All categories

3 years ago

In general, prices should not be based on costs because

Business

1 answer:

SOVA2 [1]3 years ago

5 0

Answer:

C. consumers make their purchase decisions based on perceived value.

Explanation:

Consumer perceived value is the benefit of a product that the consumer receives by buying any specific goods or services. Perceived value is the satisfaction level of consumer that customer look in the product, rather than just paying for the product, therefore, the company need to work and develop their brand and value in the market. Cost does not define the value of the product, rather it is a satisfactory level of consumer that defines the value and price of product. Example; Customer does not pay for the software, however, they pay for the solution.

You might be interested in

Blue Ridge Crafters is a co-operative that distributes traditional household furnishings, such as home-spun textiles, hand-throw

Harman [31]

Answer:

C) Horizontal growth strategy.

Explanation:

In the given situation, blue ridge would added non related products for the customers who already purchased it from them. Also it shows the concept of one-stop shop i.e. catering should be provided to all rounds requirement for the customers who visited them

Therefore as per the given scenario, the option c is correct

And, the same would be considered

5 0

3 years ago

Displays more information on the spreadsheet?

nignag [31]

When you ask a question like this, you have to include a picture of what you are talking about. I'll walk you through the process. When you first start asking a question there is an option for a little paperclip on the bottom of the question box. Click on that and then select the file (the photo is considered a file by the computer) then type in what the question is and simple hit ask question. Now it will post the picture along with your question.

Hope this helps,

Miri

6 0

3 years ago

Tiny went back to his office after the meeting and began to crunch the numbers on the rapid inflator. At a price of $10 per unit

Artist 52 [7]

Solution and Explanation:

Part A - Inflatable divisions's Current Return on Investment = Yearly Earnings / Investment Cost * 100

There the Inflatable Division is Currently Earning $ 250,000 annually from an Asset base of $ 1,250,000

Therefore, ROI = $250000 / 1250000 * 100=20 \%$

Part B - Let the maximum variable cost be X.

Given that - 1. Selling Price per Unit = $10 , 2. No of Units to be produced = 40000 , 3. Annual Fixed Cost = $ 140000

Therefore , ROI = Current Earning + New Earning / Current Assets + New Assets

20% = $250000+[(10-\mathrm{X}) * 40000-\underline{140000}] / 1250000+100000$

Solve for X getting, X = 6

Therefore maximum variable cost it can incur without change in current ROI is $ 6 per unit

Resulting Contribution Margin per Unit = SP - VC = $10 minus $6 = $4 per unit

part C - Minimum Transfer Lightning division Should charge

Given Information - Capacity of Lightning division is 150000 units and Utilized capacity is 135000 units. Therefore Spare capacity is 15000 units .Also Market Price of Product of Lightning division is $ 5 and Variable cost is $3 per unit.

So for the First 15000 units of Requirement of Inflatable division - Transfer Price should be Variable cost i.e $ 3 per unit because Lightning division has spare capacity in this.

For the next 25000 units of requirement of Inflatable division - Transfer Price should be Market Price i.e $ 5 per unit as Lightning division has to reduce is external sale.

Therefore Minimum TP = 1 $5000 * 3+25000 * 5 / 40000=\$ 4.25$ per Unit

Part D - No, Here Tiny offers to transfer $4 ( $6 - $2 ) per unit to Lightning division. However the minimum TP Lightning should get is 4.25 per unit and if less than this TP is offered by Tiny it will lead to loss in the Lightning Division.

3 0

3 years ago

What theory argues that free trade is beneficial, but that differences in factor endowments, not productivity, determine the pat

Mice21 [21]

Answer:

The correct answer is letter "A": Heckscher-Ohlin.

Explanation:

Named after Swedish economists Eli Heckscher (1879-1952) and Bertil Ohlin (1899-1979), the Heckscher–Ohlin theory states that countries should focus their efforts on producing and exporting those goods they are good at manufacturing and they should import the goods they struggle in making. The concept is based on both the productivity and non-productivity of nations and their best bequests.

8 0

3 years ago

Under project planning activities, defining what leads to successful completion is a part of quizlet

marissa [1.9K]

Under project planning activities, defining what leads to successful completion is a part of DURATION.

Duration is the sum of the workdays, hours, or weeks necessary to finish a job. The length is determined by the resources' capability and availability. The amount of effort required to finish a task, or the actual time spent working on the project, is measured in person hours.

<h3>How is project duration calculated?</h3>

We must know how to estimate duration while creating a timetable. We might simply compute our projected project length by taking the number of effort hours, divided by the number of resources, assuming everyone worked eight hours each day and was completely productive throughout all eight hours.

To know more about duration in a project, check the given links.

brainly.com/question/11375376

#SPJ4

3 0

2 years ago