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professor190 [17]
3 years ago
9

During the year, Sophie (a self-employed marketing consultant) went from Omaha to Lima (Peru) on business. She spent four days o

n business, two days on travel, and four days on vacation. Disregarding the vacation costs, Sophie's expenses are: Air fare $3,000 Lodging 800 Meals 600 Entertainment 400 Sophie's deductible expenses are:
a. $4,300.
b. $2,900
c. $2,800.
d. $2,500.
e. None of these.
Business
1 answer:
baherus [9]3 years ago
4 0

Answer:

e. None of these.

Explanation:

The deductible expenses are expenses that are wholly, necessarily and exclusively for business purpose. This excludes the entertainment cost which is the only avoidable cost in the classes of cost given.

Hence, Sophie's deductible expenses are

= $3,000 + $800 + $600

= $4,400

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. What are the requirements for successful price discrimination? Does this type of dry cleaning qualify?
gayaneshka [121]

Answer:

Q1.

Requirements for the successful price discrimination

The following conditions must be met for price discrimination to be successful:

1.Firms must be able to control supply. I.e, there should be regulation on supply of products to avoid surplus which will force the price down

2.Firms must prevent resale of products from one buyer to another.

3.There must be a difference in price elasticities in the different markets for the product.

Yes, Dry Cleaning qualifies for price discrimination because it may be on first come first serve bases. Meanwhile, when the client needs the service urgently, the price for same service may increase which results in price discrimination.

Q2.

Other examples of price discrimination

Example of price discrimination are

1. The cost of movie tickets in a cinema: Prices at one theater are different for children, adults, and seniors. Also, the price may also vary due to preferential treatment given to VIP to watch same movie with other. Some cinema houses also give less privilege people or people with special needs such as albinos lesser prices. The prices of each ticket can also vary based on the day and chosen show time. Ticket prices also vary depending on the portion of the country as well.

2. Industries use price discrimination as a way to increase revenue. It is possible for some industries to offer retailers different prices based solely on the volume of products purchased. Price discrimination can also be based on age, location, desire for the product, and customer wage.

3.Airline travel and time of departure: Airlines charge different prices depending on the season, time of the flight and day of the week. During the peak holiday season, the prices will be higher because demand is greater and more inelastic. Airplanes also offer numerous ways to charge different prices for privileges like choosing a seat early or priority check-in. These perks are a way of extracting higher prices from those who want to pay for extras.

4.Quantity Purchased: Many sellers offer quantity discounts for bulk purchases as a way to get buyers to buy more.

Q3.

It is best left to the market to determine the price because some businesses are seasonal (i.e they are best sold based on season to season) example of such is packaging drinking water during raining season human water consumption is less because the environment is highly humid and people tends to consume lesser water. However, during dry season the sales peaked since there is much need to hydrate the system for healthy functioning of the body. So, if such business is to be regulated, the manufacturer may run at loss.

Women Pays more due to gender pricing because women clothes and hair generally take more time to work with.

8 0
3 years ago
ABC Company sold the rights to use one of their patented processes that will result in them receiving cash payments of $10,000 a
BigorU [14]

Answer:

$77,217

$11,289

Explanation:

Fist we will calculate the present value of $10,000 payment

A fix Payment for a specified period of time is called annuity. The discounting of these payment on a specified rate is known as present value of annuity. The value of the annuity is also determined by the present value of annuity payment.

Formula for Present value of annuity is as follow

PV of annuity = P x [ ( 1- ( 1+ r )^-n ) / r ]

Where

P = Annual payment = $10,000

r = rate of return = 10% / 2  = 5%

n = number of period = 5 years x 2 semiannual payments per year = 10 payments

PV of annuity = $10,000 x [ ( 1- ( 1+ 0.05 )^-10 ) / 0.05 ]

PV of Annuity = $77,217

Now we will use the discounting method to calculate the present value of lump sum payment of $20,000

Present value = Future value x Present value factor

PV = FV x ( 1 + r )^-n

PV = $20,000 x ( 1 + 0.1 )^-6

PV = $11,289

6 0
3 years ago
What is the difference between a national bank and a state bank?
Daniel [21]
All national banks must be members of the Federal Reserve System, while state banks can join if they wish  
3 0
3 years ago
How does Apple advertise their Iphone 11 and become successful? It has to be a judgement on how successful they were.
crimeas [40]

Well, through commercials, but they were mainly successful because everyone (almost) knows and trusts Apple, so when the latest product is released, everyone flocks to it because it's new, cool, sleek, and awesome.

They also do partnerships with Verizon and Sprint or whatever.

3 0
2 years ago
Read 2 more answers
Modern machinery encouraged businesses to move out of homes and workshops to factories. True False
Gnoma [55]
False....Get a A lol your welcome
5 0
3 years ago
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