Based on the fact that Snowpeak Ski Resort offers prices for lifts that are barely over their marginal cost but still make profits from high equipment rental, the pricing strategy in use is Cross-subsidization.
<h3>What is Cross-subsidization?</h3>
This is a pricing strategy that allows a company to charge one group of customers a higher amount for goods sold or services rendered while charging another group of customers a lower amount for other goods and services.
The logic is that the profits from the higher priced goods will take care of the marginal profits from the smaller cost goods and services.
Companies do this because they know that there are services that they can offer that will be easier to sell to people at a higher cost than a lower one. This is what Snowpeak Ski Resort is doing by using the rental fee of equipment to make profits.
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Answer:
$4,927
Explanation:
The computation of tax liability is shown below:-
Suta wage base is $28,200. So, income besides $28,200 is not subject to Suta tax.
Total taxable income = Annabelle + Beatrice + Michael + Howard
= $28,200 + $24,880 + $28,200 + $28,200
= $109,480
Suta tax liability = Total taxable income × Tax rate
=$109,480 × 4.5%
= $4,927
So, for computing the Suta tax liability we simply multiply the total taxable income with tax rate.
Answer:
below
Explanation:
<h2><u>Multiple choice </u></h2>
If a college sets its tuition<u> below</u> the equilibrium tuition, then it will have to use some form of non price-rationing device to determine who will be accepted for admission to the college.
Answer:
Allocated cost= $14,400
Explanation:
<u>First, we need to calculate the allocation rate for setup:</u>
<u></u>
Cost allocation rate= total estimated costs for the period/ total amount of allocation base
Cost allocation rate= 60,000 / 50
Cost allocation rate= $1,200 per setup
<u>Now, we can allocate setup cost to G10:</u>
Allocated cost= 1,200*12
Allocated cost= $14,400
Answer:
12.18%
Explanation:
Present value = $34,700
Future Value = $173,500
Time (n) = 14 years
Interest Rate = i
Future Value = Present Value * (1+i)^n
$173,500 = $34,700 * (1 + i)^14
(1 + i)^14 = $173,500/$34,700
(1 + i)^14 = 5
1 + i = 5^(1/14)
1 + i = 1.1218284
i = 1.1218284 - 1
i = 0.1218284
i = 12.18%
So, the annual interest rate she must earn is 12.18%.
