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1 year 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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The selling price of a television is $1,600 and the cost to the retailer is $225. what is the retailer's gross profit from th

Anarel [89]

Find the gross profit fro the sale of the television:
Gross profit = Sales - Cost of goods sold
Gross profit = $1,600 - $225
Gross profit = $1,375

The gross profit of a sale is the profit from sales minus the cost it took to produce/complete the item or service.

8 0

3 years ago

Airlines can price discriminate by determining people's _______ to pay for luggage accommodations. Some customers will check a b

mr Goodwill [35]

Answer:

Willingness to pay

Revenue

Two

Elastic

Inelastic

Explanation:

Price discrimination is when a producer or a seller charges different prices for the same product usually in different markets.

In price discrimination, a seller attempts to remove or reduce consumer surplus by charging the consumer at his willingness to pay. For price discrimination to be effective, a seller must be able to estimate the willingness to pay of consumers.

Price discrimination is successful when a seller earns higher profits when she discriminates compared to when she didn't price discriminate.

Price discrimination exists in the airline industry. One of the ways price discrimination exists in the airline industry is through charging to check bags. Customers ( people who board airplanes) are distributed into two groups- those who won't pay to check bags and those who would pay to check bags.

It is assumed that those who would pay to check their bags have a price inelastic demand because they are indifferent to paying an extra amount for their luggage.

Inelastic demand is defined as when a small change in price has no effect on quantity demanded.

While it is assumed that those who won't pay to check their bags have an elastic demand because they are unwilling to pay extra to check their luggages.

Elastic demand is when a change in price has effect on quantity demanded.

5 0

3 years ago

Thomas Book Sales, Inc., supplies textbooks to college and university bookstores. The books are shipped with a proviso that they

nata0808 [166]

Answer:

The following summarizes the solution to the given problem.

Explanation:

The given values are:

Sales,

= $660,000

Expenses,

= $255,453

Received cash revenues,

= $605,934

(a)

According to the accrual, profits would be acknowledged and therefore not necessarily received on the occasion of purchase.

⇒ $Net \ income=Sales-Expense$

On substituting the given values, we get

⇒ $=660,000-255,453$

⇒ $=404,547$ ($)

(b)

⇒ $Net \ Income =Received \ cash \ revenues-Expenses$

On substituting the given values, we get

⇒ $=605,934-255,453$

⇒ $=350,481$ ($)

(c)

The reliable financial foundation again for a financial consultant is more helpful because it demonstrates or represents the organization's appropriate financial status.
It accepts the profits throughout a similar time frame.

5 0

3 years ago

he 2017 balance sheet of Kerber's Tennis Shop, Inc., showed long-term debt of $6 million, and the 2018 balance sheet showed long

Cerrena [4.2K]

Answer:

The firm’s 2018 operating cash flow, or OCF is $1,470,000

Explanation:

For computing the operating cash flow, we have to use the formula of cash flow from assets which is shown below

= Operating cash flow - net capital spending - changes in working capital

where,

cash flow from assets = cash flow to creditors + cash flow to shareholders

= $5,000 + $60,000

= $65,000

And, the other item would remain same

Now put these values to the above formula

So, the value would equal to

$65,000 = Operating cash flow - $1,450,000 - (-$85,000)

$65,000 = Operating cash flow - $1,450,000 + $85,000

So, the operating cash flow = $1,470,000

5 0

3 years ago

Custom Foot operates six retail locations. At first glance, none looks any different from your basic old-fashioned shoe store, b

sergeinik [125]

Answer:

This is an example of mass customization

Explanation:

Mass customization is a business concept that involves mass manufacturing products that meet individual consumer wants and needs. It combines flexibility and personalization of unique made products with the low unit costs associated with mass production. It is sensitive to customer preferences with standardisation of processes, and the customer satisfaction that comes with owning a custom product.

Custom Foot offers a basic package for their boots and shoes, and then offer customers a variety of features they can add or subtract. With this, they can provide alternatives for modifying a product without the costs associated with making a 100 percent unique product.

8 0

3 years ago