Answer:
<em>Value $ 256,250</em>
<em>rounding against nearest 1,000 dollar: 256,000</em>
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Explanation:
From the gross income we subtract the expenses and vanacy losses.
40,000 gross income - 3,500 vacancy - 16,000 operating expense
20,500 net
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Now, we solve for the present value of a perpetuity given the capitalziation rate of 8%
$ 20,500 / 0.08 = <em>$ 256,250</em>
Answer:
During the growth stage of the product life cycle, the growth of a product begins to plateau, and the company must take advantage of economies of scale and marketing messages and promotions that seek to remind customers about a great product, differentiate from competitors, and reinforce brand loyalty.
Explanation:
Hope this helped
Answer:
Predetermined manufacturing overhead rate= $14.65 per direct labor hour
Explanation:
Giving the following information:
Estimated direct labor hours= 40,000
Estimated fixed overhead= $466,000
Estimated variable overhead rate= $3.00 per direct labor-hour.
<u>To calculate the predetermined manufacturing overhead rate we need to use the following formula:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (466,000/40,000) + 3
Predetermined manufacturing overhead rate= $14.65 per direct labor hour
I would choose the cost-focus strategy because it depends on what the product is. The sales team should determine where the product would be placed on the cost leadership spectrum as it can help determine the value of what the product is worth. To add-on, cost-focused pricing focuses on building a reputation for the product as a good product for people to buy therefore your company becoming a niche leader in that product industry. In the end though, any product pricing strategy can work but it all depends on the situation and the resources around a business and product. Hope this helps!