It is A. Provide public goods
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Answer:
<h2>In this case,Huojin is basically using Life Cycle pricing strategy.</h2>
Explanation:
- In Economics, life cycle pricing strategy basically refers to the determination of any product or service price based on the position of the concerned product or service within its life cycle.
- In this instance,Huojin decides to charge higher price for its new product as the production or manufacturing is relatively high during the initial stages of the product.
- Later on during the product life cycle,the manufacturing or the making cost of the new product gradually decreases thereby,allowing Huojin to reduce the price of the product during the subsequent stages of the its life cycle.Such type pricing strategy is known as Life Cycle pricing strategy.
Answer: Negative Sales Mix Variance
Explanation:
With regards to the above question, the company has a negative sales mix variance. First and foremost, we should know that the sales mix variance simply has to do with the difference between the actual sales mix and the budgeted sales mix of a company or organization.
From the question, there'll be negative sales mix variance and this will bring about a reduction in the revenue of the company as the budgeted sales will be lesser than actual sales. Therefore, Profit also reduces.
Answer:
$71,644.27
Explanation:
Future value of the deposit in 19 years = Monthly deposit * [(1 + interest rate/12)^12*No. of years - 1] / (interest rate/12
= $90 * [(1 + 10%/12)^12*19 - 1] / (10%/12)
= $90 * [6.63346333924 - 1] / 0.008333
= $90 * 6.63346333924/0.008333
= $90 * 796.0474
= $71644.269835
= $71,644.27
Answer:
Free cash flow is $8,925,000
Explanation:
Free cash flow is the net cash cashflow available for the shareholders or for the reinvestment after paying all capital expenditure.
Free Cash flow
Earning Before Interest and Tax $10,400,000
Add: Depreciation expenses $1,000,000
Less: Capital expenditures $1,900,000
Less: Increase in net working capital <u>$575,000 </u>
Free cashflow $8,925,000