Answer:
Accounting profit - Your actual profit
Economic profit - Profit, but opportunity cost factored out
Explanation:
Accounting profit is how much you made (Revenue - Explicit Cost.
Economic profit includes implicit costs, or opportunity cost. If you could have made $100,000 at a different job, you subtract that. If Accounting-Economic profit is 0 or higher, you should stay in business.
Answer:
While setting the price of a product, managers must consider all of the following: A) cost of the whole marketing mix B) buying capacity of the customers C) profit it should bring the company D) transportation cost E) personnel cost to the company
Explanation:
Key factors in calculating the sale price can be:
- Costs are a major factor in determining the selling price and a way of forming a price that is primarily related to costs called “ground” because it represents the minimum at which the price can be set. It includes cost plus other costs with no projected or minimal profit;
- Demand/buying capacity as a key factor in price calculation is tied to a method called the "ceiling" because capacity exceeds the price limit that customers are willing to accept to get a product or service.
- Competition as a pricing factor refers to alternatives that customers can choose from, and competition allows them to do so;
Cost-based pricing has its sub-methods such is Cost plus method
The basic principle is to add a rate of profit to the sum of direct and indirect costs. This way price consider a profit to it should bring to company.
Direct costs include material and labor costs, and indirect or general costs comprise a portion of fixed indirect costs such as depreciation, administration costs, sales costs and other general costs.
Formula: price = Direct costs + Indirect costs + Rate of profit
Answer:
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Complete question:
Trudy owns a Dell laptop computer. She uses the computer in class and her classmates can see the Dell logo when she uses her laptop. One of her classmates is looking to purchase a new laptop and asks Trudy her opinion of Dell computers. Trudy informs her classmate that she is satisfied with her laptop and recommends that her classmate purchases one, too. For Dell, Trudy is exhibiting some of the benefits of _____.
a. brand recognition
b. brand equity
c. brand insistence
d. brand loyalty
e. brand mark
Answer:
For Dell, Trudy is exhibiting some of the benefits of brand loyalty
.
Explanation:
Brand loyalty is described as favorable emotions towards the company and willingness to buy the same product or service consistently from the same company now and in the future, irrespective of the behavior of the rival or adjustments in the world.
Corporations spend large sums of money in customer support and promotions in order to create and retain brand awareness with the existing commodity.
Coca-Cola Corporation is an example of an established company that has culminated in consumers showing brand loyalty in light of Pepsi's beverages and advertisement campaigns over the years.
