Answer: a) It captures the full price that customers might be willing to pay for a product.
Explanation:
The cost-plus pricing method involves using the total cost to come up with a selling price by simply adding a markup that the company would like as profit to the total cost of the product per unit and then selling it at that price.
It is easy to justify to stakeholders, simplifies pricing processes and is quite easy to measure or estimate.
It however does not capture how much a customer may be willing to pay for for a good as it is based on the company's expenses and preferred profit.
A denotation is the literal meaning of a word, the exact definition, and a connotation is the emotional input that is connected a certain word, the secondary meaning, e.g. when you think of a dove it implies peace and tranquility
Answer:
Antonio and Replacement of Golf Clubs
a. He should cash the CD and use the proceeds to finance part of the golf clubs.
b. The reason is that he would pay more in in-store financing totaling $37.06 per annum than the net interest he would generate from the CD totaling $23.18 per annum. And Antonio would incur a net loss of $13.88 if the CD was renewed unlike the $5.74 if the CD were not renewed.
Explanation:
Option 1: Renew Certificate of Deposit (CD):
Interest earned = $33.48 ($600 * 5.58%)
Taxes = 10.30 ($33.48 * 30.75%)
Net Income = $23.18
Cost of in-store financing = $37.06 ($710 * 5.22%)
Net Loss(overall) = $13.88 ($37.06 - $23.18)
Option 2:
Sale-off of CD = $600
Net financing required = $110 ($710 - $600)
Cost of financing = $5.74 ($110 * 5.22%)
Explanation:
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Answer:
the amount of cash received from customers is $97 million.
Explanation:
The cash received from customers can be determined by opening a Total Receivables T-Account.
Total Receivables T-Account
<u>Debit :</u>
Beginning Balance $6 million
Sales $100 million
Totals $106 million
<u>Credit </u>:
Ending Balance $9 million
Cash Received from Customers (Balancing figure) $97 million
Totals $106 million