Based on the fact that Snowpeak Ski Resort offers prices for lifts that are barely over their marginal cost but still make profits from high equipment rental, the pricing strategy in use is Cross-subsidization.
<h3>What is Cross-subsidization?</h3>
This is a pricing strategy that allows a company to charge one group of customers a higher amount for goods sold or services rendered while charging another group of customers a lower amount for other goods and services.
The logic is that the profits from the higher priced goods will take care of the marginal profits from the smaller cost goods and services.
Companies do this because they know that there are services that they can offer that will be easier to sell to people at a higher cost than a lower one. This is what Snowpeak Ski Resort is doing by using the rental fee of equipment to make profits.
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Answer:
<u>Adjusting entries:</u>
April 30, legal fees
Dr Legal fees expense 3,500
Cr Legal fees payable 3,500
April 30, accrued interest
Dr Interest expense 3,000
Cr Interest payable 3,000
April 30, wages expense
Dr Wages expense 4,000
Cr Wages payable 4,000
<u>Subsequent entries:</u>
May 12, legal fees
Dr Legal fees payable 3,500
Cr Cash 3,500
May 20, paid interest
Dr Interest expense 6,000
Dr Interest payable 3,000
Cr Cash 9,000
May 3, wages expense
Dr Wages expense 4,000
Dr Wages payable 6,000
Cr Cash 10,000
Answer:
An electronic news portal that offers one complimentary month for something like a free trial service or an institution that offers a free bank account for 6 months are both instances of penetration pricing.
A pricing technique known as price skimming is establishing a premium charge when other rivals enter the market. For instance, the Playstation 3 was initially priced at $599 in the United States, but has now been lowered to around $200.
The correct answer is 1.2 minutes on each question.
Answer: Yes the contract is valid.
Explanation:
The United Nations Convention on Contracts for the International Sale of Goods (CISG) is a binding agreement between nations. It sets rules to govern commercial contracts between parties in different countries.
Article 11 of the CISG states that a contract of sale does not need to be in writing and may even be proved by witnesses to the contract.
In other words, agreements made in conversation are enforceable and as both France and Germany are parties to the CISG, the contract is valid.
