The given statement about cost is a true statement as cost becomes most obvious when more money must be spent on one thing, leaving less available for another.
<h3>What is the cost?</h3>
A cost is often the value of the money that was expended during the production or delivery of something or service and is now unavailable for use.
Manufacturing, research, retail, and accountancy all make use of this idea. In business transactions, the cost may be an acquisition cost, in which case the amount of money spent to acquire it is considered to be part of the cost.
Finally, cost becomes most apparent when more money spent on one thing leaves less money for another. This corresponds to a true statement.
As a result, opportunity cost describes a decision we must make in order to make another one.
You have $50, for instance, which you may spend on a date with your partner or on your preferred game. The inability to purchase the game is your opportunity cost if you decide to utilize that money to take your partner out on a date.
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Cost of Equity as per CAPM = rf +beta*(rm-rf)
rf = risk free rate = 2.5%
beta =1.12
rm-rf = market risk premium = 6.8%
Cost of equity = 2.5+ 1.12*6.8 = 10.116% = 10.12%
Answer:
The correct answer is $780.
Explanation:
As per the data given in the question,
Markup percentage = 30%
Total cost = $270 + $135 + $90 +$105
= $600
We can calculate the price by using following formula:
Price = Total cost + (Total cost × markup %)
by putting the value, we get
Price = $600 + ( $600 × 30% )
= $600 + $180
= $780.
Hence, the price that company charge will be $780.
Answer: whether customers of the product would switch to other substitute products marketed by the same firm.
Explanation:
Customers regular move from one good to another or from one good to it's substitutes in a process called Customer Migration.
There are various reasons for this such as affordability, change in technology, trends and the like.
When a company contemplates ending a product line and decides to study customer migration patterns, they are checking to see what the customer will switch to when the product is deleted. If they make substitutes to the product to be deleted, they will be checking to see if the customers will switch to these substitutes if the product line is ended.