Price is important to managers because it has a substantial effect on a company's profitability and sustainability.
<h3>Why is pricing important?</h3>
The importance of pricing is traced to the fact that defines the value or worth of a product and the number of customers that demand the product.
For the consumer of products, price is a key factor that determines purchase decisions.
Thus, price is important to managers because it has a substantial effect on a company's profitability and sustainability.
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<h3>Question Completion:</h3>
Why is price important to managers?
Answer: $315,000 deferred tax asset
Explanation:
The amount that Dwyer should record as a net deferred tax asset or liability for the year ended December 31, 2007 will be calculated thus:
= ($2400000 – $1500000) × 35%
= $900000 × 35%
= $900000 × 35/100
= $900000 × 0.35
= $315000.
Therefore, the answer is $315,000 deferred tax asset
Answer:
Select the course of action
Explanation:
Because it’s the next step after collecting relevant information and evaluating each alternatives
Answer:
1.$35,000
2.$6,300,000
Explanation:
The computation of Unit sales to earn the target income and Sales amount at required profit is given below:-
a. Contribution per unit = Unit sale price - Unit variable cost
= $180 - $135
= $45
Unit sales at required profit = (Sales cost + Required cost) ÷ Contribution per unit
= ($562,500 + $1,012,500) ÷ $45
= $1,575,000 ÷ $45
= $35,000
b. Sales amount at required profit = Unit sales at required profit × Unit sale price
= $35,000 × $180
= $6,300,000
