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White raven [17]

3 years ago

9

Elmo Inc., a global conglomerate, designed the ElBrush, an electric toothbrush. Sensing market demand for the electric toothbrus

h, Elmo started with an ideal selling price of $13 based on customer value considerations and then targeted costs to ensure that the price was met. This exemplifies ________.high-low pricingeveryday low pricingcost-plus pricingtarget costingcompetition-based pricing

1 answer:

Alborosie3 years ago

3 0

Answer:

Target costing

Explanation:

-High-low pricing is when companies initially establish a high price for a product and then, they decrease it when people are less willing to buy it.

-Everyday low pricing is when companies offer low prices on their products all the time.

-Cost-plus pricing is when companies determine the cost of the product and add the profit margin they need to establish the price of the product.

-Target costing is when companies establish a target cost for the product by taking the price and subtracting the margin they expect from it.

-Competition-based pricing is when companies use the price the competitors have for the same product to establish the price.

According to this, the answer is that the situation exemplifies target costing.

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The Outlet needs to raise $3.2 million for an expansion project. The firm wants to raise this money by selling zero coupon bonds

Pani-rosa [81]

Answer:

14,783.33 bonds

Explanation:

Given

Par value FV = $1000

n =20 * 2 =40

R= 7.80/2 = 3.90%

Price per bond:

price per bond : $PV = \frac{FV/}{(1+r)^n}$

$= \frac{000}{(1+0.039)^{40}}$

$= \frac{1000}{4.619786467}$

= 216.46

No. of bonds to be issued = $\frac{amount to raise}{ price per bond}$

$= \frac{3,200,000}{216.46}$

= 14,783.33 bonds

3 0

3 years ago

You recently sold 100 shares of Microsoft stock to your brother at a family reunion. At the reunion your brother gave you a chec

Hoochie [10]

Answer:

Option E

Explanation:

A direct transfer refers to the shift of funds from certain form or section of a tax deferred retirement savings plan to another. Direct payments are not deemed to be statutory dividends, and are therefore not taxed as profits or susceptible to premature payment charges. Now normally this form of transition happens digitally.

In simple terms, cash loans exist when a company sells its shares in return for money specifically to the savers. There is no financial institution involved in this procedure. Small firms typically use direct transfers, so very less money is generated during this phase.

6 0

3 years ago

AllSpice Incorporated plans to do business with a company located in the Leone Republic, a common law country. The companies hav

zheka24 [161]

The contract must be very detailed and should include all the contingencies spelled out in it.

<u>Explanation:</u>

Contract is a document that is made between two or more than two parties who have come in to an agreement with each other over a particular thing. The contract might be a business contract that the parties make which should have the proportion of profit and liabilities of the business that is to be shared among the partners.

Since the profit and losses are to be shared between the business partners on the basis of this contract, the contract should have very detailed information in it and all the contingencies should be spelled out in it.

8 0

3 years ago

A major weakness of planning budgets is that A. They are feared only to a single level of activity. B. They cannot be used to as

Ksivusya [100]

Answer:

The correct answer is letter "D": All of the above.

Explanation:

Budgets are estimates of the expenses that may be incurred during the development of a project. Managers try to keep the expenditures as close as to the budget to make sure a reasonable amount of resources were used. Though, disadvantages of counting on budgets are, for instance, that they are set mostly to a single level of activity without considering adjustments that might be necessary as a result of external changes; also, budgets are a constraint for projects since the executive responsible must monitor how the resources are spent periodically to find out if they will be enough for the project completion.

4 0

3 years ago

Paulina Lesky is 27 years old and has accumulated $7,500 in her self-directed defined contribution pension plan. Each year she c

zimovet [89]

Answer:

The answer is "Option D".

Explanation:

The amount accrued in the pension system until now $= 7500$

Danger or security account proportion $= 20 \%$

The percentage of the amount kept in a safe account $(PV) = 7500\times 20\% = 1500\%$

Number of investment years owned by $(n)=63-27=36$

Risk-free return rate $I = 3\%$

Combined total amount up to age 63 (formula for the current value) = $Present \ value\times (1+i)^n$

$=1500\times (1+3\%)^{36}\\\\=4347.417492$

The contribution is $\$2000$ a year and the employer corresponds with the same amount for the pension plan.

Total annual contribution $= 2000+2000 = 4000$

Risk-free or healthy account proportion $= 20\%$

Amount invested annually $(P) = 4000\times 20\% = 800 \ (Risk \ free)$

Annual deposit amount (n) for years $=63-27 =36$

Returns free of risk $I = 3\%$

An cumulative sum due to an annuity $= P\times \frac{(((1+i)^n)-1)}{i}$

$=800\times \frac{(((1+3\%)^{36})-1)}{3\%}\\\\=50620.75541$

Total amount accumulated in safe account $= FV\ of \ PV + FV$ of annuity

$=4347.417492+50620.75541\\\\=54968.1729\\\\=54968$

6 0

3 years ago