Answer:
The main advantage resulting from a premium pricing strategy is the higher profits. Another advantage is that customers that purchase premium products seek higher quality and tend to show higher brand loyalty associated with the status of using premium products. The disadvantages of premium pricing are that it cannot be applied to all products, the marketing efforts tend to be more specific, and therefore, represent a higher percentage of sales, and finally, not everyone is willing to pay premium prices.
Answer:
The answer is 51,500 units
Explanation:
Break-even sales is a point in which a business or a firm neither make profit nor loss. Total Revenue equals total cost. Break-even sales help to know the point at which business starts to make profit.
Break-even sales is:
Fixed cost/contribution margin.
Where contribution margin is sales price per unit minus variable cost per unit.
In the question, variable cost are decreased by $3.
So the new variable cost is $21 - $3
=$18.
Contribution margin is $24 -$18
$6
Therefore, The break-even sales (units) if the variable costs are decreased by $3 is:
$309,000/$6
=51,500 units
Answer:
d) $60,000 is released into working capital
Explanation:
Inventory turnover is the number of times that a firm buys and sells inventory. A high inventory means that the company sells its stock many times in a year.
the formula for inventory turnover ratio
=Cost of goods sold/ average inventory
If a firm has COGS of $800,000 and an inventory turnover of 5, then the average inventory will be
=$800,000 /5
=$160,000
If the firm improves its turnover to 8, then the average inventory will be
=$800,000/8
=$100,000
The firm average inventory will $100,000 as opposed to $160,000 previously.
$60,000 will be released to working capital.
Answer:
Adam smith is Abigail Smiths husband
Explanation:
They have been married for centies
