Suppose that Ray-Ban is considering a new line of sunglasses that would be sold in major department
stores. The new line would be positioned as a more distinctive brand than the typical glasses sold
through department stores, and would be priced higher than other brands in the store, but a lower price
line than the current Ray-Ban lines that are sold through more selective stores. In determining the price
for this sunglass line, Ray-Ban wants to gather information about all brands sold in department stores
<span>and about customers' perceptions of those brands.
</span><span>Given Ray-Ban's plan for positioning the new sunglass line, they should use a <span>price skimming strategy when introducing their new product.
</span></span><span>Price skimming is a pricing strategy in which a marketer sets a relatively high initial price for a product or service at first, then lowers the price over time. It is a temporal version of price discrimination/yield management.</span>
Annual tax return is a document which states the income and expenses of a certain firm or individual and it is given to the tax department for further checking.
Depreciation expenses is the decrease in the cost of an asset that has appeared over a period of time because of its use. Any expense that is related to a certain asset is included to calculate the depreciation expense.
Depreciation expense: Cost of the asset - residual value/ total units expected to be produced * actual units produced
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Answer:
The bond that should pay the highest interest rate is:
d. a bond issued by a new restaurant chain.
Explanation:
This is based on the fact that the new restaurant chain is untested, has higher risk profile and the bondholders are assuming higher risks, and the bond cannot be compared to the bonds issued by the US government, New York State, and General Motors, in that order. The new restaurant chain will be offering a higher rate of return than others because it is new to the bond market and would like to attract potential bond investors. Without the higher rate, therefore, it will not be successful in the bond issuance.
The correct anwser is B. its the only one that makes since
Answer:
$91 favorable
Explanation:
Variable overhead rate variance = (Standard variable overhead rate - Actual variable overhead rate) * Actual hour worked
Therefore, we have:
Variable overhead rate variance = ($8.00 - $7.90) * 910 = $91 favorable
Note: the variable overhead rate variance is said to be favorable becasue standard variable overhead rate is geater than the actual variable overhead rate.
