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3 years ago

I will pay 5$ to the who solve it

Business

1 answer:

elena55 [62]3 years ago

4 0

Answer:

a. The price that the company should sell the new toy at if it prices at cost plus profit at 100% profit markup is:

= $20.

b. The price that the company should sell the new toy at if it prices using competitive pricing is:

= $22.50 (average of competitors' prices)

c. The price that the company should sell the new toy at if it prices using penetration pricing is:

= $20 (lowest market price)

d. The price that the company should sell the new toy at if it prices using price skimming is:

= $25.

Explanation:

a) Data and Calculations:

Cost of producing a new toy = $10

Competitors' prices are:

Product A – $25

Product B – $20

Product C – $23

Product D– $22

Total = $90

Average price = $22.50 ($90/4)

Cost = $10

Markup 10 ($10 * 100%)

Price = $20

b) An important consideration in the pricing of products is customers' and competitors' reactions to the firm's selling price. The purpose of considering customers is to ensure that enough demand is generated to cover production cost and make profits. Competitors can wage price wars to discourage new entrants into their markets. Many pricing methods are in use, depending on the prevailing market realities.

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Economists normally assume that the goal of a firm is to

Elina [12.6K]

Answer:

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Explanation:

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3 years ago

Julia is preparing the balance sheet for her company. building and land are the only two assets classified as property, plant, a

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3 years ago

General motorsâ€™ stand against apartheid in south africa was based upon what came to be known as _____. the human rights moveme

vovikov84 [41]

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3 years ago

In its first month of operation, Tamarisk, Inc. purchased 230 units of inventory for $8, then 330 units for $9, and finally 270

aivan3 [116]

Answer:

Phantom profit= $500

Explanation:

Giving the following information:

Purchased: 230 units for $8

Purchased: 330 units for $9

Purchased: 270 units for $10.

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3 years ago

A large increase in the supply of hd-tv sets occurs simultaneously with a smaller decrease in its demand. as a result the equili

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3 years ago