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sp2606 [1]
4 years ago
14

When Sony released the PlayStation 4, it was reported that Sony was taking a loss of $60 on every PS4. However, Sony expected to

make this up with sales of PS subscriptions and increased royalties from video games. Use the interdependence principle to help explain this strategy.
The PS subscriptions allow PS4 owners to play their games online, receive new games monthly to download at no charge, and receive additional special discounts on other items. Therefore, the PS4 and PS subscriptions are _________ in consumption. Decreasing the price of the PS4 will the demand for PS subscriptions. Sony expects that revenue from recurring PS4 _________ will be larger than the loss in revenue from PS4 sales.
Business
1 answer:
Oksanka [162]4 years ago
4 0

Answer: Complimentary; Increase

Explanation:

<em>Therefore, the PS4 and PS subscriptions are </em><em><u>complimentary </u></em><em>in consumption. Decreasing the price of the PS4 will </em><em><u>increase </u></em><em>the demand for PS subscriptions. Sony expects that revenue from recurring PS4  will be larger than the loss in revenue from PS4 sales.</em>

<em />

When goods are said to be complimentary it means that they are used along with each other. Like coffee and sugar. The PS4 and and the PS subscriptions are complimentary because owners of the PS4 use the PS subscriptions to play online.

By reducing the price of the PS4, more people will be able to buy it and then will have to make PS subscriptions so that they can play the PS4s thereby giving Sony revenue which might be higher than the amount they lost by reducing the PS4 price.

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Gypsy foods inc. is a multinational food and beverage company. its product labels are colorful and project the words "new" and "
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4 years ago
​Analysts who follow Howe Industries recently noted that, relative to the previous year, the company's net cash provided from op
tamaranim1 [39]

Answer:

Option B ​The company made large investments in fixed assets.

Explanation:

The reason is that the reaminder of the options talk about the increase of the cash not a decrease in cash amount. If the company cuts dividend then it is retaining cash, if the company is raising finance then it is increasing cash or if the company is selling its division or assets then it is raising cash.

These things constitutes to increase in cash flow.

The decrease is cash occurs when the company invests (cash outflow). So the company is making cash outflows which means cash level will decrease.

4 0
3 years ago
The marginal cost curve crosses the average total cost curve at a. The efficient scale. b. The minimum point on the average tota
polet [3.4K]

Answer:

b. The minimum point on the average total cost curve

Explanation:

the marginal cost is the cost of making or producing one more additional unit of a product and then average total cost is the average of the total cost to produce units so if both these curves intersect then that means that will be the minimum point on the average total cost curve because at a point where if the marginal cost is less than the average cost then the average total cost will fall so the intersection point shows where the average total cost is a minimum because if its above that point the average total cost will rise.

6 0
4 years ago
Kokomochi is considering the launch of an advertising campaign for its latest dessert product, the Mini Mochi Munch. Kokomochi p
alexgriva [62]

Answer:

Kokomochi

The incremental earnings associated with the advertising campaign in its first year is:

= $0.3 million.

Explanation:

a) Data and Calculations:

Advertising campaign cost = $5.5 million

                                                  Mini Mochi     Other Products   Total

                                                      Much

Incremental sales revenue        $8.2 million      1.8 million        $10 million

Incremental cost of goods sold   5.2 million      1.4 million           6.6 million

Incremental gross profit            $3.0 million      0.4 million          3.4 million

Advertising cost                                                                              3.1 million

Incremental earnings associated with the advertising campaign = $0.3 million

Advertising cost apportioned to:

This year = $8.2/$14.4 * $5.5 million = $3.1 million

Next year = $6.2/$14.4 * $5.5 million = $2.4 million

6 0
3 years ago
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