The greatest risk of a low-cost provider strategy is getting lost with overly high price reduction and ending up with lower profit.
<h3>Low-cost / low-price advantage </h3>
It results in high profit only if;
- (1) prices are reduced by less than the size of the cost advantage or
- (2) the added volume is large enough to bring in a bigger total profit despite lower margins per unit sold.
Therefore, the greatest risk is a low profit.
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Answer:
PV=$15,500,000
Explanation:
To know the present value (PV) of the winnings we use the following formula:
PV= (F1/(i-g))*FC
F1= Payment in t=1 ( In this case it is $1,000,000 because you will receive it in one year)
i= interest rate (or discount rate: 6%)
g= growth rate (2%)
n= number of periods (25)
FC= 1-[(1+g)/(1+i)]^(n)
We replace in the formula:
FC= 1-[(1+2%)/(1+6%)]^(25)
FC=1-[0.382]
FC= 0.618
Rounded to 2 decimal places
FC= 0.62
PV=(1,000,000/(6%-2%))* 0.62
PV=(25,000,000)*0.62
PV=$15,500,000
Answer:
A debit of $6.6 million to a loss account
Explanation:
The entry to record the retirement Viper retires
Carrying value of the bonds $53.1 million
Less the market value of the bonds is $46.5 million
=$6.6 million loss
The answer is a debit of $6.6 million to a loss account because the carrying value of the bonds was $53.1 million while the market value of the bonds was $46.5 million which means we have to deduct the carrying value from the market value which gave us a loss of $6.6 million .
Answer:
C. adjusted trial balance to the financial statements.
Explanation:
The end-of-period spreadsheet can be regarded as accounting tools used in summarizing the movement of transactions that has been carried out throughout an accounting period. It is a tools that give representation of the end of the current accounting period.
permanent accounts that been found
the balance sheet, which are not not closed are been consisted by The post-closing trial balance.
It should be noted that Using an end-of-period spreadsheet, the flow of accounting information moves from the
adjusted trial balance to the financial statements.
Answer:
b. If a taxpayer is claimed as a dependent of another, his (or her) additional standard deduction is allowed in full (i.e., no adjustment is necessary).
Explanation:
The additional standard deduction amount increases to $1,600 for unmarried taxpayers. For 2018, the standard deduction amount for an individual who may be claimed as a dependent by another taxpayer cannot exceed the greater of $1,050 or the sum of $350 and the individual's earned income