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2 years ago

Hich pricing strategy involves setting a high price for an exclusive, high-end product?

1 answer:

3 0

Yes, this encourages the buyer to pay more for an item especially if it is by a well known branded. This gives them to opportunity to brag and boast with their purchase. Also when the product is well known consumers are going to try their absolute best to buy it, this is going to make the product scare, hence increasing its price.

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Item 1 Manufacturing overhead was estimated to be $629,300 for the year along with 20,300 direct labor hours. Actual manufacturi

Neporo4naja [7]

Answer:

$31 per hour

Explanation:

The predetermined overhead rate is computed as

= Estimated manufacturing overhead / Estimated direct labor hours

Given that

Estimate manufacturing overhead = $629,300

Estimated direct labor hour = 20,300

Therefore,

Predetermined overhead rate

= $629,300 / 20,300

= $31 per hour

5 0

2 years ago

Question 4

SashulF [63]

1. The calculated capital budgeting techniques yielded the following results:

A. Accounting Rate of Return (AROR) is <u>28%</u>.

B. Payback Period Technique (PBP) is <u>5 years</u>.

C. Net Present Value Technique (NPV) is <u>RM33,588</u>.

D. Profitability Index (PI) is <u>1.056</u>.

2. The project should be accepted based on the positive results above.

3. The importance of capital budgeting techniques lies in the fact that they aid capital decision-making by measuring their probable outcomes.

<h3>What are capital budgeting techniques?</h3>

Capital budgeting techniques are capital investment evaluation tools.

Some of the capital budget tools include the Payback Period, Discounted Payment Period, Net Present Value, Proﬁtability Index, Internal Rate of Return, and Modiﬁed Internal Rate of Return.

These capital budgeting techniques help management to evaluate capital projects and to choose investment strategies.

<h3>Data and Calculations:</h3>

Investment cost = RM600,000

Cost of capital = 12%

Net Cash Flows PV Factor Present Value

Year 0 RM600,000 1 (RM600,000)

Year 1 RM100,000 0.893 89,300

Year 2 110,000 0.797 87,670

Year 3 121,000 0.712 86,152

Year 4 133,100 0.636 84,652

Year 5 146,410 0.567 83,014

Year 6 RM400,000 0.507 202,800

Present value of cash flows = RM633,588

Net Present Value RM33,588

Total Net Cash Flows = RM1,010,510

Average Net Cash flows = RM168,418 (RM1,010,510/6)

Accounting Rate of Return = Average Income/Initial Cost

= 28% (RM168,418/RM600,000 x 100)

Payback period = 5 years

NPV = Initial Investment - PV of net cash flows

= RM33,588

Profitability Index = Present value of cash flows/Initial Cost

= 1.056 (RM633,588/RM600,000)

Learn more about capital budgeting techniques at brainly.com/question/17159659

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8 0

1 year ago

In your own words, discuss GAP management and then suggest a way to reduce the impact of its limitation. Do not duplicate limita

vichka [17]

Answer:

Gap management is a strategy which every business follows. A business can be successful only if it sets goals for its future.

Explanation:

Gap management is the difference between where an organization stands today and where it wants to be in future. A company's management will set its own targets and then sets position of the company. There are limitation of gap management as there can be targets which are sometimes unachievable or there are some external forces which hinders the business progress.

5 0

2 years ago

For a 13-person team, how many extra workers should be hired to meet the labor hours needed without overtime

Paha777 [63]

For a 13-person team, The number of extra workers that should be hired to meet the labor hours needed without overtime is 7.

<h3>What is Labor hours?</h3>

This is a term that connote the total hours of workers that are said to be having or getting an hourly wage and they are the ones who are said to be directly employed on the site of a building, public works project, etc.

Note that "Labor hours" is one that entails hours of work that has been carried out by workers who have been employed by the general contractor or the subcontractors that are found to be working on the project.

Learn more about labor hours from

brainly.com/question/24868261

8 0

2 years ago

Which of the following is a risk (or potential pitfall) of cost leadership? Multiple Choice a. Cost differences increase as the

musickatia [10]

Answer:

d. Cost cutting in one area of the value chain might increase costs in another.

Explanation:

Although cost leadership is an efficient way to dominate the competition,it does have potential pitfalls if not executed correctly. For example, if operating cost is decreased, the changed product feature may imply a higher marketing cost afterward. In order to be truly efficient, the cost leadership strategy has to be implemented in such a way, so it doesn't impact other value chain costs negatively (increasing them).

6 0

2 years ago