Answer:
method 2 should be selected
Explanation:
The computation is shown below:
For Method 1
Value = $740,000 + $190,000 ÷ 1.14 + $190,000 ÷ 1.14^2 + $190,000 ÷ 1.14^3 - $135,000 ÷ 1.14^3
= $1,089,988.93
For Method 2
Value = $870,000 + $135,000 ÷ 1.14 + $135,000 ÷ 1.14^2 + $135,000 ÷ 1.14^3 - $170,000 × 1.37 ÷ 1.14^3
= $1,026,219.458
As we can see that in the method 2 there is a less cost as compared with method 1
So, method 2 should be selected
Answer:
Ordinary loss $15,000
Ordinary gain $6,000
Explanation:
Ordinary loss = $45,000-$30,000
= $15,000
Ordinary gain =$158,000-$152,000
= $6,000
Therefore the tax result to Cassie for this transaction is Ordinary loss of $15,000 and Ordinary gain of $6,000.
Answer:
b) $132,100 decrease
Explanation:
The impact on operating income is presented below:
Sales for the year $1,050,000
Less: Variable cost -$860,000
Contribution margin $190,000
Less: fixed cost ($193,000 × 30%) -$57,900
Net operating income $132,100
We simply applied the above equation to find out the net operating income by considering the 30% of fixed cost elimination
So it would show the decrement of $132,100
Answer:
Option A is correct,price discrimination
Explanation:
Price discrimination is charging different customers different prices in the same or different markets.
There are laws that frown against price discrimination in order to ensure fairness in business dealings and to ensure the activities of price discriminator does have negative effects on consumers or businesses that rely on the price discriminator for inputs.
A typical example of price discrimination is financial aid which is common with online courses,where certain people due to their peculiarities are offered financial assistance in their bid to study that is available to some other students.
Answer:
In the explanation there are points of view of why every aspect is effective when it comes to influence the demand of a good.
Explanation:
First of all, the pricing of the product will influence the demand by increasing it or decreasing it. It will depend on the type of good, if it is inferior or luxury and also in the prices of the substitutes of the product. So having a good pricing strategy according to the ones of the competitors will always give good results.
Secondly, the advertising and promotion strategy will also influence the demand of the product by increasing it in the case that the marketing campaign works well because it will caught the consumers attention, or it could also decrease the demand if the advertising is bad or if it reflects something bad from the brand.
To continue, the backlogs or reservations will affect the demand by increasing thanks to the fact that the consumers will feel safe by having it secure that they will obtain the product so that it a thumbs up.
Finally, the development of complementary offerings will affect the demand of the product by increasing it in the case that those other offerings are good enough to persuade the customer to buy all together and that will cause the sales to rise.