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Simora [160]
3 years ago
13

General motors, in order to achieve a 15 to 20 percent profit on its investment, prices its automobiles accordingly. this approa

ch is called ________.
Business
1 answer:
coldgirl [10]3 years ago
5 0
<span>Target return pricing. The target rate of return pricing is a way of pricing such that you begin with a rate of return objective, such as 8% of sales revenue, and then you adjust the price structure to achieve that target rate. This method is commonly used by market leaders.</span>
You might be interested in
Business Solutions sells upscale modular desk units and office chairs in the ratio of 3:2 (desk unit:chair). The selling prices
Doss [256]

Answer:

Results are below.

Explanation:

<u>First, we need to calculate the selling price per composite unit:</u>

<u></u>

selling price per composite unit= 1,280*0.6 + 530*0.4

selling price per composite unit= $980

<u>Now, the unitary variable cost per composite unit:</u>

Variable cost per composite unit= 780*0.6 + 280*0.4

Variable cost per composite unit= $580

<u>To calculate the break-even point in units, we need to use the following formula:</u>

Break-even point in units= fixed costs/ contribution margin per composite unit

Break-even point in units= 150,000 / (980 - 580)

Break-even point in units= 375

<u>Finally, the number of units per product:</u>

Desks= 375*0.6= 225

Chairs= 375*0.4= 150

4 0
3 years ago
stock currently sells for $35.25 per share. The dividend is projected to increase at a constant rate of 4.75% per year. The requ
USPshnik [31]

Answer:

The stock price 5 years from now will be 44.46

Explanation:

The stock price will increase like  compound interest at the same rate as the dividends.

Stock(1+ g)^{time} = Amount

Stock 35.25

time 5

dividend grow rate 0.0475

35.25 (1+ 0.0475)^{5} = Amount

Amount 44.45588696

The stock price 5 years from now will be 44.46

<u>Reasoning:</u>

In five years, if we calcualte the gordon dividend growth model:

\frac{divends_{year5}}{return-growth} = Intrinsic \: Value

and year 5 dividends would be:

Dividend\: (1+ g)^{5} = Divends_{year5}

\frac{Dividend\: (1+ g)^{5}}{return-growth} = Intrinsic \: Value

we can arrange the formula like this:

\frac{Dividend}{return-growth} \times (1+ g)^{5}= Intrinsic \: Value

The first part is the current stock price so our formula is confirmed.

$Market Value Today \times (1+ g)^{5}= Intrinsic \: Value

6 0
3 years ago
Riley Company borrowed $36,000 on April 1, Year 1 from the Titan Bank. The note issued by Riley carried a one year term and a 5%
IRINA_888 [86]

Answer:

The amount of cash flow from operating activities that would appear on the Year 2 statement of cash flows would be -$850 or $850 outflow

Explanation:

The computation of the cash flow from the operating activities for year 2 is shown below:

= Cash revenue in year 2 - interest on notes payable

= $950 - $1,800

= -$850

The negative amount shows an outflow of cash .

The interest on the note payable is computed by

= Borrowed amount × interest rate

= $36,000 × 5%

= $1,800

7 0
3 years ago
How do long term goals differ from short term goals
Lyrx [107]

Short term goals are anywhere from one week, to less then one year to complete. Long term goals are something that takes you a year or more to complete

5 0
3 years ago
Read 2 more answers
As a newly appointed human resource manager, what is MOST necessary to have an understanding of that provides the basis for all
Artyom0805 [142]

Answer:

Letter A is correct. <u>Organizational objectives.</u>

Explanation:

A human resources manager is responsible for meeting a company's staffing needs and activities, such as the recruitment and selection process, training and development, development of policies and procedures, performance management, salaries and benefits.

For this, it is necessary to consider organizational objectives as a basis for assisting in the process of developing the function. An effective human resources manager, must base all his decisions prioritizing the strategic plan of obtaining objectives and goals of a company, ensuring that there is the correct allocation of resources and trained and motivated personnel to increase business productivity and generate a climate positive organizational structure in order to achieve organizational goals.

7 0
3 years ago
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