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2 years ago

Price is important to managers

1 answer:

7 0

Price is important to managers because it has a substantial effect on a company's profitability and sustainability.

<h3>Why is pricing important?</h3>

The importance of pricing is traced to the fact that defines the value or worth of a product and the number of customers that demand the product.

For the consumer of products, price is a key factor that determines purchase decisions.

Thus, price is important to managers because it has a substantial effect on a company's profitability and sustainability.

Learn more about pricing at brainly.com/question/15569228

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<h3>Question Completion:</h3>

Why is price important to managers?

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Addison company will issue a zero-coupon bond this coming month. The projected yield for the bond is 7%. If the par value of the

horsena [70]

Answer:

If the bond is zero coupon then there only be one lump sum payment at the end of the bond period and we will have to discount is back using the yield of the bond to find its present value or price. Because the convention is semi annual we will divide interest by 2 to find the semi annual interest rate and to number of periods we will multiply years by 2 because of semi annual convention.

Yield= 7/2= 3.5%

a. the maturity is 20 years

We have to discount 1,000 20 years back which means 40 periods back as 20*2= 40

1,000/1.035^40=252.5725

The present value of a zero coupon $1000 bond will be $252.5725 when the yield is 7% and maturity is 20 years.

b. the maturity is 30 years

We have to discount 1,000 30 years back which means 60 periods back as 30*2= 60

1000/1.035^60=126.93

The present value of a zero coupon $1000 bond will be 126.93 when the yield is 7% and maturity is 30 years.

c. the maturity is 50 years

We have to discount 1,000 50 years back which means 100 periods back as 50*2= 100

1000/1.035^100= 32.06

The present value of a zero coupon $1000 bond will be $32.06 when the yield is 7% and maturity is 50 years.

d. the maturity is 100 years

We have to discount 1,000 100 years back which means 200 periods back as 50*2= 200

1000/1.035^200= 1.02

The present value of a zero coupon $1000 bond will be $1.02 when the yield is 7% and maturity is 100 years.

Explanation:

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2 years ago

A July sales forecast projects that 5,000 units are going to be sold at a price of $12.50 per unit. The management forecasts 2%

Pavlova-9 [17]

Answer:

$P_i = 5000 units *12.5\frac{dollars}{unit} = 62500 dollars$

And for the new case we know that the sales increase by a factor of 2%, so then we can find the new number of sales like this:

$1.02*5000 units= 5100 units$

And the Total August sales would be given by:

$P_f = 5100 units *12.5 \frac{dollars}{unit}= 63750 dollars$

And the correct answer for this case would be:

$63,750

Explanation:

For this case the original number of sales for this case is 5000 units and the unitary price is given by $12.5 \frac{dollars}{unit}$

And the total sales for the original case would be given by:

$P_i = 5000 units *12.5\frac{dollars}{unit} = 62500 dollars$

And for the new case we know that the sales increase by a factor of 2%, so then we can find the new number of sales like this:

$1.02*5000 units= 5100 units$

And the Total August sales would be given by:

$P_f = 5100 units *12.5 \frac{dollars}{unit}= 63750 dollars$

And the correct answer for this case would be:

$63,750

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Answer choreographing a dance step by step

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I believe your answer would be D.) A female accountant with a Master's degree in Business Administration.

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Each adjusted entry transaction needs to be posted to A. individual journal entries B. individual accrual accounts C. individual

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Answer: B. Individual ledger accounts

Explanation:

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