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2 years ago

The fundmanetal philopshy behind _____ is to reduce investment in promotion and transfer part of the savings to lower price

1 answer:

8 0

The fundamental philosophy behind Everyday Low Pricing exists to decrease investment in promotion and transfer part of the savings to lower price.

<h3>What is Everyday Low Pricing?</h3>

Everyday Low Price (EDLP) is a pricing technique employed by merchants that guarantees customers the lowest prices in-store without the need to apply a coupon, wait for a sales event, or take any other steps to obtain an acceptable price on the goods they purchase. There are numerous companies that use an everyday low pricing strategy, including Wal-Mart, Amazon, Procter & Gamble, Winn-Dixie, and Trade Joe's. A survey indicates that 26% of American retailers use EDLP and 74% use high-low promotions.

You can reduce demand swings, prevent sales promotions, and improve your demand forecasting processes by using an everyday low pricing strategy. You can lower the price of your products using a cheap pricing plan to draw in more customers and boost sales.

Hence, The fundamental philosophy behind Everyday Low Pricing exists to decrease investment in promotion and transfer part of the savings to lower price.

To learn more about Everyday Low Pricing refer to:

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27. Presently, Stock A pays a dividend of $1.00 a share, and you expect the dividend to grow rapidly for the next four years at

Alchen [17]

The question is incomplete. The complete question is,

Presently, Stock A pays a dividend of $1.00 a share, and you expect the dividend to grow rapidly for the next four years at 20 percent. Thus the dividend payments will be

Year Dividend

1 $1.20

2 1.44

3 1.73

4 2.07

After this initial period of super growth, the rate of increase in the dividend should decline to 8 percent. If you want to earn 12 percent on investments in common stock, what is the maximum you should pay for this stock?

Answer:

The maximum that should be paid for the stock today is $40.29

Explanation:

We will use the two stage dividend growth model of DDM to calculate the price of the stock today. The DDM values the stock based on the present value of the expected future dividends from the stock. The formula for price under the two stage model is,

P0 = D1 / (1+r) + D2 / (1+r)^2 + ... + Dn / (1+r)^n + [Dn * (1+g2) / (r - g2)] / (1+r)^n

P0 = 1.2 / (1+0.12) + 1.44 / (1+0.12)^2 + 1.73 / (1+0.12)^3 + 2.07 * (1+0.12)^4 +

[2.07 * (1+0.08) / (0.12 - 0.08)] / (1+0.12)^4

P0 = $40.2853 rounded off to $40.29

3 0

3 years ago

Mariah Company has inventory at the end of the year with a historical cost of $ 95 comma 000. Mariah Company uses the perpetual

Eva8 [605]

U.S. GAAP, the journal entry to record the writeminusdown to LCM will:

Debit: Cost of goods sold $22400

Credit: Inventory $22400

Explanation:

In accordance to the GAAP Standard the LCM rule or the lower cost rule state that a company should value its inventory at the lowest cost(i.e actual cost of the inventory or its market price) at the end of each financial year.

In case of Mariah Company the historical cost, which is also referred to as the actual cost of the inventory and is valued in the books, as $95 000.

The current Replacement cost, which means how much expense one need to incur in order to replace an asset based on market rates, is $72600. so we can say that replacement cost is thus lower.

If the inventory is valued at historical cost in the books of accounts , it will have to been written down with the replacement cost value. To do this the difference between both costs will need to be deduced.

Difference is thus: $95 000 - $72600 =$22 400.

When we begin to write down , this is expensed to cost of goods sold. This is because there is a decrease in closing inventories.

If there is a decrease in this figure then it will lead to a subsequent increase in cost of goods sold, leading to it being debited to show this increase

Inventory side is credited as the value of the inventory has decreased, and inventories decrease is shown on the credit side.

Debit: Cost of goods sold $22400

Credit: Inventory $22400

7 0

4 years ago

Economic theory defines specialization as the production of one or just a few goods and services. Specialization refers to how a

Delvig [45]

Answer:

Both countries can benefit from trade through specialization.

Explanation:

Specialization refers to the situation when an individual, organization or country focuses on available resources and instead of producing a lot of products, they produce what they may need.

A country achieves specialization by producing a greater quantity of the goods it can produce at lower opportunity cost.

Through specialization, both countries involved in trade can produce well in a larger quantities than they need to consume. They trade the excess goods and are able to consume at a point beyond their production possibility curve.

3 0

3 years ago

Observational Exercise Leadership Traits Purpose 1. To gain an understanding of the role of traits in the leadership process 2.

leonid [27]

Answer:

George Washington: 1. Wisdom 2. Judgment and prudence 3. Determination

Winston Churchill: 1. Vision 2. Influence 3. Encouragement

Mother Teresa: 1. Selfless 2. Relentlessly focused 3. Caring

Bill Gates: 1. Passionate 2. Serving humanity 3. Focus

Oprah Winfrey: 1. Emotional intelligence 2. Humanist 3. Inspirational

Explanation:

leaders of my life

Mother:

My mother was a very first leader of my life. She is the captain of the ship (our house). She dealt with so many problems and issue on daily basis with so much courage and patience. She always has a smile on her face which is the strength of her and ours too. She is courageous, strong, patient lady I have ever seen.

Teacher:

My high school teacher was inspiration to me. he was so encouraging. He always treated us all the same without any discrimination. He always discouraged the bullies, racism, and any kind of hatred. He was always available for us to solve our problem and listen to us. he always taught us to never give up no matter what happened in life.

He was humanist, inspirational, problem solver.

7 0

3 years ago

Soup and salad cost $5.50 in total. the soup costs a dollar more than the salad. how much does the salad cost (in cents)?

atroni [7]

Soup + Salad = 5.50

Soup = Salad + 1

Subtitute both formulas into:

Salad + 1 + Salad = 5.50

2 Salad = 4.50

Salad = $ 2.25

= 225 cents

4 0

4 years ago

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