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sergejj [24]
3 years ago
10

Creative Chronometer, Inc. is planning to launch a new brand of watches for kids. Similar watches are available in the market fo

r $56. In order to penetrate the market, the company plans to use target pricing and desires a 28% net profit markup on total cost. Calculate the target cost. (Round your answer to the nearest cent.) $71.68 $43.75 $40.32 $15.68
Business
1 answer:
Ivenika [448]3 years ago
4 0

Answer: $43.75

Explanation:

Given the following :

Markup on total cost = 28%

Projected selling price (price of similar products) = $56

Target cost = projected selling price - desired profit

Desired profit = 28% of target cost

Assume target cost = a

a = 56 - 28%a

a = 56 - 0.28a

a + 0.28a = 56

1.28a = 56

a = 56 / 1.28

a = 43.75

Therefore, target cost 'a' equals $43.75

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Answer:

a) A discount retailer

Explanation:

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So as per the given situation, the first option i.e. discount retailer should have the negative cash conversion cycle as in other options it created the positive impact

So the option a is correct

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2 years ago
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Whenever the production of a good creates negative externalities, an unregulated market will result in:
sp2606 [1]

Answer:

Option (C) is correct.

Explanation:

In an unregulated market, negative externality results in a higher social marginal cost than the firm marginal cost because this market is not properly regulated by the government officials. Hence, these firms are not taking into account the effect of negative externalities in their cost.

We know that the consumer's decision is more offenly based on the point where the marginal cost is equal to the marginal benefit because they are not taking the impact of negative externalities.

If proper action is not taken by the government, negative externality will result in a market inefficiencies.

6 0
3 years ago
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More than 95% of customers in the US wireless mobile phone market are served by AT&T, Verizon, and T-Mobile. This market is characterized by oligopolistic rivalry.

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The market for smartphones is it expanding?

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brainly.com/question/28041325

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