Maria recently put her house on the market at an asking price of $260,000. She realizes, however, that in order to sell the house, she may have to use price skimming
<h3>What is
price skimming?</h3>
Price skimming is a pricing strategy that a company can use when launching a new product or service.
Price skimming is commonly used for new technologies. DVD players are an excellent example of this. When DVD players first became available in the late 1990s, they could cost up to $1,000. If you do a quick search on Amazon, you'll find that a new DVD player costs only $33.
The pricing strategy will be influenced by the stage of the product's life cycle. The process of charging a relatively high price for a product is referred to as price skimming. When a product is new to the market, skimming is commonly used (in its introduction or growth phase)
To know more about price skimming follow the link:
brainly.com/question/24263055
#SPJ4
Answer:
A. maximizes the value of the firm.
Explanation:
Managers should select the capital structure that "A", maximizes the value of the firm.
He may select a capital structure with full debt or no debt, based on certain fact and conditions.
Capital Structure may result in Minimum taxes and generate Current level of Income but the most important is to maximize the value of the firm.
Answer:
The change in the revenue is $100,000
Explanation:
The quantity when the price is $1.50 is 60,000(1.50)-10,000=80,000. The revenue when the price for the price of $1.50 is 1.50*80,000 = 120,0000.
Now for the new price of $2.00, the quantity is 60,000(2)-10,000=110,000, and the revenue is 2*110,000=220.000.
With the revenues from when the price is $1.50 and $2.00, the change is the diference $220,000-$120,000=$100,000.
When the price increases from $1.50 to $2.00 the revenue increases $100.000
Answer:
Yankee Zoro
Break-even units 47000 188000
Explanation:
Break even for multiple products = Total fixed costs/ (weighted average selling price- weighted average variable cost)
weighted average selling price = ($295 * 20%) + ( $215 *80%) = 59+172=$231
Weighted average variable cost = ($160 * 20%) +( $140*80%)=32+112=$144
weighted average contribution = $231-$144 = $87
breakeven = $20,445,000/$87= 235000 units
for Yankee = 235000*20%= 47000
for Zoro = 235000*80%= 188000
