The Pricing strategy which Dream Homes implemented is known as Price lining (Option A) which categorized the prices accordingly with the financial soundness of the customers.
Explanation:
The demand for more goods always plays a vital role in ensuring good sales. The likes of the customers towards particular products depend upon the nature of unique features and its fine quality. By capturing the pulse of the purchasing power of the customers, the business ventures fixed the prices according to the level of economical weaker sections, middle, and high-income groups.
In this case, Dream Homes fix the price of freezers by measuring the ability of customers' to buy them without compromising with the customers requirements. Dream Homes uses the price lining method to gain customers' reputation by selling the products accordingly with their status of income level.
Answer:
Unrelated Diversification
Explanation:
The reason is that the company has entered in a number of product offering that are unrelated to each other. This means the company has subtantially reduced its industry risk by managing a portfolio of products that are different from each other from industry perspective. This is an example of unrelated diversification because comics are unrelated to sports figures, music videos and motion pictures.
Answer:
117,000 adjusted COGS
Explanation:
35,000 + 136,000 = 48,000 + COGS
COGS = 123,000 before adjustment
overapplied overhead for 6,000
This means the applied is higher than actual expenses, the cost is 6,000 lower we must decrease the COGS
123,000 - 6,000 = 117,000 adjusted COGS
Answer:
The answer is b. Surpluses drive down prices
Explanation:
If you have a large volume of crops, it would not drive up the price simply because there is not a lot of demand for the crop. In that sense, both c and d (even though d is relevant to the equipment) are incorrect. If there is a lot of surplus, farmers will have to lower their prices in order to sell it. They lose in profit which is why large crop surplus are a problem for farmers.
Answer:
The amount of dividends paid to common stockholders in 2016 is $4000
Explanation:
The cumulative preferred shares are the shares that accumulate dividends in case the dividends on these shares are not paid or paid partially in a year. The accumulated dividends will need to be paid first whenever the company declares dividends.
The amounts of dividends on preferred share for one year is,
Dividends - Preferred shares = 20 * 0.05 * 1500 = $1500
Thus, the accumulated dividends on these preferred shares at start of 2016 is,
Accumulated dividends - Preferred shares = 1500 * 3 = $4500
The common shares holders are paid after the preferred share holders have been paid. This means that we will deduct the amount of accumulated dividends on preferred shares and the dividends for this year on preferred shares from the total dividends to calculate the amount to be paid to common share holders as dividends.
Common stock dividends = 10000 - (4500 + 1500) = $4000
