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Dmitry_Shevchenko [17]
3 years ago
8

KeyLine, Inc., engages primarily in the manufacture of touch-sensitive LCD monitors. The company prices its products so that it

earns a 20 percent return on investment. Which pricing objective is the company following?
Business
1 answer:
Stels [109]3 years ago
8 0

The correct answer would be, KeyLine follows a target return objective that sets a specific level of profit as an objective.

The company prices its products so that it earns 20 percent return on investment. The pricing objective of Setting Specific level of profit as an objective is followed by the company.

Explanation:

When companies do their business, they set their objectives about the sales and profits or anything else about the business. Some companies make their pricing objectives that are flexible and some make their objectives as non flexible.

The company which defines that their return on investment should be 20 percent, it means the company has set its pricing strategy non flexible, and is using a specific level of profit as an objective or goal.

Learn more about Pricing Objectives at:

brainly.com/question/13522907

#LearnWithBrainly

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Two firms, Boomburgs and ABC X-Plode, both sell the same fireworks bundle. If they sell their fireworks at the manufacturer's su
Alex_Xolod [135]

1. The profit for ABC X-Plode when both firms charge MSRP is $1,000.

Units ABC X-Plode will sell = 100 units

Profit per unit = $10 ($20 - $10)

Total profit = $1,000 ($10 x 100)

2. The profit for ABC X-Plode when it charges MSRP, but Boomburgs charges below MSRP is $500.

Units ABC X-Plode will sell = 50 units

Profit per unit = $10 ($20 - $10)

Total profit = $500 ($10 x 50)

3. The profit for ABC X-Plode when it charges below MSRP, but Boomburgs charges MSRP is $350.

Units ABC X-Plode will sell = 175 units

Profit per unit = $2 ($12 - $10)

Total profit = $350 ($2 x 175)

4. The profit for ABC X-Plode when both firms charge below MSRP is $250.

Units ABC X-Plode will sell = 125 units

Profit per unit = $2 ($12 - $10)

Total profit = $250 ($2 x 125)

Data and Calculations:

Cost per unit = $10

Quantity sold at MSRP = 100 units

Sales units below MSRP:

One firm sells = 175 units

Second firm sells = 50 units

Sales units for each firm when they sell below MSRP = 125 units

Let:

Price at MSRP = $20

Price Below MSRP = $12

Learn more: brainly.com/question/17141668

3 0
3 years ago
19. The usefulness of a product to consumers is referred to as product:
uranmaximum [27]

Answer:

The usefulness benefits that a consumer receives from buying and using products or services is called utility... so it's B).                                   ♡ hope this helps ♡

4 0
3 years ago
Read 2 more answers
The demand and supply functions for basic cable TV in the local market are given as: Calculate the consumer and producer surplus
lana [24]

Answer: Hello your question is poorly written attached below is the complete question

answer:

a) Cs = 800,000 ,  Ps = 1,500,000

b) Cs = 1437500,  Ps = 525,000

Explanation:

Demand function ( Qd ) = 200,000 - 4000 P

supply function ( Qs ) = 20,000 + 2000 P

at equilibrium :  200,000 - 4000P = 20,000 + 2000P

therefore ; P = 180,000 / 6000 = 30

Q = 20,000 + 2000 ( 30 ) = 80,000

<u>a) Determine consumer and producer surplus in the market</u>

consumer surplus ( Cs ) This is the area above the price and below the demand curve  = 1/2 * ( 50 - 30 ) 80,000 = 800,000

producer surplus ( Ps ) This is the area above supply and below price

= 30 * ( 80,000 ) -  1/2 (80,000 - 20,000 ) (30)

= 1,500,000

<u>b) Determine the new levels of consumer and producer surplus with a price ceiling of $15 </u>

Pc (ceiling price ) = $15

Qd = 200,000 - 4000 ( 15 )  = 140,000

Qs = 20,000 + 2000 ( 15 ) = 50,000

∴ New consumer surplus = area ( a , Pc, b, d )

= ( 30 - 15 ) (50,000) + 1/2(50-30) (80,000) - 1/2 (80,000 - 50,000 ) (37.5 - 30)

   = 1437500

New producer surplus = area ( Pc , b, e 0 )

= ( 15 ) ( 50000) - 1/2 ( 50,000 - 20,000 ) (15)

= 525,000

7 0
3 years ago
Lee is considering buying one of two newly-issued bonds. Bond A is a twenty-year, 7.5% coupon bond that is non-callable. Bond B
vova2212 [387]

Answer:

Multiple choices below are missing:

A) purchase Bond A

B) purchase Bond B

C) purchase neither A nor B at this time

D) negotiate a higher rate on Bond A

The correct option is A,purchase bond A.

Explanation:

By purchasing Bond A,Lee is assured interest payment of 7.5% for a period of twenty years,hence the issuer cannot call the bond if interest rate drops by 2% in order to issue a lower interest-bearing bond which would be cheaper cost-wise.

However, if Lee purchases Bond B with current coupon of 8.25%,the interest is only guaranteed for a period of two years,since the issuer has the prerogative of calling back the bond after two years should interest fall in order to issue another bond that commands lower interest rate.

6 0
3 years ago
Soda and pizza are complements because they are often enjoyed together. When the price of soda rises, what happens to the supply
almond37 [142]

Explanation:

In the case of the complements goods, if the price of the soda rises, the demand would be decreased and the supply would rises. Since the soda and pizza are complementary goods so the impact of one good would be the same for another good also

Moreover, we also know that the price and the demand has an inverse relationship but the price and the supply has a direct relationship

6 0
3 years ago
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