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nataly862011 [7]
3 years ago
9

When you decide to go and have a dinner with your friends in a world class hotel such as the Golden Tulip or La Pleasure Beach,

perhaps you would be horrified by the high price you would have to pay for a bottle of soft drink such as Coca Cola or Pepsi Cola or wine or even bottled water. Perhaps you begin to ponder why the same commodity that you can get at a supermarket at one tenth the hotel price is going for such an astronomical price at the hotel. Of course, such facilities will have a warning such “you are not allowed to bring in your own food or drinks” posted at appropriate places in the facility for the attention of customers.In another scenario, you enter a designer shop to buy clothes with a designer label for a friend on their birthday or on Valentine day and you reckon the clothes are so much expensive compared to similar own brand clothes from a clothing or chain store, even though they may cost a similar amount to produce. Using your knowledge in basic economics, especially of the concept of demand and supply, attributes of a competitive market and price elasticity of demand, briefly discuss the following:
A. Why may a hotel charge such very high prices for wine, soft drinks or even bottled water and yet quite reasonable prices for food and still get away with such high prices? B. Why are designer shops able to price their clothes so very expensive and yet still get clients even though similar clothes that are available in a supermarket chain shops cost pretty much less?
Business
1 answer:
bezimeni [28]3 years ago
5 0

Answer:

A. Price makers

B. Brand name

Explanation:

A. The hotels charge very high prices for wine and soft drinks because they are not price takers. They do not consider the price prevailing in the market for the products they are offering to the customers. They are price makers and select to charge the price they want to maintain their current hospitality. It their perception that wine and soft drinks are part of luxury. The food is an essential and people are not allowed to bring outside food in the hotel so they will buy it but when they will consume food they will also require the drinks as a part of their meal.

B. The people in today's world are so much brand conscious. They will pay for a name tag so they will be regarded for their high status in the society despite of low quality products. The ease of shopping at the branded stores is another reason for their high sales.

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Answer:

$65,300

Explanation:

Ivanhoe's income tax expense = deferred tax liability 2021 - deferred tax liability 2020 + current tax expense 2020 = $42,800 - $26,800 + $49,300 = $65,300

A deferred  tax liability occurs when a corporation's income statement shows a certain amount following US GAAP, but the tax rules used by the IRS determine a different amount.

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3 years ago
MG Lighting had sales of 500 units at $100 per unit last year. The marketing manager projects a 15 percent decrease in unit volu
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Answer:

The answer is: Projected net sales for this year are $45,254

Explanation:

The current total sales for MG Lighting are $50,000 (= 500 units x $100 per unit).

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Due to the price increase, the number of units sold will decrease by 15%, to a total of 425 units.

MG Lighting total sales will be $46,750. Approximately 3.2% of the total sales will be returned (equivalent to $1,496).

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6 0
3 years ago
Predetermined Overhead Rate, Application of Overhead to Jobs, Job Cost, Unit Cost On August 1, Cairle Company's work-in-process
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Answer:

Cairle Company

1. The predetermined overhead rate based on direct labor cost is:

= 75% of direct labor cost.

2. August 31 Ending Balances:

Job 70 $7,475  

Job 71 $7,960

Job 72 $9,825

Job 73 $8,150  

Job 74 $1,350

Job 75 $2,065

Job 76 $384

3. Ending balance of Work in Process, August 31:

= $9,694

4. The cost of goods sold for August = $11,890

5. Sales revenue for August = $14,268

Explanation:

a) Data and Calculations:

Work in process inventory on August 1:

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Direct materials     $1,600  $2,000     $850

Direct labor              1,900     1,300       900

Applied overhead    1,425       975       675

Direct materials       $800   $1,235 $3,550 $5,000   $300     $560     $80

Direct labor              1,000     1,400   2,200     1,800     600       860      172

Applied overhead      750     1,050    1,650     1,350     450       645      129

Total costs            $7,475  $7,960 $9,825   $8,150 $1,350 $2,065   $384

Work in Process:

Job 71 $7,960

Job 74   1,350

Job 76     384

Total  $9,694

Cost of goods sold:

Job 72 $9,825

Job 75 $2,065

Total    $11,890

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4 0
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Answer:

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Use Following Formula to calculate the nominal Interest rate

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