Answer:
B) $12,825
Explanation:
In order to calculate the worst case scenario of sales first we need to calculate the worst case for sales of units.
The Company estimates that 5,000 units will be sold with a 10 percent plus-or-minus range. So, let calculate the worst case for the sale of units, in this case being 90% of the 5,000 unit estimate. Calculate 90% of 5,000, and this gives us 4,500 units as the worst case scenario.
To calculate the the worst case scenario for price, lets use the $3.00 per unit estimated by the Company, and apply the same concept, however, taking into account that sales price has a 5 percent plus-or minus range. So we caclulate %95 of $3.00, and this gives us $2.85 as our worst case scenario for price.
Now, we take our worst case scenario for amount of units and price:
4,500 units x $2.85 = $12,825
$12,825 is the total dollar amount for the worst case scenario of this product.
Answer:
b. constant returns to scale because average total cost is constant as output rises.
Explanation:
The question has options. Below is the complete question.
<u>Complete Question</u>
In the long run a company that produces and sells kayaks incurs total costs of $15,000 when output is 30 kayaks and $20,000 when output is 40 kayaks. The kayak company exhibits
a. diseconomies of scale because total cost is rising as output rises.
b. constant returns to scale because average total cost is constant as output rises.
c. diseconomies of scale because average total cost is rising as output rises.
d. economies of scale because average total cost is falling as output rises.
The correct answer is explained below.
In the long run a company that produces and sells kayaks incurs total costs of $15,000 when output is 30 kayaks and $20,000 when output is 40 kayaks. The kayak company exhibits constant returns to scale because average total cost is constant as output rises.
Answer:
c. $4,025,200
Explanation:
The computation of the total cash receipts from sales and collections in April month is shown below:
= April sales × cash sales percentage + April sales × credit sales percentage × collection month percentage + March sales credit sales percentage × Following month collection percentage
= $4,000,000 ×30% + $4,000,000 × 70% × 40% + $4,200,000 × 70% × 58%
= $1,200,000 + $1,120,000 + $1,705,200
= $4,025,200
Since cash sales are 30% , so the credit sales would be 70%
With <u>predatory pricing</u>, a company deliberately sets a low price with the express idea of driving its competition out of business.
Predatory pricing is a pricing strategy, the usage of the method of undercutting on a bigger scale, wherein a dominant firm in an enterprise will intentionally reduce the fees of a service or product to loss-making stages within a short-time period.
Predatory pricing is the lowering of charges by a corporation specifically to put rival companies out of business. with the aid of doing away with the opposition, the enterprise edges closer to turning into a monopoly, a privileged position of marketplace dominance that might allow it to fix prices and stay away from the natural laws of supply and demand.
In a short time period, predatory pricing creates a buyer's marketplace, in which customers are able to “shop around” and generally attain goods at a decreased price. For agencies, profitability declines as competitors actively try and undercut every other's costs and divert visitors to their personal business.
Learn more about Predatory pricing here brainly.com/question/12751629
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Answer:
$8,770.00
Explanation:
In this question we use the present value formula i.e shown in the attachment below:
Data provided in the question
Future value = $0
Rate of interest = 0.48%
NPER = 4 years × 12 months = 48 months
PMT = $205
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after solving this, the answer would be $8,770.00
