantity supplied

QS = 2(100) = 200

To find quantity demanded, plug in the value of P into the equation for quantity demanded

QD = 300 - 100 = 200

when price is below equilibrium price, quantity demanded increases while the quantity supplied decreases. This leads to a shortage.

I hope my answer helps you

3 0

4 years ago

Marine Midland Bank sent market researchers door-to-door in the neighborhoods surrounding its branch banks. Each researcher want

leva [86]

Answer: Individual interviews

Explanation: An individual interview can be seen as an experimental method of acquiring information from an original source to gather non-numerical information with a small number of respondents to discuss in detail their viewpoints on a specific idea, program or circumstance.

Here, the Marine Midland Bank sent out their researchers to discuss with the head of each household in the community the reason for not checking accounts and credit cards with the bank. It can be carried out in 15-60 minutes.

8 0

3 years ago

When calculating a project’s net present value, which type of cash flows should be considered? Question 2 options: A) Free cash

irina [24]

Answer:

Operating cash flows

Explanation:

Net present value is the present value of after tax cash flows from an investment less the amount invested.

NPV is a capital budgeting method used to determine profitable investments

7 0

3 years ago

Chae Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the firs

nasty-shy [4]

Answer:

If costs and percentage completion of these units in beginning inventory were:

Cost Percent Complete

Materials costs $7,900 60%

Conversion costs $6,900 30%

A total of 8,100 units were started and 7,600 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:

Materials costs $137,900

Conversion costs $323,900

The ending inventory was 80% complete with respect to materials and 75% complete with respect to conversion costs.

Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places.

The cost per equivalent unit for materials for the month in the first processing department is closest to $17.03

Explanation:

Weighted-average method is used to make an inventory valuation, taking average values for both the merchandise in stock and for the costs of merchandise sold.

But in this case, since you have unfinished units, you must take the equivalent to calculate the unit cost.

Materials:

Units completed: 7,600

Units in process: 1,200 * 80% = 960

Equivalent production units: 7,600 +, 960 = 8560

Cost at start: 7,900

Added costs in the period: 137,900

Total cost: 7900 + 137,900 = 145,800

So: 145,800 / 8,560 = 17.03 is the equivalent unit cost per product

4 0

3 years ago