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3 years ago

When Nintendo sets a relatively low price on game units to stimulate more demand for its game cartridges, it is using

Business

1 answer:

torisob [31]3 years ago

4 0

Answer:

Letter A is correct.<em> Complementary product pricing.</em>

Explanation:

Organizations use the strategy of adopting a complementary product pricing to increase the total profit of a product group.

This strategy is used when the company sells products that are complementary, ie the use of one is complemented by the use of the other, so the company substantially decreases the price of a product, usually just to cover costs, and guarantees gains from a product with a high price and very high profit margin.

The benefits added to the complementary price of a product are market gain, competitors' entry barriers and retention and attraction of new consumers.

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In March 2021, the Phillips Tool Company signed two purchase commitments. The first commitment requires Phillips to purchase inv

xeze [42]

Answer:

Journal entries

Date Account title and explanation PR. No. Debit ($) Credit ($)

June 15,2021 Purchases $85,500

Loss on purchase commitment $15,000

Cash $100,000

(To record the payment for the loss on

purchase commitment)

June 30,2021 Estimated loss on purchase

commitment $10,600

Estimated liability on purchase

commitment $10,600

(To record the loss on purchase commitment)

Aug 30,2021 Purchases $120,500

Loss on purchase commitment $19,900

Estimated liability on purchase

commitment $10,600

Cash $151,000

(To record the payment for the loss on purchase commitment)

Explanation:

For June 15, Loss on purchase commitment = Signed value of inventory - Market value of inventory = $100,000 - $85,500 = $14,500

For June 30, Loss on purchase commitment = Signed value of inventory - Market value of inventory = $151,000 - $140,400 = $10,600

For Aug 30, Loss on purchase commitment = Market price of inventory at June 30 - Market value of inventory at August 30 = $140,400 - $120,500 = $19,900

4 0

3 years ago

On December 31, Sulfur Corporation has the following data available: Net Income $ 170 comma 000 Interest expense 30 comma 000

Gnom [1K]

Answer:

40%

Explanation:

The computation of the return on equity is shown below:

= (Net income - interest expense) ÷ (weightage average of common stockholders' equity)

where,

Weightage average of common stockholders' equity equals to

= (Total common stockholders' equity at the beginning of the year + Total common stockholders' equity at the end of the year) ÷ 2

= ($410,000 + $290,000) ÷ 2

= $350,000

And, the other items values would remain the same

Now put these values to the above formula

So, the value would be equal to

= ($170,000 - $30,000) ÷ ($350,000)

= 40%

5 0

3 years ago

Barbara's Bakery purchased three new 7-year assets last year. She chose NOT to use Section 179 immediate expensing or take bonus

frez [133]

Answer:

$ 4,748

Explanation:

The depreciation expenses = $(\$ 15000 \times 17.85 \%) + (\$ 6000 \times 10.71 \%)+(\$ 40000 \times 3.57 \%)$

$= \$ 2677.50 + \$ 642.6 + \$ 1428$

= $ 4748

Generally we have use half year convention for assets that are purchased during the year but here we used the mid quarter as of more than the 40% of the assets are being purchased in last quarter of the year

$=\frac{\text{assets purchased in last quarter}}{\text{total assets purchased in the year}} \times 100$

$=\frac{40000}{61000} \times 100$

$=65.57 \%$ (it is more than 40%)

Thus we can use the mid quarter mars depreciation rates for the 7 years assets that are purchased this year.

8 0

3 years ago

A small business invests $9,900 in equipment to produce a product. Each unit of the product costs $0.65 to produce and is sold f

Lelechka [254]

Answer:

To break even the company must sell

Explanation:

The position at which the company is at no profit and loss position then it is said that the company is at breakeven position.

Break-even position can be found from the following position:

Breakeven position = Fixed cost / contribution per unit

The fixed cost here is initial investment which is $9900 and the contribution can be found by taking the difference between selling price per unit and variable cost per unit. The contribution per unit is $0.55 per unit ($1.2 - $0.65). By putting values in the above equation we have:

Breakeven position = $9900 / $0.55 per unit = 18000 Units

So 18000 units are required to sell to reach at a no profit no loss position.

3 0

3 years ago

Check my work Check My Work button is now enabledItem 17Item 17 0.25 points Time Remaining 2 hours 18 minutes 10 seconds02:18:10

Serga [27]

Answer:

The dollar return is $45

nominal rate is 4.46%

real rate is 1.46%

Explanation:

The total dollar return on the bond can be calculated as: price today+coupon received-price paid last year

price today is $985

price paid last year $1010

coupon received =$1000*&7%=$70

dollar return=$985+$70-$1010

=$45

The nominal return on investment =dollar return return/price paid last year

=45/1010

=4.46%

nominal rate =real rate +inflation rate

real rate =nominal rate-inflation rate

nominal rate =4.46%

inflation rate=3%

real rate=4.46%-3%

real rate=1.46%

6 0

3 years ago