Answer:
The correct answer is: Cost-Plus Pricing Strategy.
Explanation:
To begin with, a ''Cost-Plus'' is the name that a pricing strategy receives in the field of marketing and business that mainly focuses on the pricing of a product by the cost of it plus a certain porcentage of benefit, considering this last one as the benefit margin. Moreover, this type of pricing strategy is one of the most common ones in the field, typically the businesses use this type of pricing strategy due to the fact that it is easy to establish and it does not consider complex terms.
Secondly, in this case where the manager notices such a difference in the prices of the two cans is due to the fact that the manufacturer put less commodities and less effort in the can of 16-ounce rather than in the other can of 32-ounce where there is more soup and therefore there is more cost in that can, establishing that a higher price must put in that one.
Answer:
Because :- CEOs & CFOs can have significant impacts throughout the entire business, & the type of reward plan will encourage the CFOs to work in a more rational manner.
Explanation:
CEOs & CFOs are a part of upper level of management of an organisation. Effectiveness & Efficiency of their managerial skills is very crucial to management of company. So, to encourage proper management of companies by senior managers, they can be incentivised by mix of fixed & variable salary structure. The variable component of salary as per company performance under CEO or CFO, positively motivates them to improvise their performance, which subsequently improves company performance.
Answer:
Explanation:
Given that:
a)
1$ = Can $1.12
It takes a value of 1 U.S dollar to have 1.12 Canadian dollars. This signifies that the U.S dollar is worth more than Canadian dollars.
b)
Assuming that the absolute Purchasing Power Parity PPP holds,
Since 1$ = Can $1.12, the cost in the United States of an Elkhead beer, if the price in Canada is Can$2.85 can be determined to be:
= ![\dfrac{2.85}{1.12}](https://tex.z-dn.net/?f=%5Cdfrac%7B2.85%7D%7B1.12%7D)
= $2.545
c)
Yes, the U.S. dollar is selling at a premium relative to the Canadian dollar.
This is because we are being told that the spot exchange rate for the Canadian dollar is Can $1.12 & in six (6) months time the forward rate will be Can $1.14.
d)
The U.S dollar is expected to appreciate in value because it is trading at a premium in the forward market.
e)
Canada has higher interest rates. This determined by using the formula:
= ![\dfrac{(\dfrac{Fwd}{Spot }-1)}{n}](https://tex.z-dn.net/?f=%5Cdfrac%7B%28%5Cdfrac%7BFwd%7D%7BSpot%20%7D-1%29%7D%7Bn%7D)
where; n= numbers of years = 6 month/12 month = 0.5 year
Then;
![=\dfrac{(\dfrac{1.14}{1.12 }-1)}{0.5}](https://tex.z-dn.net/?f=%3D%5Cdfrac%7B%28%5Cdfrac%7B1.14%7D%7B1.12%20%7D-1%29%7D%7B0.5%7D)
![= \dfrac{(1.0178-1)}{0.5}](https://tex.z-dn.net/?f=%3D%20%5Cdfrac%7B%281.0178-1%29%7D%7B0.5%7D)
![= \dfrac{(0.0178)}{0.5}](https://tex.z-dn.net/?f=%3D%20%5Cdfrac%7B%280.0178%29%7D%7B0.5%7D)
= 0.0356
= 3.56%
Answer:
$270m
Explanation:
We can calculate the amount that will increase W's shareholder's equity when the options are exercised as follows
Increase in equity = No Options Granted x Exercise price at the date of grant
Increase in equity = 15million x $18
Increase in equity = $270m