Answer:
Decreases demand.
Explanation:
If there are a lot of competitors, there will be less demand for each individual company's product. For example, if you own the only restaurant in town everyone will come to eat there. However if there are 100 restaurants (increased competition) then fewer people will come to your place because they have so many other choices.
<span>The supplier may feel that revealing cost information to buyers may put them at a disadvantage because it would hurt their pricing strategy, they would be better of withholding the info to sell at a higher price or more convenient manner. The supplier may also not fully understand the cost information, so he or she may not want to give the buyer false information.</span>
Answer:
Increase in income from Operations = $72,000
Explanation:
Current cost of purchasing the inventory = $5 per unit.
Purchase price if bought from Division 6 = $3.20
Net benefit on each unit = $5 - $3.20 = $1.80
Number of units purchased = 40,000
Net savings in Expense of purchase of raw material, which will result in increase in income from operation's by = 40,000
$1.80
= $72,000.00
The present value of a dollar would be calculated as -
1 dollar X Present value factor of $ 1 @ 5 % for three years.
Present value factor of $ 1 @ 5 % for three years = 0.8638
Present value of $ 1 after 3 years = $ 1 X 0.8638 = $ 0.8638