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Answer: d. Dynamic pricing strategy
Explanation:
The companies mentioned above are increasingly turning towards Dynamic pricing in order to maximize sales and therefore increase profitability.
Dynamic pricing refers to a strategy where goods are priced at the optimal price based on the conditions at the time. In other words, it involves trying to sell at a price that is cheapest for the customer based on factors such as consumer willingness to pay, competition and others.
Prices can therefore change multiple times in as little a period as a day just to ensure that customers buy the goods being offered.
Answer:
9.4%
Explanation:
Initial investment=$22,000+$22,000=$44,000
number of shares bought=$44,000/$110(the investor paid $55 out of every $110)
number of shares bought=400
Increase in share in one year=$110*8%=$8.80
loan interest on each share=$55*6.6%=$3.63
rate of return=(increase in share price-loan interest)/initial amount invested
rate of return=($8.80-$3.63)/$55
rate of return=9.4%
Conversion cost is defined as the sum of direct labor costs and manufacturing overhead costs. It is the manufacturing cost needed to convert raw materials to a product. From the information given above, the conversion cost is the summation of direct material costs, direct labor costs and factory overhead costs.
$3000,000 + 7,000,000 + 5,000,000 = 15,000,000
Therefore, the conversion cost is $15,000,000.
The present value (PV) of an annuity of P equal periodic payments for n years at r% is given by:
where
is the <span>present value of an annuity factor for n years at r%.
Given that </span>a<span>
company borrowed $40,000 cash from the bank and signed a 6-year note at
7% annual interest and that the present value of an annuity factor for 6 years
at 7% is 4.7665.
Then
Therefore, </span><span>the annual annuity payments equals $8,391.90</span>
