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lesya [120]
3 years ago
15

BellStar Communications is a new provider of 3D satellite TV service. It offers an extremely low introductory price for the firs

t 12 months because it wants to attract new customers and quickly garner market share. Which pricing strategy is it​ using?
A.Price lining
B.Psychological pricing
C.Penetration pricing
D.Price skimming
E.Cost-oriented pricing
Business
1 answer:
Black_prince [1.1K]3 years ago
6 0

Answer: Option C

                       

Explanation: In simple words, penetration pricing refers to pricing strategy in which an organisation initially sets the prices of its product as to create market share and to build a customer base.

After achieving a certain amount of word of mouth and awareness in the eyes of customers, organisation increases its price for a certain marginal profit.

In the given case, Bell star is doing the same functions as explained above. Hence we can conclude that company is using market penetration.

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6 0
2 years ago
The following lots of a particular commodity were available for sale during the year: Beginning inventory 10 units at $30 First
irakobra [83]

Answer:

Fifo Ending Inventory = $ 690

Explanation:

The first in first out method implies that only the units at the end are left out in the ending inventory.                

Fifo Ending Inventory = $ 690

10 units from third purchase at $ 35= $ 350

10 units from second purchase at $ 34= $ 340

Total 20 units FIFo method = $ 690

Working

         

                                                                  Total Cost

Beginning inventory        10 units at $30           $ 300

First purchase                 25 units at $32            $ 800

Second purchase            30 units at $34            $ 1020

Third purchase                10 units at $35            $ 350

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