Predatory pricing is a dangerous and doubtful pricing strategy
where a product or amenity is fixed at a very small price, proposing to drive opponents
out of the market, or make barriers to access for potential new opponents. The
company expressively raised its prices after its competitors were forced out of
the market. And the company purposely set its prices below its average variable
costs. This can prove that a business is engaged in predatory pricing.
Answer:
By using the percentage-of-completion method the $64 million revenue should Parmac recognize in 2018
Explanation:
Percentage-of-completion method : Under this method,
First we have to calculate the percentage which is based on current period cost to total period cost.
After that, multiply the percentage with the revenue so that we get to know how much revenue is being recognized during an particular year.
In mathematically,
Estimated Cost percentage = current period cost ÷ total period cost
= $48 million ÷ $120 million
= 40%
Now,
Revenue recognized = Estimated cost percentage × Revenue
= 40% × $160 million
= $64 million
Hence, by using the percentage-of-completion method the $64 million revenue should Parmac recognize in 2018
Answer:
$25,400
Explanation:
Average for first 11 months = $20,600
Total amount for first 11 months = 11 x $20,600 = $226,600
Average for 12 months = $21,000
Total amount for 12 months = 12 x $21,,000 = $252,000
Amount received in December = $252,000 - $226,600 = $25,400
The organization received $25,400 in donations during December
