Answer:
a) What is the expected transaction price with variable consideration estimated as the expected value?
- original cost $5,800 if job is finished in one month (15% probability)
- bonus price for finishing 2 weeks earlier $5,800 x 1.25 = $7,250 (25% probability)
- bonus price for finishing 1 week earlier $5,800 x 1.15 = $6,670 (60% probability)
expected transaction price = ($5,800 x 15%) + ($7,250 x 25%) + ($6,670 x 60%) = $6,684.50
b) What is the expected transaction price with variable consideration as the most likely amount?
$6,670, since it has a 60% probability
Answer:
Modified Rebuy
Explanation:
Modified rebuying is the process whereby an individual or an organization makes a purchase that have been previously purchased but this times makes changes to some elements different from the previous purchase like change of suppliers, terms, price and so on. In this case, the buyer reviews the buying situation. Here, the buyer is interested in modifying the specifications of goods previously purchased.
Answer:
The correct answer would be, The Canadian Airline would have used Lost Customer Recovery Strategy.
Explanation:
When the sales of the Canadian Airline declines, they surveyed their target market which is Business Class Travelers. From the responses of the customers, they found out that customers feel bounded by the staff of the airplane. They think that they were totally controlled by the staff on board.
Now if the Canadian Airline would have surveyed their former customers, then they would have known why they left their airline, and what was their concerns and what they want in this airline; then the strategy used by them would have Lost Customer Recovery Strategy.
Answer:
It may turn off it's current customer base and cause them to purchase a competitors ice cream.
Explanation:
Market penetration strategy is the process of selling current products to an already existing market so as to obtain a higher market share by taking the market shares from the other competing companies.
Market penetration strategy uses low prices to generate demand for a product and increase market share. Bud's bucket ice cream decides to penetrate the gourmet market by offering its same ice cream at high prices instead of reducing the price, this might lead to a reduction in their current customer base.
The fourth answer is correct (D).
The savings account is an investment that generates little income. To make long-term investments, there are other options that give a better return.
However, this type of account serves so that the money that will be used in the short term has at least some income. In other words, if the investor is sure that he does not need the liquidity of the money, he can apply in bonds, debentures, shares, etc. If the investor has money that needs to be kept liquid to be used soon, the best option is the savings account.
