Answer:
50%
Explanation:
Contribution margin is used to determine the profitability of a product. it is price less variable cost
Contribution margin ratio = (price - variable costs) / price
variable cost = 80 - 20 = 60
price = 120
(120 - 60) / 120 = 50%
The pricing strategy that calls for a new product being priced high to make optimum profit while there is little competition is called as Skimming price strategy
Skimming Pricing, also known as price skimming, is a pricing strategy that sets the price of new products higher and lowers them when competitors enter the market. Skimming prices are the opposite of penetration prices, which set lower prices for newly launched products in order to build a large customer base from the beginning.
Skimming pricing strategy refers to setting relatively high initial prices for new products or services for early adopters who are not price sensitive when there is a strong relationship between price and perceived quality. .. Prices can go down over time.
An example of a skimming strategy can be found primarily when major technology companies such as Apple, Samsung, and Sony are developing new technologies that are known to be in high demand.
Learn more about Skimming prices here:brainly.com/question/20927491
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Answer:
$270,000
Explanation:
Calculation of total manufacturing cost assigned to Job 436
Direct Materials
Dept A $50,000
Dept B $10,000
Direct Labor
Dept A ($80,000 x 1/2) $40,000
Dept B $60,000
Manufacturing Overheads
Dept A $80,000
Dept B ($60,000 x 50%) $30,000
Total $270,000
Therefore,
The total manufacturing cost assigned to Job 436 was $270,000.
Answer:
A.True
Explanation:
the net profit will drop for 0.05 to 0.045
but the as the equity multiplier increase to 2 this means equity finance 50% of the company thus, the return on equity will be of:
Assets turnover x profit margin = 0.0675
that is the return on assets.
but equity present half the assets thus, the multiplier is 2
return on assets x equity multiplier = return on equity
0,0675 x 2 = .135 = 13.5%
This makes the statemnt true, the comapny will benefit from taking debt as will increase the return on the stockholders which is the goal for a good management.
Answer:
Yes, since you will gain $14
Explanation:
1. We're going to get $6 in this case. Because our profit represents the difference in our readiness to pay and the cost charged by the seller.
2. As we are ready to sell the seller is now 3, from this contract we will receive $17-3= $14.
Every other vendor would lower our $14 surplus
The tender price refers to a purchaser's highest price for money. The demand price corresponds to a seller's cheapest price for a product.
This is known as the spread, but the smaller the spread, the larger the visibility of the defence.
