Answer:
Sell before assembly, The company will be better off by $4 Per Unit
Explanation:
Calculation to determine what decision should Vaughn make
PROFIT BEFORE ASSEMBLY
Profit = Sale price - Cost price
Profit= $51 - $24
Profit= $27 Per Unit
PROFIT AFTER ASSEMBLY
First step is calculate the Cost of Assembled Product
Cost of Assembled Product =$24 + $14
Cost of Assembled Product= $38 Per Unit
Now let determine the profit
Profit = Sale price - Cost price
Profit= $61 - $38
Profit = $23 Per Unit
Now let Determine what decision should Vaughn make
Hence, the Profit by selling assembled product is LOWER than selling the Unassembled product by :
$27 Per Unit - $23 Per Unit
= $4 Per Unit
Therefore the decision that Vaughn should make is: Sell before assembly, The company will be better off by $4 Per Unit
Merchandise planning is a method of selecting, managing, purchasing, displaying and pricing the products in a manner that they bring in maximum returns on investment.
Overall merchandise planning merchandise planning is about striving to make the right product available, at the right time, in the right place, in the right quantities, and at the right price.
<span>This situation is called a modified rebuy. The buyer may want to modify the price or they may want to look at other options. They might choose a different provider to get the good or service from. This offers the buyer better options.</span>
Assessing how customers in the target market evaluate price is the <u><em>second </em></u>stage in the pricing process.
A company's pricing process is the amount it asks for its goods or services. As a result, the profitability of a business is directly related to the pricing decisions it makes. A product's pricing is determined by several variables, including its cost to produce, the intensity of competition, the state of the market, and the level of quality it offers. When determining the prices of its goods and services, a company should keep in mind the requirement to recover both the direct and indirect expenses associated with production and a reasonable profit. If the selling price of a product is below the company's operating expenses, the company will go bankrupt.
When setting prices for its wares, a company employs a variety of strategies and procedures. An efficient pricing strategy is one that maximises the surplus between the producer and the customer. A company's pricing plan should be practical, adaptable, and profitable.
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Answer:
Suppose the cross-price elasticity of demand between oranges and clementines is 4. Holding everything else constant, if the price of oranges increases, then the demand for clementines will _decrease_.
Explanation:
The term cross price elasticity tell the responsiveness of demand of one commodity against the price of other commodities. When the value is positive which is 4 in our question, the oranges and clemenities are substitute commodities, both can be replaced with one another. In this case, when price of A increase, the demand for B will decrease.
