True. This demonstrates that buyer has confidence on buying products that are branded. She has trust that the product can satisfy her because the brand already earned a reputation in its field. It also shows that she passed scrutiny on the bought product.
Answer:
The indifference point is 10,000 units.
Explanation:
Giving the following information:
Two vendors have presented proposals. The fixed costs are $ 50,000 for proposal A and $ 70,000 for proposal B. The variable cost is $ 12.00 for A and $ 10.00 for B. The revenue generated by each unit is $ 20.00.
Proposal A= 50,000 + 12*x
Proposal B= 70,000 + 10*x
70,000 + 10x= 50,000 + 12x
20000= 2x
10000= x
The indifference point is 10,000 units.
Answer:
-The technology that is available for the market.
- The nature of the products
Explanation:
Latest technology often able to produce larger amount of products with significantly lower time. This will help reduce the overall cost of production in the long run. Business owner need to consider this and calculate whether the initial investment that needed to be made to install the technology will worth the value in the long run.
Nature of the products consisted of all the characteristics that our products process. For example food products tend to not have a long shelf life unlike fashion product. This difference in characteristics influence the type of production method that business owners could implement.
For example, It is impossible for business owners to mass produce produce food products with the expectation that it can maintain their quality in the warehouse, but producer of fashion products could make that expectation.
Control of money supply.
The main function of Federal Reserve is to conduct the monetary policy by influencing money and credit conditions.
Solution:
Inventory 21,320 debit
A/P 21,320 credit
--to record purchase from Game Girl --
Inventory 360 debit
Cash 360 credit
--to record the freight-in--
A/P 1,560 debit
Inventory 1,560 credit
--to record returned goods to GameGirl--
A/P 19,760 debit
Inventory 395 credit
Cash 19,365 credit
--to record payment to GameGirl--
accounts receivables 17,360 debit
sales revenues 17,360 credit
COGS 8,406 debit
8,406 credit
--to record sale and subsequent cost of the sale--
total amount of the purchase in dollars:
82 game devices x 260 dollars each = 21,320
six returned devices:
6 x 260 = 1,560
invoice balance: 21,320 - 1,560 = 19,760
discount because payment within the first ten days:
19,760 x 2% = 395
final value: 19,760 - 395 = 19,365
sale of 62 devices at 280 = 17,360
