Answer:
The Correct answer is A
Explanation:
Strategy of low cost is the kind of the pricing strategy, in which the business or organization, offers or provide the products or services at low price. This strategy helps in stimulating the demand as well as gain or acquire the higher market share.
So, the strategy which is competitive and also the low cost provider in the industry work well when:
1. Newcomers in the industry uses at the introductory stage, the low prices so that could attract the buyers.
2. The competition on the price between the rivals sellers is vigorous.
3. The buyer also incur the low costs while switching the purchases from seller to another seller.
4. The product which are commodity grounded prevail as well as has minimal differentiation.
Answer:
Sell the parts without any processing because the profit is higher ($20,000 vs $15,000)
Explanation:
they have two options:
- option A, sell the parts as they are and make $20,000 in profits (= $120,000 - $100,000).
- option B, further process the parts by spending $75,000 and sell them for $190,000, and make only $15,000 in profits (= $190,000 - $100,000 - $75,000).
The best option is A, to sell the parts without any processing because the profit is higher and they do not have to spend more money.
Answer:
The graph has been attached.
Explanation:
a. Please see attached graph with the shaded budget set labelled A
b. Please see attached. Curve C; D and E are the indifference curves. The most suitable one would be D since it is on the budget curve. E is not maximum utility and C is unattainable given his budget of $20.
c. U (X,Y) = X + 2Y
At C, Utility = 10 + 2(10) = $30. That is above his budget
At D, Utility = 10 + 2(5) = $20. This is within his budget. – most utility.
At E, Utility = 5 + 2(5) = $15. This is below his budget.
The Indifference curve that gives most utility is D, where cheese is 10 and cocoa is 5 units.
Answer:
C. Debt Service Fund.
Explanation:
Dept service funds can be described as monies or reserves which are been used to pay for capitals, interest and certain dept that have accrued by the company and it can cover for any other form of dept owed by the company.
It's existence is put in place to reduce the risk of a debt security for future investors. This can be paid out monthly mid-monthly, quarterly or possibly yearly.
This why the tax on general obligation bonds that has been put upon Downtown city to finance the hall has it receipts in place at the dept service fund office.
Answer:
a) 17.5%
Explanation:
The computation of the simple rate of return on the investment is shown below:
Simple rate of return = Annual net income ÷ Initial investment
where,
Annual net income is
= Sales revenue - cash operating expenses - depreciation expenses
= $250,000 - $100,000 - ($400,000 ÷ 5)
= $70,000
And, the initial investment is $400,000
So, the simple rate of return is
= $70,000 ÷ $400,000
= 17.5%
Dividing the annual net income by the initial investment we can get the simple rate of return
