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Tomtit [17]
3 years ago
9

Diane owns a bakery where she sells cupcakes. Two blocks down there is another bakery, CC's Bakery, that sells cupcakes for $1 l

ess than Diane. Diane decides to lower her price and match CC's Bakery prices. What type of pricing strategy is Diane implementing?
Business
1 answer:
BabaBlast [244]3 years ago
8 0

Answer:

competition based pricing

Explanation:

When a company engages in a competition based pricing strategy, they will set the price of their products or services taking based on the price of their main or direct competitor. The product or service provided by the competitor is used to benchmark both the price and quality of the goods and services offered by the company.

For example, Coca Cola products are used as a price reference for all the soda products sold by other companies.

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Answer:

Annual depreciation= $12,970

Explanation:

Giving the following information:

Kansas Enterprises purchased equipment for $72,500 on January 1, 2021. The equipment is expected to have a five-year service life, with a residual value of $7,650 at the end of five years.

To calculate the depreciation expense under the straight-line method, we need to use the following formula:

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (72,500 - 7,650)/5

Annual depreciation= $12,970

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Answer:

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