There exists unfair pricing policy in a market which is not purely competitive, and the seller may have monopolistic advantage.
<h3>What is unfair pricing policy?</h3>
Unfair pricing policy refers to charging different prices to different consumers for the exact product by a seller due to having a competitive advantage, leading to unfair trade.
Hence, the unfair pricing policy is as defined above.
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For this problem, we are required to calculate the net operating income.
In order to answer the question, we will first calculate the impact of the changes on the Hardware department. Then we will add the remaining fixed costs that are currently charged to Linens that will continue.
To calculate net operating income, subtract operating expenses from the revenue generated by a property. Revenue from real Hardware department estate includes rental income, parking fees, service changes, vending machines, laundry machines, and so on.
Net income, also known as the bottom line, Hardware department indicates a business's profitability. It shows how much profit is left from revenue after accounting for expenses and liabilities. Net income is profit that can be distributed to business owners or shareholders or invested in business growth.
A corporation's positive net income causes an increase in the retained earnings, which is part of stockholders' equity. A net loss will cause a decrease in retained earnings and stockholders' equity.
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