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3 years ago

Many theme parks charge an entrance fee and a per-ride fee equal to zero. This is an example of

Business

1 answer:

nataly862011 [7]3 years ago

6 0

Answer:

two part pricing

Explanation:

A Two-part tariff (TPT) is a type of price gouging in which the price of a good or service consists of 2 sections-a rub-sum of the per-unit fee. Such a selling strategy generally occurs except in part or entirely monopolistic industries. It is built to allow the company to absorb more surplus value in a non-discriminatory pricing framework than it ever has before.

Two-part tariffs in open markets can also occur when customers are unsure regarding their final requirement. Consumers of fitness centers, for instance, may be unsure regarding their degree of potential dedication to an exercise routine.

Read more about VAT on:

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8 0

1 year ago

2. An electronics manufacturing firm is currently manufacturing resistors that have a variable cost of $0.50 per unit and a sell

SCORPION-xisa [38]

Answer:

a. Should the firm buy the new equipment?

no, because operating profit will decrease

b. What is the minimum price the company would have to charge in order for the new equipment to be worth purchasing (assuming the higher or lower price doesn’t affect the 500,000 unit volume)?

$1.02 per unit

Explanation:

contribution margin per unit = $0.50

total units sold = 300,000

fixed costs = $100,000

operating income = (300,000 x $0.50) - $100,000 = $50,000

if the firm improves the quality of their products:

contribution margin per unit = $0.40

total units sold = 500,000

fixed costs = $160,000

operating income = (500,000 x $0.40) - $160,000 = $40,000

if you want to keep operating income at $50,000 then minimum sales price should be:

500,000 = $210,000 / contribution margin

contribution margin = $210,000 / 500,000 = $0.42

sales price = contribution margin + variable costs = $0.42 + $0.60 = $1.02 per unit

5 0

3 years ago

In florida, an element of an insurance transaction would be

xxMikexx [17]

<span>giving out an insurance contract
Such contract when issued are represented and controlled by the Florida Insurance Policy Code. These agreements must have certain arrangements in them as required by Florida law. The standard procedure when an insurance contract will be issue should have the following items: the agreement clause,grace period,secondary notice,misstatement of age, strategy loan,reinstatement, intrigue payable on death assert</span>

8 0

3 years ago

Which of the following statements is true? a. The production budget is not converted into dollars. b. The sales budget includes

Svetllana [295]

Answer:

e. All of these choices are correct.

Explanation:

Note:

Statement a. about production budget is correct as the production budget only estimates number of units to be produced, in quantity and not in dollars and therefore is not converted into dollars.

Statement b. about sales budget is also correct as it shows the quantity in units and also in value.

Statement c. about overhead budget is also correct as the budget segregates variable and fixed overheads properly.

Statement d. about labor budget is correct, as in this budget an average rate is used for calculating the expenses.

Therefore all of the above is correct.

8 0

3 years ago

Which common saying best captures the concept of incentives (specifically, positive and negative incentives), which is one of th

lesantik [10]

Answer:

If the carrot doesn't work, try the stick.

Explanation:

This phrase clearly describes how advertising and promotions work:

If the carrot doesn't work: the tempting carrot refers to advertisement, and the doesn't work part refers to advertisement that is not able to change consumer habits and increase sales.

Try the stick refers to offering promotions or positive incentives like discounts or larger packs.

Another example would be the penalty imposed on individuals that refused to purchase health care insurance (eliminated in 2018). The carrot were the benefits obtained by having health insurance and the stick was the negative incentive (or penalty) imposed as a fine for those who didn't purchase health insurance.

6 0

3 years ago