Answer:
Whether the demand for their product is elastic or inelsatic AND whether they have close competitors
Explanation:
*DEMAND ELASTIC OR INELASTIC*
If the product A&B is selling has close substitutes, the product is likely to be more elastic. This means that even a slight rise in price will shift consumers to the substitutes ( competitor's product) which have lower prices. Moreover if the product takes a larger proportion of people's income, and is a luxury, the price is likey to be elastic. However if the product is inelastic ( the product doesn't have close substitutes), an increase in price will not cause much fall in sales, resulting in the prevention of losses in revenue. By using this knowledge A&B can determine whether or not they can use price skimming or promotional pricing.
*CLOSE COMPETITORS*
If the product that A&B is selling has close competitors, raising the price greater than competitor's prices will result in losses of A&B and it will loose customers to rival businesses. A&B can also decide by observing the quality of rival's products and examine whether they should further increase the quality and set higher prices for their product to create a 'higher quality image'.
Through these observations A&B can decide if competitive pricing or penetration pricing will be suitable for it or not.
Answer: Counter trade
Explanation: In simple words, counter trade or bilateral trade refers to the situation when two entities exchange goods or services with one another without using any money. This kinds of trade does not use money but can be valued in monetary terms.
In the given case, Large co were trading their product for the product of other company. Both the products have their own market value.
Hence from the above we can conclude that they were engaged in counter trade.
Answer:
Explanation:
The question is incomplete due to missing data. Hence, I formulated the same as shown below to your ease:
Gross Education Revenue = C* N* (1-D)
where, C = Education Cost per attendee,
N = Number of education attendees
D = Education discount rate
So, this formula is to be copied and pasted in cell J5 to J8.
Explanation:
The journal entries are shown below:
On May 1
Accounts receivable A/c Dr $5,800
To Sales A/c $5,800
(Being the sale is recorded)
Cost of goods sold A/c Dr $4,000
To Merchandise inventory A/c $4,000
(Being the cost of the item sold is recorded)
Only these two entries are recorded under the perpetual inventory system