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1 year ago

Managers should consider the price sensitivity of the target market when setting prices.

Business

1 answer:

UkoKoshka [18]1 year ago

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True. Managers should consider the price sensitivity of the target market when setting prices.

<h3>What is meant by price sensitivity?</h3>

The degree to which demand fluctuates as a product's or service's price changes is known as price sensitivity. The price elasticity of demand, which implies that certain buyers won't pay more if a lower-priced choice is available, is a typical method for measuring price sensitivity.

By dividing the percentage change in quantity demanded by the percentage change in price, one can calculate price sensitivity. Sensitivity in finance refers to how much a market instrument will change in response to changes in underlying factors, most frequently in terms of how its price will move in response to other circumstances.

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Managers should consider the price sensitivity of the target market when setting prices.

t OR f

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Assuming Raven uses straight-line depreciation, the Company would recognize a $2,000 gain.

<h3>What is straight-line depreciation?</h3>

The simplest way to determine depreciation over time is through straight-line depreciation. According to this strategy, an asset's value is reduced by the same amount for each year that it is in use.

<h3>Depreciation formula:</h3>

(Depreciation expense per year = (Cost of the asset - Salvage value) ÷ Useful life.

The given data is -

The cost of asses is given as $64,000.

The salvage value is given as $10,000.

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Calculation for the depreciation-

Depreciation expense per year = ($64,000 Cost - $10,000 Salvage) ÷ (6 Year life)

Depreciation expense per year = $9,000

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Accumulated depreciation on January 1, Year 5 = $36,000.

Book value = $64,000 Cost - $36,000 Accumulated depreciation

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Therefore, the gain on the scale is $2,000.

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2 years ago

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Answer:

<u><em>FALSE</em></u>

Explanation:

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3 years ago

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C. Opening a bank.

Because your opening up an bank account, therefore you not using any kind of money, or credit. UNTIL you put something inside the account.

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Answer:

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