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andrew11 [14]
3 years ago
7

John is going to buy a car. He wants a used Honda. The salesmen shows him one from 2012. John's not really positive how much the

car is worth to him. The sticker says 14,000 and they end up agreeing on 12,000. If the sticker had said 13,000, John might not have agreed to 12,000 - he might have become convinced that the car was only worth 11,000 to him. While he certainly did not just accept the starting price (he made some changes away from that starting point), his final agreed upon price (or final estimate of the car's value) was still biased/influenced by the first number he heard. John is relying on the:
Business
1 answer:
m_a_m_a [10]3 years ago
4 0

Answer:

anchoring bias

Explanation:

In business, anchoring bias happens when a consumer relies on pre-existing information (in this case sales price) to make their purchasing decisions. E.g. a sales promotion where a before price is set as the anchor to show that the after price (with the discount) is a really good deal.

In this case, John started to negotiate a sales price using the sticker price as an anchor, and ended up making a good deal because he got a $2,000 discount.

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Breakeven analysis: Barry Carter is considering opening a music store. He wants to estimate the number of CDs he must sell to br
Scilla [17]

Answer and Explanation:

The computation is shown below:

a. The operating break even point in number of CD is

= Fixed operating cost ÷ (Selling price per unit - variable operating cost)

= $73,500 ÷ ($13.98 - $10.48)

= 21,000 CDs

b. Now the total operating cost is

= Fixed cost + Quantity × variable cost per unit

= $73,500 + 21,000 CDs × $10.48

= $293,580

c. If he can sell 2,000 CDs per month than annual sale is 24,000 CDs and the break even is exceeded than 3,000 CDs by taking a difference of 24,000 CDs and 21,000 CDs . So, it should go to the CD business

d. Now the EBIT is

= (Selling price × Quantity) - Fixed cost - (Variable price × Quantity)

= ($13.98 × 24,000) - $73,500 - ($10.48 × 24,000)

= $335,520 - $73,500 - $251,520

= $10,500

We simply applied the above formulas

8 0
3 years ago
Self doubt is a result of ______. a. Having great success b. Lacking self-esteem c. Successful conflict resolution d. An asserti
Andreas93 [3]
<span>Self doubt is a result of lacking self-esteem.

</span>
6 0
3 years ago
Read 2 more answers
Chandler Co. has a loan that accrues interest at a rate of $28 a day. The company pays the interest once a quarter. What adjustm
prohojiy [21]

Answer:

The Adjustment Entry for accrual of Interest Expense will be as follows:

                                              Dr.       Cr.

Interest Expense                $840

Interest accrued Payable               $840

Explanation:

Interest per day = $28

Interest expense for the Month = $28 x 30 = $840

$840 of Interest expense will be accrued at the end of the month and it should be adjusted accordingly.

3 0
2 years ago
Using percentages or ratios based upon unforeseen differentials in prices, Forward Pricing Rates Agreements (FPRAs) protect the
krok68 [10]

Rates for corporate outings is NOT an example of an FPRA rate

Explanation:

The FPRA is an agreement between an entrepreneur and a governmental agency in which some indirect charges are determined over a set period of time. All such rates are price forecasts used for cost agreements and contract changes.

By using an FPRA the contracting system can be accelerated by removing the need for audit and analysis of rates. The Contracting Officer (COO) oversees the prices of the contracting party. The ACO should always be asked any questions about the prices. After a FPRA is reached, a copies of the agreement should always be provided for in any ensuing proposal.

6 0
3 years ago
Multi-item indexes are unable to account for dual sources of status (both men and women) in american households because they?
Goshia [24]

These consider many variables simultaneously and weight these according to a scheme that mirrors societal perceptions. It is a rating scale made up of several items, each of which is a separate question or statement that must be evaluated. Subjects will be able to explain their feelings about many aspects of their professions using a multi-item measure.

This will considerably increase the measure's precision and validity. As a result, multi-item measures are among the most essential and widely utilized tools in social research. Multiple-item scales are intended to sample a broader range of interpretations in order to capture the entire spectrum of a construct.

To learn more about  multi-item, click here.

brainly.com/question/14407306

#SPJ4

7 0
1 year ago
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