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Paladinen [302]
2 years ago
6

When setting optimal prices, which of the following is a concern when utilizing a regression of observed sales on observed price

s to set them?
a. All of these answers apply.
b. Future prices might be outside the range of past prices.
c. There is not enough variation in observed prices.
Business
1 answer:
brilliants [131]2 years ago
5 0

Answer:

The Future prices might be outside the range of past prices when setting optimal price

Explanation:

Future prices might be outside the range of past prices is a concern when utilizing a regression of observed sales on observed prices to set them because setting An optimal price enables the price at which the seller can make the highest profit possible in order to increase revenue with maximum profitability in which this can only be done when using the optimal pricing strategy for example in a situation where a company is competing in several locations and different market segments, this means clearly understanding and planning a special approach for the environments before the company makes any changes in their pricing strategy is important because Future prices might be outside the range of past prices.

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12.99 + 4.6 = 17.59 / 98
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Tread Inc. is the market leader for sports shoes in the subcontinent of Gavon. Though the brand has not introduced any new produ
Harman [31]

Answer: The answer is b

Explanation:

The concept of advertising response function is based on the theory of marginal physical product and shows the relationship between advertising and the level of consumption of the goods by the consumers. The theory of marginal physical product states that when there is a change in total product resulting from one unit change in the quantity of the resources used per unit of time. When average product is increasing ,marginal physical product is greater than average product,when average product is maximum ,marginal physical equals average product .when average product is decreasing marginal physical product is less than average product.The theory of marginal physical product can also be called the law of diminishing return which states that if increasing quantities of one factor of production are used in conjunction with a fixed quantity of other factors then, after a certain point each successive unit of the variable factor will make smaller and smaller addition to the total output. In this case, the law tells the Trend Inc when to stop adding more input of the variable factor to a fixed factor.

Invariably, we are saying that it high time for Trend Inc, should spend proportionately less on advertising than on newer line. It should now spend more money on bringing of new product into the market than spending more on the advertisement of the sport shoes because at a certain point the demand for the old product will fall when diminishing return must have set in on the product demand.

5 0
3 years ago
True or false: forecasts are set on the marketing budget detail spreadsheet.
Sladkaya [172]
The statement above is true. Forecasting is the utilization of notable information to decide the heading of future patterns. Organizations use estimating to decide how to apportion their financial plans or plan for expected costs for an up and coming timeframe. This is regularly in view of the anticipated interest in the products and ventures they offer.
4 0
3 years ago
Read 2 more answers
The balance in Accounts Receivable at the beginning of the year amounted to $16,000. During the year, $64,000 of credit sales we
poizon [28]

Answer: $70,000

Explanation:

Accounts Receivable at the beginning of the year amounted to $16,000

During the year, $64,000 of credit sales were made to customers.

ending balance in Accounts Receivable amounted to $10,000, and uncollectible accounts expense amounted to $4,000,

The Amount to appear in the operating activities section of the cash flow statement is

$16,000+$64,000-$10,000= $70,000

8 0
3 years ago
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Gabe Industries sells two​ products, Basic models and Deluxe models. Basic models sell for $ 44 per unit with variable costs of
12345 [234]

Answer:

The correct answer is B.

Explanation:

Giving the following information:

Basic models sell for $ 44 per unit with variable costs of $ 25 per unit. Deluxe models sell for $ 52 per unit with variable costs of $ 25 per unit. Total fixed costs for the company are $1,323. Gabe Industries typically sells three Basic models for every Deluxe model.

First, we need to calculate the weighted sales participation:

Basic= 3/4= 0.75

Deluxe= 1/4= 0.25

Now, we need to calculate the weighted average selling price and variable cost:

weighted average selling price= (selling price* weighted sales participation)= (44*0.75 + 52*0.25)= 46

weighted average variable cost= (variable cost* weighted sales participation)= (25*0.75 + 25*0.25)= 25

Now, we can calculate the break-even point in units:

Break-even point (units)= Total fixed costs / (weighted average selling price - weighted average variable expense)

Break-even point= 1,323/ (46 - 25)= 63 units

4 0
2 years ago
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