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3 years ago

A primary reason that a firm would use average-cost pricing is that it

Business

1 answer:

neonofarm [45]3 years ago

8 0

Answer:

it is very simple and easy to do it.

Explanation:

Companies that use average cost pricing just add markup that they consider reasonable to the average cost of a product, and you have the final selling price of the product.

A disadvantage of using average cost pricing is that t does not consider how costs change as your sales level changes. This method usually works best when the company is able to estimate its total sales ad then use that estimation to calculate the average cost price.

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Consider a numerical example using the Solow growth model. Suppose that F(K,N) = K^ 0.5N^ 0.5, with d = 0.1, s = 0.2, n = 0.01,

Sliva [168]

Find the solution in the attachments

4 0

4 years ago

Michael is in sales meeting with a potential client. The client is interested in the product but is concerned that the product c

GalinKa [24]

Complete Question :

Michael is in sales meeting with a potential client. The client is interested in the

product but is concerned that the product costs 15% more than the competitor's.

How should Michael handle this sales situation?

A.) Offer the client a 20% discount.

B.) Ask the client how much he or she would be willing to pay for the product.

C.) Show the client the better warranty and quality that comes with the slightly

higher cost.

D.) Say "Thanks for your time" and leave

Answer: C.) Show the client the better warranty and quality that comes with the slightly

higher cost.

Explanation: The fact that Michael's product costs 15% more than the price of it's competitor doesn't spell the end of the deal. What Michael needs to explain and make clear to the client in the sales meeting are the vague distinctions which exists between what his own product offering and that of it's competitors. Michael needs to let the potential buyers understand and get clearly the additional offers, quality or performance associated with his own product which ultimately accounts for the higher cost of his own product.

4 0

3 years ago

A firms supply curve is equal to _________________ above the minimum point on the ________________curve. Select the correct answ

Sergio [31]

Answer:

The correct answer is: marginal cost; average variable cost.

Explanation:

The supply curve of a perfectly competitive firm is equal to its marginal cost curve above the minimum point of its average variable cost. This happens because the firm supplies at the point where its price is equal to marginal cost and covering the average variable cost.

In case the product price does not cover the average variable cost, the firm will stop production.

3 0

4 years ago

A fitness professional is training a beginner client who has never tried resistance training. How many exercises per body part i

yuradex [85]

Answer:

1-2.

Explanation:

4 0

4 years ago

Samtech Manufacturing purchased land and building for $4 million. In addition to the purchase price, Samtech made the following

allochka39001 [22]

Answer:

Land $3,034,200

Building $1,011,400

Land improvement $154,000

Land $4,541,600

Land improvement $154,000

Explanation:

Under GAAP, the valuation of assets will be included all the cost which are necessary to put the asset in ready-to-use stage.

* Cost of land and building = Purchased price + Title insurance + Legal fees for drawing the contract + State transfer fees = 4,000,000 + 32,000 + 8,000 + 5,600 = $4,045,600

Cost of land and building will be allocated based on their fair values

=> Land : 4,045,600 * 3.6/(3.6+1.2) = $3,034,200; Building = 4,045,600 * 1.2/(3.6+1.2) = $1,011,400

* Land improvement - Cost for parking lot + Cost for landscaping = 98,000 + 56,000 = $154,000.

* Cost of land = Purchased price + Title insurance + Legal fees for drawing the contract + State transfer fees + Demolition cost - salvaged materials + Clearing and grading cost = 4,000,000 + 32,000 + 8,000 + 5,600 + 410,000 - 9,000 + 95,000 = $4,541,600.

8 0

4 years ago