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3 years ago

How does price discrimination help cover fixed costs?

1 answer:

3 0

For the case of a consumer with an inelastic demand curve, it is less costly to cater for them, hence reducing the production fixed cost. given that different customers will be charged differently for the same product, it is easy to cover for a low profit range.

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Observe the Sales Budget and determine which primary responsibility the managerial accountant uses todetermine which quarter gen

pantera1 [17]

Answer:

"Directing" seems to be the right response.

Explanation:

Directing seems to be the major concern of the financial analyst to ascertain whether the significant proportion obtained that much sales figures for every unit cost of production throughout addition to changing the marketing campaign.
Strategy formulation, trying to organize, staff numbers would not have any significance if the management function doesn't take place.

Therefore the method above is the right one.

4 0

2 years ago

On June 1, 2018, Blue Co. distributed to its common stockholders 180,000 outstanding common shares of its investment in Red, Inc

faltersainse [42]

Answer:

Blue Co. Shall report $396,000 as gain before income taxes on disposal of the stock.

Explanation:

Book value per share of Red Inc = $1.20 per share

As the value of share is revised just after the declaration but before distribution there will be gain on sale of investment.

Net gain = Sale price - Book value

= $3.40 - $1.20 per share = $2.2 per share

Total gain for the year end on June 30 will be

= $2.2 per share X 180,000 shares = $396,000 shares

Thus Blue Co. Shall report $396,000 as gain before income taxes on disposal of the stock.

8 0

2 years ago

What is the best advice for you to follow when writing a persuasive claim message?

svet-max [94.6K]

It must be debatable. Hope this helps

3 0

3 years ago

A corporation is considering expanding operations to meet growing demand. With the capital expansion, the current accounts are e

andre [41]

Answer:

B) a decrease of $40,000

Explanation:

As we Know Working capital is the the net or current assets and current liabilities.

Increase in Current Assets

Cash $20,000

Accounts receivable $40,000

Inventories $60,000

Total Increase in CA $120,000

Increase in Current Liabilities

Accounts payable $50,000

Accruals $10,000

Long-term debt $100,000

Total Increase in CA $160,000

Increase in Working Capital = Increase in Current Assets - Increase in Current Liabilities

Change in Working Capital = $120,000 - $160,000 = -$40,000

As current Liabilities increased more than the current assets, so the working capital will decrease by $40,000

6 0

3 years ago

What is the opportunity cost of an investment

Temka [501]

An opportunity cost of an investment is the difference between the return of an investment taken and the return of another investment that one had not taken. It is the forgone opportunity of an investment not taken or pursued. It is the amount of money one could have made had one chosen to pursue the other investment.

7 0

3 years ago