The pricing strategy that companies mostly use for luxury products is "Premium pricing".
Explanation:
- Premium pricing is a type of pricing strategy by which a high rate is fixed for a high quality product produced by that company.
- Premium pricing is also known as Prestige pricing.
- Rate and cost of most of the luxury and high quality product produced by a company will always tend to be higher in order to make sure that the company doesn't face any loss, On the other hand premium pricing is the key strategy for producing higher profit for a company.
- On the other it increases the brand value of that company and make them look significant based on their quality of product produced.
<span>Janice is in the middle of a distinct period of an abnormally and persistently elevated mood. In the last week she has cleaned her house from top to bottom (breaking windows and dishes in the process), bought a new car that she can't afford, and dug up most of her yard in case she might want a garden next year. Janice is experiencing mania. In psychology, mania is defined as a state in which some is having a great deal of excitement, euphoria, delusions and </span>overactivity. The situation described above shows that Janice is having overactivity and is being compulsive about her tasks.
Answer:
$17,667
Explanation:
Premium on bonds
= $454,000 - $450,000
= $4,000
Cash interest paid
= $450,000 × 8% × 6/12
= $18,000
Amortization of premium for each period
= $4,000 ÷ 12
= $333
Therefore,
Interest expense
= $18,000 - $333
= $17,667
Product price and average total cost.