<u>Answer:</u>Consumers are relatively insensitive to premium prices.
<u>Explanation:</u>
Premium pricing is generally done by the firms to prove that their products are competitive enough in the market. Also premium pricing denotes that the product has high value in the market. Companies fixing the prices know that the consumers will not investigate if it truly valuable.
The organisations also establish a brand name to prove that they are luxury brand. So the customers are also insensitive to the prices of those products. For example Apple phones, Rolex watches etc.
Answer:
The answer is $91,000
Explanation:
Solution
Given that:
Net Operating Income as per Variable Costing = $93,400
Less: Fixed manufacturing overhead released from Inventory (2300*$1)= $2300
Net Operating Income as per Absorption costing = $91,000
Hence Net operating income in absorption costing is $ 91,000
The difference in Net operating Income which is under the variable costing technique & Absorption costing method is due to treatment of Fixed manufacturing overhead.
Difference can be reconcile using following below:
Criteria Operating Income higher in
Ending Inventory is higher than beginning Inventory Absorption costing
Ending Inventory is lesser than beginning Inventory Variable costing
So,
The inventory reduced by 2,300 units; implies that Ending inventory is lesser than Beginning Inventory, the Net operating income higher in Variable costing.
Answer:
$70,000 loss
Explanation:
the carrying value at December 31, Year 1 = 5,000 shares x $60 per share = $300,000
the fair market value at December 31, Year 1 = 5,000 shares x $46 per share = $230,000
realized loss/gain = fair market value - carrying value = $230,000 - $300,000 = -$70,000 or $70,000 loss
<span>Circumstances that help Walmart succeed usually makes it difficult for little businesses to thrive. The absence of government regulation generally profits big businesses and is unfavorable to small businesses. This leads to the emergence of monopolies and the abolishment of little businesses, even if they are original and innovative. In theory; more government regulation (if fair and just) would help small businesses compete more fairly with big business.</span>