Answer:
IN MARKETING WE EARN MONEY FOR OUR NEEDS
Consumer surplus is the difference between the maximum
amount the consumer is willing to pay for the price of the good and the price
that was actually paid by the consumer or commonly known as the current market
price. The price that the consumer is willing to pay is determined by the
demand curve in the market.
Answer:
The overhead cost allocated to Totes is $11556 and option c is the correct answer
Explanation:
To allocate the overheads between products using a plant wide rate, we need to calculate the plant wide Overhead absorption rate (OAR). The OAR allocates overheads to each product based on the activity level consumed by each product.
OAR = Budgeted Overheads / Budgeted Absorption base
As the overhead absorption base is the direct labor cost, we first need to determine the total direct labor cost for both the products.
Direct labor cost = 64 * 350 + 51 * 530 = $49430
OAR = 25500 / 49430 = $0.5159 per direct labor cost of $1
Direct labor cost used by Totes = 64 * 350 = $22400
Overheads to be allocated to Totes = 22400 * 0.5159 = $11556.16 rounded off to $11556
They are looking for leadership
STEP-4 that is Analyzing Competitors Costs , Price and Offers is the most appropriate stage.
Explanation:
As Kara Trace would initially set up its own :-
1. Pricing Objective
2.Understanding the Demand
3.Estimating the costs
In the next step would be to understand the competitors cost and profit margins. Also to understand the pricing strategy that can be
1. Premium Pricing
2. Penetrating Pricing
3. Skimming Pricing
4. Dynamic Pricing
5. Value Based Pricing
