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3 years ago

Why do companies lower product prices and offer free samples?

Business

2 answers:

shtirl [24]3 years ago

4 0

Answer:

A.to find out what people want in a product

Explanation:

Companies lower the value of products in a variety of ways, the main one being when demand falls. Free sample offering typically occurs when companies want consumers to test their products. This is mainly when new products are launched. A strong corporate strategy is to associate the price drop with the offer of free samples. This will cause the company to test consumer taste at the same time and to evaluate the demand for the product tested at a certain price. If the product is well accepted by consumers, in the future the company may raise the price if the demand for the product is high.

Lemur [1.5K]3 years ago

3 0

The best choice here is A) They give out the samples and free trials as a test to see how common it is for people to be interested in their product.
Hope this helps

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Currency traders buy on margin so they can do which of the following

Andreyy89

So they can gain profits with their choosen currencies, if the currency that they choose, raising, they gain profits

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3 years ago

Ferkil Corporation manufacturers a single product that has a selling price of $100 per unit. Fixed expenses total $225,000 per y

exis [7]

Answer:

d)= 6,500

Explanation:

The break-even point (BEP) is the units of the product that Ferkil Corporation must sell for it to make no profit or loss.

This units can be determined as follows:

BEP = Total fixed cost + target profit/ selling price - variable cost

So we substitute the variables given into the formula

5000 = 225,000 /(100-X)

5000×(100-X) =225,000

500,000 -5000x = 225,000

(500,000 -225,000)/5000 = x

X= 55

variable cost per unit = $55

Units to sell to achieve a profit 67,500

= (225,000 + 67,500)/(100-55)

= 6,500

6 0

2 years ago

Predetermined overhead rates in traditional costing are often based on

sp2606 [1]

Answer:

a) direct labor cost for job order costing and machine hours for process costing.

Explanation:

As we know that the predetermined overhead rate is the rate which is to be computed by considering the total estimated manufacturing overhead cost and the estimated activity level i.e machine hours, etc

Under the traditional costing, in case of job order costing it ts based on direct labor cost while in the process costing it is based on machine hours

Hence, first option is correct

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3 years ago

Harvey buys a used Jet Ski from Taylor's Water Sports. Harvey takes the Jet Ski to the river and discovers that it doesn't work.

joja [24]

Answer:

The correct answer is option A

a. cure the defect.

Explanation:

A problem that can be corrected based on the agreed terms and conditions by a seller or buyer is a curable defect.

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3 years ago

A major difference between ifrs and gaap relates to the revaluation surplus account. retained earnings account. share premium ac

AleksAgata [21]

A major difference between IFRS and GAAP relates to the A Revaluation Surplus Account.

A revaluation reserve is an equity account that stores changes in the value of fixed assets. If the revalued assets are subsequently disposed of by the company, the remaining revaluation reserve is credited to the company's retained earnings account.

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A revaluation reserve is an equity account that stores changes in the value of fixed assets. If the revalued assets are subsequently disposed of by the company, the remaining revaluation reserve is credited to the company's retained earnings account.

Learn more about Revaluation here: brainly.com/question/19908089

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