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3 years ago

Is price discrimination illegal? in recent years, the courts have interpreted the?

1 answer:

5 0

In recent years, the courts have taken to mean robinson-patman act such that price discrimination is illegal if it decreases rivalry but which also controlled language that could be understood as creating illegal all price discrimination not centered on alterations in cost.

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Bed & Bath, a retailing company, has two departments: Hardware and Linens.

LUCKY_DIMON [66]

Answer:

Net Operating Income will decrease by $503,080.

Explanation:

Sales of Hardware after 12% decrease will be $3,100,000 * 88% (100 - 12) = $2,728,000

Variable Expenses of Hardware after 12% decrease 891,000 * 88% (100 - 12) = $784,080

Net Operating Income of Hardware after 12% decrease = $623,920

The sunk cost for Linens fixed cost will be deducted to find the total of net operating income

$623,920 - $375,000 = $248,920

$248,920 is the net operating income after dropping Linens

The increase or decrease is calculated by finding the difference between current and old total net operating income

$248,920 - $752,000 = $503,080

3 0

3 years ago

Suppose there is an increase in the wage and the demand for the consumption good falls, what can you say about the supply of lab

kondor19780726 [428]

Answer:

A. The supply of labor will definitely increase.

Explanation:

If wages rise, there would be an increase in supply according to the law of supply. The law of supply says the higher the price, the higher the quantity supplied and the lower the price, the lower the quantity supplied.

If demand for consumer good decreases, the demand for Labour falls.

3 0

4 years ago

As of December 31, Year 2, Moss Company had total cash of $195,000, notes payable of $90,500, and common stock of $84,500. Durin

Setler79 [48]

Answer:

$20,000

Explanation:

Calculation for the amount of retained earnings as of December 31, Year 2.

Using this formula

Retained earnings=Total cash -Notes payable-common stock

Where,

Total cash= $195,000

Notes payable= $90,500

Common stock= $84,500

Let plug in the formula

Retained earnings = $195,000 − $90,500 − $84,500

Retained earnings= $20,000

Therefore the amount of retained earnings as of December 31, Year 2 will be $20,000

7 0

4 years ago

Bond outstanding with a coupon rate of 5.66 percent and semi-annual payments. The bond has a yield to maturity of 6.3 percent, a

vagabundo [1.1K]

Answer

Price of bond = 17.96825

Explanation:

Bond price = ∑(C / $(1+YTM)^{n}$ )+ P / $(1+i)^{n}$

where

n = no. of years

C = Coupon payments

YTM = interest rate or required yield

P = Par Value of the bond

put values in above equation

price = (5.66%/2) × 2000 × (0.31746) + ( 2000 ÷ 4.595× $10^{18}$ )

= 17.96825

3 0

3 years ago

Rigney Inc. uses the allowance method to estimate uncollectible accounts receivable. The company produced the following aging of

ANEK [815]

Answer:

Total estimated bad debts = $9,400

Explanation:

days outstanding A/c Receivable % estimate

0-30 $77,000 1 $770

31-60 $46,000 4 $1,840

61-90 $39,000 5 $1,950

91-120 $23,000 8 $1,840

over 120 $15,000 20 $3,000

Total 200,000 $9,400

4 0

3 years ago

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Is price discrimination​ illegal? in recent​ years, the courts have interpreted the?

Is price discrimination illegal? in recent years, the courts have interpreted the?