Answer:
Perfection records in it's books an Investment in Associate of $486,000
Explanation:
Hi, your question has missing information, i tried to look for the full question online but I could not find it.
However, I have prepared below explanation to the problem.
When a firm has investments into another firm of less than 50% voting rights in stake but greater than 20% we say that firm has significant influent in the investee. The firm is said to have an Investment in an Associate.
Investments in Associates are always recorded using the Equity Method of Accounting.
<u>Entries for Investment in Associate are :</u>
Debit :Investment in Associate ($1,944,000 × 25%) $486,000
Credit : Share of profits of associate $486,000
Conclusion :
Perfection records in it's books an Investment in Associate of $486,000
Answer:
a. The price that the company should sell the new toy at if it prices at cost plus profit at 100% profit markup is:
= $20.
b. The price that the company should sell the new toy at if it prices using competitive pricing is:
= $22.50 (average of competitors' prices)
c. The price that the company should sell the new toy at if it prices using penetration pricing is:
= $20 (lowest market price)
d. The price that the company should sell the new toy at if it prices using price skimming is:
= $25.
Explanation:
a) Data and Calculations:
Cost of producing a new toy = $10
Competitors' prices are:
Product A – $25
Product B – $20
Product C – $23
Product D– $22
Total = $90
Average price = $22.50 ($90/4)
Cost = $10
Markup 10 ($10 * 100%)
Price = $20
b) An important consideration in the pricing of products is customers' and competitors' reactions to the firm's selling price. The purpose of considering customers is to ensure that enough demand is generated to cover production cost and make profits. Competitors can wage price wars to discourage new entrants into their markets. Many pricing methods are in use, depending on the prevailing market realities.
Answer: Option C
Explanation: Planning in management refers to the process in which the managers focuses on determining the goals of the company and ascertaining the need of resources needed to achieve those goals. It is the first step in the management process.
It is focused on allocating the resources to different departments and sections as per the needs, so that the objectives of the organisation could be achieved.
Thus, from the above we can conclude that the correct option is C.
The correct answer should be Option C: 30 graphic T-shirts on sale for $10
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