2. A pizzeria raises its price from $3.00

The two most common pricing alternatives for products in the introduction stage of the product life cycle are:.

Anarel [89]

Answer:

penetration pricing and skimming pricing

3 0

2 years ago

What is the calculation used to determine the estimated annual interest amount a borrower will pay on a loan?

PIT_PIT [208]

The calculation used is mentioned as

$Annual\ Interest\ Amount\ =\frac{Loan\ balance\ X\ Interest\ Rate}{12}$ .

What is Annual Interest Amount?

An interest rate is written as an annual percentage rate. It factors in variables like monthly payments to determine what proportion of something like the principal you'll be paying yearly. APR is another term for the yearly rate of interest payable on investments that does not take into account the annual compounding of interest.
What you still owe just on mortgage principal is known as the loan balance. The loan balance is calculated as the difference here between initial mortgage balance and the sum of your principal payments. It's crucial to be aware of your loan's balance.
An interest rate indicates how expensive borrowing is or how lucrative saving is. Therefore, if you are a borrower, the interest rate refers to the amount you pay for borrowing money and is expressed as a percentage of the overall loan amount.

The calculation used is illustrated as :

$Annual\ Interest\ Amount\ =\frac{Loan\ balance\ X\ Interest\ Rate}{12}$

Learn more about Annual Interest Amount here:

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7 0

2 years ago

The use of collateral A. allows banks to charge higher interest rates on loans. B. makes it more costly for borrowers to take ad

Marat540 [252]

Answer:

The correct answer is B. The use of collateral makes it more costly for borrowers to take advantage of their asymmetric information.

Explanation:

In finance, a collateral or guarantee is a transferable asset or a surety, or even a promise of guarantee, used to cover the credit risk during financial transactions in the event that the borrower cannot meet his payment obligations.

A secured loan means a loan in which the borrower commits certain assets as a guarantee of credit, this the latter then becoming a partially secured debt for the creditor who made this loan.

The guarantee may consist of cash (pledge of cash account in retail bank, cash-collateral in investment bank) or securities.

Another form consists of a simple commitment: commitment by signature of a bank towards its client, promise of collateral or mortgage, letter of intent.

4 0

3 years ago

Exercise 21-11 Atlanta Company is preparing its manufacturing overhead budget for 2017. Relevant data consist of the following.

Marina CMI [18]

Answer:

Instructions are listed below

Explanation:

Giving the following information:

Units to be produced (by quarters): 10,400, 12,400, 14,200, 16,600. Direct labor: Time is 1.7 hours per unit.

Variable overhead costs per direct labor hour:

indirect materials $0.80;

indirect labor $1.30;

maintenance $0.70.

Fixed overhead costs per quarter: supervisory salaries $36,580; depreciation $17,620; and maintenance $13,700.

Manufacturing overhead budget:

First-quarter: (10400 units)

Indirect materials= (0.80*1.7)*10400= $14144

Indirect labor=(1.3*1.7)*10400= 22984

Maintenance= (0.70*1.7)*10400= 12376

Total variable cost= 49504

Fixed costs:

supervisory salaries= $36,580

depreciation= $17,620

maintenance= $13,700.

Total fixed cost= $67900

Total first quarter= $117,404

Second-quarter: (12400 units)

Indirect materials= (0.80*1.7)*12400 = $16864

Indirect labor=(1.3*1.7)*12400 = 27404

Maintenance= (0.70*1.7)*12400 = 14756

Total variable cost= 59024

Fixed costs:

Total fixed cost= $67900

Total cost second quarter= 126,924

Third-quarter: (14200 units)

Indirect materials= (0.80*1.7)*14200 = $19312

Indirect labor=(1.3*1.7)*14200 = 31382

Maintenance= (0.70*1.7)*14200 = 16898

Total variable cost= 67592

Fixed costs:

Total fixed cost= $67900

Total cost third quarter= 135492

Fourth quarter: (16600 units)

Indirect materials= (0.80*1.7)*16600 = $22576

Indirect labor=(1.3*1.7)*16600 = 36686

Maintenance= (0.70*1.7)*16600 = 19754

Total variable cost= 79016

Fixed costs:

Total fixed cost= $67900

Total cost fourth quarter= 146916

Total cost of the year= 117,404 + 126,924 + 135,492 + 146,916= $526,736

3 0

3 years ago

Merger and acquisition strategies:

Orlov [11]

Answer:

The correct answer is letter "E": are often driven by such strategic objectives as to expand a company's geographic coverage or extend its business into a new product categories.

Explanation:

A merger is a combination of two companies, usually by mutual agreement. Mergers are not exactly the same as acquisitions. In the <em>acquisition</em>, one company buys and subsumes another company, leaving only the purchaser in place. In most mergers, the two companies merge to form a completely new company.

Frequently, <em>mergers and acquisitions are conducted so that the operations of firms can be broaden and new opportunities can be taken advantage of in the new markets.</em>

4 0

3 years ago