There are different types of pricing strategies: penetration pricing (entering the market with a low price), economy pricing (low marketing and low prices), premium pricing (when the price is higher than the competitors), psychological pricing (example $99, instead of $100), demand-based pricing (based on the demand of the customers).
<span>Delta airlines prices its tickets so that it is less expensive to travel between midnight and 5:00
a.m. than during the day, when there is heavy business travel. this illustrates demand-based pricing.</span>
Answer:
An increase in sale for 90 units, will increase the net income for 1$,170
Explanation:
<em>We are not given with any information of additional cost or special price for this units, so we use the current values.</em>
So we simply multiply the contribution per unit by the increase in sale.
Contribution Margin x Δ sales = Δ income
13 x 90 = 1,170
Each unit contributes with 13 additional income, there are 90 additional units
Total income added 1,170
Answer:
Allocated administrative cost for mixing is $81000
And allocated administrative cost for for bottling is $81000
Explanation:
We have given total number of employs for mixing = 350
And total number of employs for bottling = 350
Administrative cost = $162000
So total number of employs = 350+350 = 700
So allocation base for mixing 
So allocated amount for mixing = 0.5×$162000 = $81000
Allocation base for bottling =
So allocated amount for bottling = 0.5×$162000 = $81000
Answer:
b. complement goods
Explanation:
Complement goods -
These are the type of goods , that are related to each other in a certain manner , is referred to as complement goods.
These type of good are also referred to as paired goods or associated goods .
In case of complement goods , if a person buys first good , then he might require the second good too.
These goods can even alters the prices of each other .
For example ,
people buying a CD player , need to buy the corresponding CD too , and hence ,
CD player and CD are complement goods.
Hence , from the given scenario of the question,
The correct option is b. complement goods .
A complementary good is a good whose use is related to the use of an associated or paired good. Two goods (A and B) are complementary if using more of good A requires the use of more of good B.
Answer:
132,000$ will be recorded by west as amortization expense for the year.
Explanation:
Depreciation/amortization is systematic allocation of cost of asset over its useful life. In this case asset cost is not given so we assume that PV of lease payment is equal to market value (660,000 dollars) of asset.
In case of leased asset the useful life taken for calculation of depreciation is lower of 1) Useful life 2) Lease term as per applicable accounting standards.
So we have taken 5 years to charge depreciation on Straight line method.
Hence by dividing 660000 by five we get our answer.
