<u>A. By conducting a focus group before launching the product</u>
Pricing in the business world is very delicate. People will always tend to go for the cheapest product if they aren't loyal to a specific brand. So, when you are starting a business, it is extremely important to focus on pricing. Your prices have to be low enough for people to buy them, but high enough to break even and make a profit.
A focus group would have assisted Kalim in finding the best price for his product. By conducting this, the group would have told him exactly what they would pay for something like his product. However, the damage done is not permanent. He should now lower the prices or conduct a focus group to find out the best price for his food.
Answer:
The Sharpe ratios for the market portfolio and portfolio A is 0.1677 and 0.2 respectively
Explanation:
The computation of the Sharpe ratio is shown below:
= (Expected Rate of Return - Risk-free rate of return) ÷ (Standard Deviation)
For Market portfolio, it would be
= (12.2% - 7%) ÷ (31%)
= 5.2% ÷ 31%
= 0.1677
For portfolio A, it would be
= (11% - 7%) ÷ (20%)
= 4% ÷ 20%
= 0.20
Simply we apply the Sharpe ratio formula in which the risk-free rate of return is deducted from the expected return and the same is divided by the Standard Deviation
Answer:
$10,241.53
Explanation:
Using the activity-based costing system, Overhead cost for Product K91B would be?
Setting up batches 89 batches x $59.56= $5300.84
Processing customer orders 39 orders x $72.96= $2,845.44
Assembling products 493 hours x $4.25= $2,095.25
Total Overhead cost $10,241.53
