The first guys right it’s information overload
Answer:
Account Debit Credit
Unrealized loss (Equity) $12,000
Fair Value adjustment (Avaliable $12,000
for sale)
Explanation:
Given Data:
Long-term available-for-sale securities=$70,000
December 31, Securities fair values=$58,000
Required:
The necessary year-end adjusting entry related to these securities.
Solution:
Unrealized Loss occurred=$70,000-$58,000
unrealized Loss occurred=$12,000
Adjusting entry:
Account Debit Credit
Unrealized loss (Equity) $12,000
Fair Value adjustment (Avaliable $12,000
for sale)
Answer:
The break-even point in units will increase by 400 units.
Explanation:
Giving the following information:
Fixed costs= $60,000
Selling price= $4.00
Unitary variable cost= $1
First, we need to calculate the current break-even point for the current situation.
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 6,000 / (4 - 1)
Break-even point in units= 2,000 units
<u>Now, the unitary variable cost is $1.5</u>
<u></u>
Break-even point in units= 6,000 / (4 - 1.5)
Break-even point in units= 2,400 units
The break-even point in units will increase by 400 units.
The internet is playing an important role in helping organizations reduce expenses, because web applications can be used with minimum costs. For example:e-commerce - buying and selling goods and services over the Internet and fulfills the product information activity <span>using web-sites</span><span>.</span>
Answer:
An apparel company has introduced three different varieties of shoes at different price points. [Product line pricing]
A company that produces shampoos have now introduced dishwashing liquids in the market. [Brand extension]
A shoe company sells its floaters at a price that does not even cover its production cost. [Loss leadership Pricing]
A chocolate company introduces its new range of chocolates at a discounted price for limited stock only. [Promotional pricing]
Explanation
Product Line Pricing: This strategy of separating products into various price categories may or may not have anything to do with their cost. It, however, achieves the effect of making one seem of a higher quality than the other.
Brand Extension:
Brand extensions serve the primary purpose of maintaining brand dominance and or relevance in the mind of the consumers.
Loss Leadership Pricing: This strategy is often used to attract the attention of customers. As customers compare the price of this product with similar/competing products, it can even create a mindset with customers that the business has very cheap products. This ultimately leads to more purchases and ultimately an increase in the bottom line of the business. This strategy is seldom used in isolation. The business almost always makes up for this loss relying on the increased volume of sales or by marking up other products slightly.
Promotional Pricing:
There are consumers who are very price sensitive. This strategy by the nature of its design almost always attracts their patronage. Depending on the creativity of the Marketing Officer, this can be used to increase consumer loyalty.
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