Answer: 2) It involves pricing products that can be added to the base product.
Explanation:
Optional-product planning is a method of pricing where the producer lure buyers in by selling at a cheap price which can sometimes even fall below their cost price. These products however can not be fully utilized alone or as they are. They require accessories.
This is where the company hopes to make up the profit. They charge low on the main product, then hope to make up the cost when you buy the accessories. An example would be Printers and ink.
This is a risky method of selling and so needs the accessories to be priced in such a way that the company makes no losses.
Answer:
$2.51
Explanation:
Gena Manufacturing Company calculation for contribution margin unit
Using this formula
Fixed cost + Tax profit/Estimated sales units
Let plug in the formula
Where:
Fixed cost =$259,000
Tax profit=$126,034
Estimated sales units=153,400
Hence:
(259,000 + 126,034) / 153,400
=$385,034/153,400
= $2.51
Therefore the contribution margin that is required to attain the profit target will be $2.51
C. To keep the soil fertile
the ashes somehow replenishes the soil thus providing nutrients for future crops. If they didn't do this, the soil would be depleted. They also rotated crops so that they didn't deplete the soil.
Hopefully this helps.
Answer:
The answer is D.
Explanation:
Sinking funds require the issuer(borrower) to set aside assets at specified amounts to retire the bonds at maturity. Sinking fund helps the issuer to secure a bond with lower yield.
An agreed amount is deposited at an agreed period (e.g yearly) so as to pay of the par value or principal value at maturity.
