With prestige goods and services, a higher price may, but not always, result in a higher sales volume.
<h3>What do economists mean by prestige goods?</h3>
Numerous products and services have prestige value, elevating the standing of their owners or users. Such items are referred to be prestige (or status, or positional) goods. These prestige products include things like jewelry, designer apparel, expensive homes and vehicles, and lavish entertainment.
<h3>Why is the demand curve for prestige items different?</h3>
Prestige goods may actually see an increase in demand as a result of price increases since customers perceive them to be more value. The demand curve slopes upward in certain circumstances.
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Answer:
Make a List of Goals. Write down your goals and visualize how you will feel when you hit each one. ...
Work Out Every Day. ...
Make a Schedule and Stick to It. ...
Find Your “Whys” ...
Find Some Mentors. ...
Stop Comparing Yourself With Other People. ...
Take Care of Yourself and Think Positively.
Explanation:
Answer:
1. Damaged or obsolete goods are not counted in inventory if they cannot be sold.
2. If these can be sold… Cost should be reduced to Net Realizable Value
Explanation:
The law relating to the valuation of inventory is that ''inventory should be valued at lower of 'Cost' and 'Net Realizable Value'.
Therefore in the case of damaged or obsolete goods, they have to be eliminated from inventory, otherwise it will lead to overvaluation.
However in the case where these can be sold, They have to be valued at lower of 'cost' or 'salable value', implying that 'Cost' should be reduced to 'Net Realizable Value'
Answer:
6,250 units to break even.
Explanation:
Let's call x the number of units needed.
We know the sales price ($200/unit).
We know the cost of production ($120/unit)
And to break even, the Abner Corporation need to cover their fixed costs of $500,000.
That can be modeled like this:
200x - 120x = 500000 (sales price - cost price to get 500K)
we simplify and solve:
80x = 500000 (making $80 profit for each unit)
x = 6,250 units
Abner Corp needs to sell at 6,250 units to break even.
Since it is selling 7,500 units, they are making a profid.
