1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
lesya [120]
3 years ago
8

Cosmeticon, a U.S.-based firm, has recently started exporting cosmetics to India. Cosmeticon has introduced a new range of miner

al-based makeup products for the first time in the Indian market. As Cosmeticon has no competitors in this segment of the Indian cosmetics market, it has set a very high price for its products in order to reach the premium, price insensitive segment of the market. This is an example of _________.
Business
2 answers:
saw5 [17]3 years ago
8 0

Answer:

Price skimming

Explanation:

Price skimming is a pricing strategy that is used when a product is initially introduced into the market. It involves selling the product at a high price and then lowering its cost as the product gets older in the market.

Price skimming strategy is used when a product in newly produced because there will less competitors in the market which then forces the customers to purchase the product at any given price.

Price skimming enables the manufacturers of the product to maximise profit due to the uniqueness of the product and absence of competitors.

NikAS [45]3 years ago
6 0

Answer:

Price skimming.

Explanation:

Price skimming is a pricing strategy in which an organization gradually lowers it's selling price after initially charging it's customers a high price in order to attract more price-sensitive customers. It is mostly used by a first-mover who faces lesser competition in business.

In this scenario, Cosmeticon had no competitors in that segment of the Indian cosmetics market, so it set a very high price for its products in order to reach the premium, price-insensitive segment of the market.

You might be interested in
Current operating income for Bay Area Cycles Co. is $74,000. Selling price per unit is $120, the contribution margin ratio is 30
NeX [460]

Answer:

1. 6,944 units and $833,333.33

2.  $1,080,000 and  22.83%

Explanation:

The computations are shown below:

1. Break-even point in units

= (Fixed expenses ) ÷ (Contribution margin per unit)  

where,  

Contribution margin per unit = Selling price per unit × contribution margin ratio

= $250,000 ÷ $36

= 6,944 units

Break-even point in sales

= (Fixed expenses ) ÷ (Contribution margin ratio)  

= $250,000 ÷ 30%

= $833,333.33

2. For margin of safety and margin of safety ratio:

Margin of safety = Expected sales - break even sales

where,

Expected sales = (Operating income + fixed expense) ÷ (contribution margin ratio)

= ($74,000 + $250,000)

= ($324,000) ÷ (30%)

= $1,080,000

So, the margin of safety would be

= $1,080,000 - $833,333.33

= $246,667

Margin of safety ratio = Margin of safety ÷ total sales

                                      = $246,667 ÷ $1,080,000

                                      = 22.83%

3 0
2 years ago
A record store that sells $1,000 woth of CDs per day to 40 customers ( the average cost of goods sold per unit is $12.50) How mu
sleet_krkn [62]

Answer:

$500

Explanation:

COGS or the cost of goods sold is the total cost of all goods sold in a period. It is the direct cost of productions and include direct labor costs, direct materials, and direct overhead costs.

In this case, The average cost of goods sold per unit is $12.50. The business sells to 40 customers. The totals cost of goods sold or the COGS will be

=$12.50 x 40

=$500

5 0
2 years ago
"The function C(t)=C(1+r)t models the rise in the cost of a product that has a cost of C today, subject to an average yearly inf
Cloud [144]

Answer:

$351,912.61

Explanation:

Data provided in the question:

function that models the rise in the cost of a product

C(t)=C(1+r)^t

C = $285,700

t = 14 years

r = 1.5% = 0.015

Now,

On substituting the respective values in the given function, we get

inflation-adjusted cost in 14 years i.e C(14) = $285,700(1 + 0.015)¹⁴

or

C(14) = $285,700 × 1.2317

or

C(14) = $351,912.61

4 0
3 years ago
When marketers use a variety of communication disciplines-advertising, personal selling, sales promotion, public relations, dire
BARSIC [14]

<u>Answer:</u>

<em>It is referred to as </em><u><em>Integrated marketing communications  </em></u>

<u></u>

<u>Explanation:</u>

IMC speaks to the advancement P of the "four Ps". It envelops an assortment of correspondence disciplines publicizing, personal selling, deals advancement, advertising, direct showcasing, and web-based promoting, including web-based life in the mix to give transparency, consistency, and most extreme open effect.

IMC folds correspondences over clients and causes them to travel through the different phases of the purchasing procedure. The association combines its picture, builds up an exchange, and supports its association with customers.

3 0
3 years ago
Salvia Company recently purchased a truck. The price negotiated with the dealer was $42,500. Salvia also paid sales tax of $2,50
LenaWriter [7]

Answer:

$48,500

Explanation:

Price $42,500

Sales tax on the purchase $2,500

shipping and preparation costs $3,500

$42,500+$2,500+$3,500=$ 48,500

Therefore the truck should be recorded on the balance sheet prior to recording depreciation expense with $48,500

8 0
2 years ago
Read 2 more answers
Other questions:
  • Lucky Louie just inherited $50,000 from his great aunt, has $1,500 in his checking account, owns a car with a value of $8,000, a
    15·1 answer
  • The most commonly used private trade terms are the International Chamber of Commerce’s Incoterms.
    13·1 answer
  • Preston wants to be an accountant. When he decides on a college education, which would be the best choice for this career?
    9·2 answers
  • For a perfectly competitive industry with identical firms, the long-run industry supply curve is: perfectly elastic. horizontal.
    14·1 answer
  • During this stage, customers are growing more aware of the product and its benefits. Choose the answer.
    9·2 answers
  • Consider the statements. Indicate whether each statement falls mainly under the field of microeconomics or macroeconomics.
    10·1 answer
  • Explain why socialist societies do not use a circular flow chart.
    12·1 answer
  • Your hypothesis is that "Quarterly maintenance of plant machinery will reduce the number of product defects except when worker r
    15·1 answer
  • Assume you decide you should invest at least part of your money in large-capitalization stocks of companies based in the United
    7·1 answer
  • Over the past century, real gdp per person in the u. s. has grown about _____ percent per year, which means it doubles about eve
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!