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mote1985 [20]
3 years ago
15

When Prestige Appliances Inc. releases new appliances, it often uses price skimming and sets the initial price at the highest po

ssible price that buyers are willing to pay. What is a reason Prestige Appliances Inc. would choose price skimming instead of penetration pricing?
Business
1 answer:
sashaice [31]3 years ago
6 0

Answer:

skimming is more flexible than penetration

Explanation:

  • When Prestige uses price skimming with highest initial possible price because price skimming is more flexible than penetration pricing
  • As Penetrating pricing and price skimming are the marketing strategies that companies typically employ when launching new products or services. Both approaches work for businesses.
  • Penetration pricing relies on lower upfront prices to attract customers, while skimming is the use of higher upfront prices to maximize short-term profits from most avid and willing customers.
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If closing costs of $1,400 are associated with the refinance of reduce the monthly payment fro m $980 to $870 refinance, it woul
Anna71 [15]

Answer:

time take = 13 months

so correct option is C.)13

Explanation:

given data

closing costs = $1,400

monthly payment reduce = $980 to $870

to find out

Time to cover cost

solution

we know here monthly payments after reduction will be

monthly payments = $980 - $870

monthly payments = $110

so

time taken is = \frac{closing\ costs}{monthly\ payments}  .........1

time taken is = \frac{1400}{110}

time take is = 12.727273

time take = 13 months

so correct option is C.)13

8 0
3 years ago
For the following transaction, determine whether cash flows from operating activities will increase, decrease, or remain the sam
grandymaker [24]

In case collected cash from a customer is for services that will be performed in the next accounting period the cash flow from operating activities will increase.

The cash flow from operating activities will increase cash flow in the period of receipt itself as it will result in an increase in the cash balance of the organization  In case collected cash from a customer is for services that will be performed in the next accounting period.

If the balance of an asset will increase, cash float from operations will be lower. If the stability of an asset decreases, cash flow from operations will boom. If the balance of liability will increase, cash flows with the flow from operations will grow. If the balance of a liability decreases, cash flows with the flow from operations will decrease.

An accounting period, in bookkeeping, is the length with reference to which control accounts and economic statements are organized. In management accounting, the accounting length varies extensively and is decided with the aid of management. monthly accounting durations are common.

Learn more about accounting here brainly.com/question/26690519

#SPJ4

8 0
2 years ago
Explain how quickly a new product will be adopted, given the values and regular experiences of potential customers?
FromTheMoon [43]

Answer:

Explain how quickly a new product will be adopted, given the values and regular experiences of potential customers?

B. Compatibility.

Explanation:

Marketing can be defined as all the activities aimed at improving a business product to potential customers with the aim of improving the company's market share. Most companies use marketing as a tool to improve their sales. It is mostly crucial in companies that want their new product to be adopted by their potential customers. For this to happen, the following factors have to be considered;

1. Complexity

Complexity can be defined as the ability of the potential customers to understand your product. The marketing of the product should be in simple and clear language that will easily be understood by most customers. The product should also be easy to use in the customer's daily life. It has been know that the more complex a product is, the harder it will be for the customers to adopt it.

2. Compatibility

Compatibility can be defined as the rate at which the product being offered aligns well with market values and expectations. The more compatible the product is to the market the faster the product will be adopted.

6 0
3 years ago
To accurately compare the rate of return on one investment with another, they should be:
NISA [10]

Answer:

Measured over equal time periods.

Explanation:

To get an understanding of the <u>rate</u> of return you first need to lay down a period of time that you can use as a baseline when comparing the return of each investment.

7 0
3 years ago
Janet planned to purchase a McDonald's franchise. Meanwhile, Jason decided to open his own sandwich shop. Both decided to financ
Fantom [35]

Answer:

The correct answer is Banks view franchises as having fewer risks than other start-up businesses.

Explanation:

Franchising as an investment opportunity offers great advantages over other systems, this is an attractive alternative to develop a business; However, it will always be necessary to consider the pros and cons, before making a decision to franchise my business or not.

When I evaluate the possibility of franchising my business I have to be willing to assume a greater or lesser risk, that is, I am free to choose how much risk I am willing to accept in the development of my business model under the franchise scheme, and it is precisely this knowledge of the situation, which allows us to make the best decision about whether to expand my business (and under what conditions) or on the contrary wait for the business model to be at a more advanced stage of maturity before starting a project of franchise development.

4 0
3 years ago
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