Maria recently put her house on the market at an asking price of $260,000. She realizes, however, that in order to sell the house, she may have to use price skimming
<h3>What is
price skimming?</h3>
Price skimming is a pricing strategy that a company can use when launching a new product or service.
Price skimming is commonly used for new technologies. DVD players are an excellent example of this. When DVD players first became available in the late 1990s, they could cost up to $1,000. If you do a quick search on Amazon, you'll find that a new DVD player costs only $33.
The pricing strategy will be influenced by the stage of the product's life cycle. The process of charging a relatively high price for a product is referred to as price skimming. When a product is new to the market, skimming is commonly used (in its introduction or growth phase)
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Answer:
Explanation:
See attached file for answer
Answer:
6,440 units
Explanation:
Smith's break-even point is: 6,440 units
Answer:
The amount of $25,000 will be recorded as the Cash Dividends
Explanation:
The amount which is to be recorded as the cash dividend is computed as:
Cash Dividend = Number of Shares × Rate per share
where
Number of shares is computed as:
Number of shares = Issued Shares - Treasury Stock
= 30,000 - 5,000
= 25,000
NOTE: No dividend is paid on treasury stocks, so the the shares of the treasury stocks are subtracted.
Rate per share is $1
SO, Putting the values above:
Cash Dividend = 25,000 × $1
= $25,000
