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1 year ago

1. Discuss why is finding and implementing the right pricing strategy critical to a company’s success?

1 answer:

4 0

The importance of pricing in business is one of the most important features that decides the profitability of the business. Following are the suitable reasons for it :

1) Effects on the profit margins - The pricing of the product determines how much the company will make per unit of the product sold. If the pricing is apt, then the items sold will eventually increase and profitability will rise.

2) Competition - Competition in the market depends ultimately on the pricing and quality of the product. The right pricing of the product (low from your competitors) gives you a competitive advantage over other similar competitors.

Thus, setting the right price is very critical in a business. (for example how setting prices to 99$ and 100$ makes the difference).

An example of a well-priced product/company is Mcdonald's, it uses the low-cost strategy to maximize its profit and market share. It follows the right pricing of its products, which gives McDonald's an edge over its customers and capitalizes on the e-market.

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What is a power grid?

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Answer:

What is a power grid?

C) Transmission lines and transformers that take and send electricity from generating facilities to end users

Explanation:

A power grid is a system of interconnected transmission lines and transformers that takes electricity from the producers to the consumers. The power grid is very important in the supply of electricity to consumers. Before power is to be transmitted to the consumers, it has to be generated. Traditionally, the conventional way of generating power was from central power stations that utilized sources like; fossil fuels, coal and natural gas. In the recent past, however, more advancements have been made towards more clean energy sources like; wind, geothermal and hydroelectricity. Clean energy sources have several benefits over the traditional sources of energy, like; they don't cause harm to the environment and also they are renewable since they can be used over and over without depletion.

Once the energy has been harnessed and converted to electricity, it needs to be transmitted. The network for transmission to the consumers is what makes up the power grid. Transmission is usually done at very high voltage to minimize losses. However, before providing it the consumers, the electricity needs to be converted to a low voltage by the use of transformers for domestic and commercial consumption.

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3 years ago

Read 2 more answers

Green Cabinets is a custom cabinet builder. They recently completed a set of kitchen cabinets (Job Number 1478), as summarized b

Alinara [238K]

Answer:

a. $612

b. $2,480

Explanation:

a. Overhead is applied at a rate of $12 per direct labor hour.

Overhead applied would therefore be;

= 12 * total labor hours

= 12 * 51

= $612

b. Total Cost = Direct labor cost + Direct Material cost + Manufacturing overhead

= 978 + 890 + 612

= $2,480

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3 years ago

The following information is for the Jeffries Corporation: Product A: Revenue $18.00 Variable Cost $14.00 Product B: Revenu

shusha [124]

Jeffries Corporation's Operating Income from the two products is <em>A. $35,000.</em>

The operating income is the difference between the revenue and operating costs (variable and fixed costs).

Data and Calculations:

Product A Product B Total

Revenue $18.00 $21.00

Variable cost 14.00 13.00

Contribution $4.00 $8.00

Fixed costs $143,000

Total sales units 35,600

Sales mix 3 1 4

Sales units 26,700 8,900 35,600

Total contribution$106,800 $71,200 $178,000

Total fixed costs 143,000

Operating income $35,000

Thus, the operating income is $35,000.

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2 years ago

The demand curve for a monopoly is horizontal because the demand is perfectly elastic. upward sloping. vertical because the dema

timama [110]

Answer:

Downward sloping

Explanation:

According to the law of demand, this law states that there is a inverse relationship between the price of a commodity and the quantity demanded for a commodity. This indicates that as the price of the commodity increases then as a result the quantity demanded for that commodity decreases and as the price of the commodity decreases then as a result the quantity demanded for that commodity increases.

Monopoly refers to the market conditions in which there is only a single firm operating in a whole market.

Hence, due to this inverse relationship between the price and the quantity demanded, the demand curve for a monopoly firm is downward sloping.

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3 years ago

On November 30, Parlor, Inc. purchased for cash at $15 per share all 250,000 shares of the outstanding common stock of Shaw Co.

scoray [572]

Answer:

Value of goodwill = $350,000

Explanation:

In case where is investment in 100% shares of a company then that may give rise to goodwill or rise to capital reserve.

Any amount paid to acquire that interest in company more than the value of such company is recorded as goodwill.

Here, cost of acquisition = $15 $\times$ 250,000 = $3,750,000

Carrying value of net assets of the company = $3,000,000

Increase in value due to fair value = $400,000

Value of goodwill = Purchase price - Fair Value of net assets

Therefore, value of goodwill = $3,750,000 - ($3,000,000 + $400,000) = $350,000

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3 years ago