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LenaWriter [7]
3 years ago
10

To discourage competitive entry, a company can price its new product low, using penetration pricing. This pricing strategy also

helps to: reduce costs. increase profits. build customer loyalty. build unit volume. improve product quality.
Business
1 answer:
AlladinOne [14]3 years ago
7 0

Answer:

The answer is: build unit volume

Explanation:

When a company introduces a new product with a very low price (or even for free) using penetration marketing it is trying to attract new customers, discourage competition and build market share (build unit volume). Hopefully the new customers will like the product so when the company increases its price they will still buy it. For example, the first month I used Netflix it was free.  

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which will typically decrease with large number of units produced, fixed costs, total variable costs, fixed cost per unit, varab
Nady [450]

Answer:

fixed cost per unit,

Explanation:

Fixed cost is cost that does not vary with output. It remains constant regardless of the units of output produced. An example of fixed cost is rent.

fixed cost per unit = fixed cost / output

Let us assume that rent (fixed cost) is $500. When output is 1 unit,  fixed cost per unit = $500 / 1 = $500

when output is 2 units,  fixed cost per unit = $500 / 2 = $250

when output is 10 units ,  fixed cost per unit = $500 / 10 = $50

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Draw a supply curve, and assume it is the supply curve for processors. suppose the price of gold increases. gold is an input use
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Helping others who need help on the job is important, regardless of the cost to me.
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3 0
3 years ago
Banko Inc. manufactures sporting goods. The following information applies to a machine purchased on January 1, Year 1: Purchase
ioda

Answer: See Explanation

Explanation:

You didn't give the methods to use but let me use 2 main methods.

First, let's use the Straight line Depreciation. This will be:

= ($71000 + $3000 + $2000 - $3000) / 5

= $73000/5

= $14600

Year 1 Depreciation = $14600

Year 2 depreciation = $14600

Secondly, let's use the double declining method of Depreciation will be:

= 1/5 × 2

= 0.2 × 2

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Year 1 depreciation will be:

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= $30400

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= $45600 × 0.4

= $18240

7 0
3 years ago
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