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Rudik [331]
3 years ago
11

Holly’s Candle Shop sells scented candles. The shop offers hundreds of different types of candles, but they are all priced at ei

ther $10, $8, or $6.
In this case, Holly’s Candle Shop appears to be using:

A) price negotiating.
B) penetration pricing.
C) price lining.
D) odd-even pricing.
E) leader pricing.
Business
1 answer:
ANTONII [103]3 years ago
7 0

Answer:

C) price lining

Explanation:

Based on the information provided within the question it can be said that Holly’s Candle Shop appears to be using price lining. This refers to a business decision in which a range of products from the same product line are priced differently depending on the difference in quality. Which is most likely the case in Holly's store since she sells only candles but the higher quality candles are priced at $10 while the lowest quality ones are priced at $6.

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Ellie and Linda are equal owners in Otter Enterprises, a calendar year business. During the current year, Otter Enterprises has
ivolga24 [154]

Answer:

a and b

At the level of entity, otter pays no taxes either on the capital gains or on the business income.

Members will pay taxes on the capital gains and on business income.

c

The distribution of $25,000 each will be taxable in the hands of members as it is a dividend income.

Business Income and Capital gain of entity will have no impact for Linda and Ellie on their income tax returns.

Explanation:

a A partnership and b. An S corporation

At the level of entity, otter pays no taxes either on the capital gains or on the business income.

Members will pay taxes on the capital gains and on business income.

Taxable income of each member:

Ellie

Business Income is $55,000

Capital Gain is $7,500

Linda

Business Income is $55,000

Capital Gain is $7,500

Business Income = Gross Income - Operating expense

= $320,000 - $210,000

= $110,000

Note: Distribution of $25,000 will have no impact, as it only decrease their basis in the firm or company.

c. A C corporation

Ottor pays for the business income which amounts to $110,000 as well as the Capital gain of $15,000 at the applicable tax rates.

Members pays taxes only when they receive the distribution which is dividends.

The distribution of $25,000 each will be taxable in the hands of members as it is a dividend income.

Business Income and Capital gain of entity will have no impact for Linda and Ellie on their income tax returns.

7 0
3 years ago
Herman Company has three products in its ending inventory. Specific per unit data at the end of the year for each of the product
Troyanec [42]

Answer and Explanation:

Given:

                                 Product 1      Product 2         Product 3

Cost of product         $20                 $90                 $50

Selling price              $40                 $120                $70

Selling cost                $6                    $40                 $10

Computation:

                                          Product 1      Product 2         Product 3

Product Cost                         $20                 $90                 $50

N.R.V                              ($40-$6)=$34  ($120-$40)=$80  ($70-$10)=$60

Per Unit Inventory Value      $20                 $90                 $50

4 0
3 years ago
Using a company's cost of capital to evaluate a project is:
yaroslaw [1]

Answer: Option C  

             

Explanation: In simple words, cost of capital refers to the amount of return that the investor are expecting for tasking the risk of investing in the company. In other words, it is the amount the company has to offer in return to the investors for attaining the capital from the market.

Often the cost of capital is used to evaluate the profitability of the project, that is, if the return in project is higher than the cost of financing it should be taken by the company.

However there are other component while evaluating a project that is risks associated with it. Risk of every projects is different from the other and hence only those project should be evaluated on the basis of cost of capital that is similar to the company's average.

6 0
3 years ago
Arrange the steps for conflict resolution in proper sequence. Every individual involved in the conflict is encouraged to offer a
Lyrx [107]

-Individuals involved in the conflict is encouraged to come together.

-Every individual involved in the conflict expresses his or her opinion in an open manner.

-Every individual involved in the conflict is encouraged to offer a solution.  

-Discuss all the solutions and decide on the one that satisfies everyone.

8 0
3 years ago
Pension data for Coda Corporation included the following for the current calendar year: Service cost $ 112,000 PBO, January 1 81
spayn [35]

Answer:

Pension expense   $100,000

Explanation:

The computation of the pension expense for the year is shown below:

Service cost   $112,000

Interest cost $64,800 ($810,000 × 8%)  

Amortization of prior service cost $6,600

Amortization of net loss $2,600

Less: Expected return on plan assets -$86,000  ($860,000 × 10%)

Pension expense   $100,000

4 0
2 years ago
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