Answer:
Big buy must sell at large at a smaller price which will give tough time to Radio Shack and this is the threat that RadioShack don't want to bear.
Explanation:
Best Buy will choose large quantity because it helps in satisfying the needs of public at large at a lower price. This will force RadioShack to lower its price which will result in losses and this fear of losses will act as a enterance deterent. Though the profit on this strategy is lower but it will safeguard future revenues as RadioShack will not enter the market or get defeated very quickly.
Answer:
$35,000
Explanation:
Data provided in the question:
Accounts Receivable at the start of the year = $6,000
Accounts Receivable at the end of the year = $9,000
Revenues for the period = $38,000
Now,
cash collected from the customers
= Beginning balance + Revenue for the year - Ending balance of account receivable
= $6,000 + $38,000 - $9,000
= $35,000
