Answer: b. second degree price discrimination
Since the school pays a different rate for the first million kilowatts consumed and a lower rate for any consumption over a million kilowatts, second degree price discrimination is at play.
When corporations or businesses sell the same product to different customers at different prices, with a view to maximize profits, price discrimination is said to occur.
There are three types of price discrimination -
First Degree price discrimination
Second Degree price discrimination
Third Degree price discrimination
First degree price discrimination occurs when the supplier sells the goods at a price the customer is willing to pay for the good.
Second Degree price discrimination occurs when the supplier establishes slabs for different quantities of goods sold. In this case, the supplier will offer a higher per unit cost for lower quantity of goods, and a lower per unit cost for a higher quantity of goods
Third degree price discrimination occurs when a firm is able to clearly divide its markets into segments. The products are positioned in each segment in a different manner.
Answer:
Within 2 years
Explanation:
1st year of Sam's business:
Operational expense = $30,500
Profit = $45,000
Business set up costs = $49,500
Overall business profit (Loss) = $(4,500)
2nd Year of Sam's business:
Since the profit will be increased by 5.5%, the new profit after operational expenses will be $45,000 + $(45,000 x 5.5%) = $47,475
Therefore, the overall profit = Last year's loss + This year's profit = $(-4,500+47,475) = $42,975
Therefore, he can achieve the overall profit within 2 years' of operation.
Answer:
C) will be the same for both absorption costing and variable costing
Explanation:
If the beginning and ending balance for Finished Goods Inventory is 0, that means that all the absorption costs have been assigned and all the fixed costs (for variable costing) have been assigned also. So whatever costing method you choose the valuation should be the same.
Recreational boaters travelling on such water should give a wide berth and keep away from the water areas where the hunters are carrying out their activities; the boaters should be safety conscious and alert. This is necessary in order to avoid accident.
