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2 years ago

What is penetration pricing?

Business

1 answer:

Setler [38]2 years ago

8 0

Answer:

A. The approach of lowering prices temporarily to gain market share

Explanation:

Penetration pricing is a strategy that marketers use to quickly gains market share of a new product. The strategy involves lowering the price of new products to woe customers to buy. The lowering of the price is temporary. Marketers use this strategy to introduce a product as a pocket-friendly alternative.

Penetration pricing is used where a product will be in competition with other existing brands. After the product has gain market share, marketers may increase the price to make profits.

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List the professional skills categories required for kinesiology practitioners to be successful

KatRina [158]

To be succesful, kinesiology practicioners need to:

- Master all the knowledge regarding human body and how they operate
- the ability to build relationship with other people so they could trust you as a client.
- Following/obeying all the ethical codes for the job
- Fulfill the expectation that patients had by suing their services.

4 0

2 years ago

The financial statements of Weston Office Supply include the following items:20172016Cash $43,500 $50,000Shortminus−term Inve

aivan3 [116]

Answer:

The current ratio is 1.18 times

Explanation:

Current Ratio: The current ratio is that ratio which shows a relationship between the current assets and the current liabilities

The computation of the current ratio is shown below

Current ratio = Total Current assets ÷ total current liabilities

where,

Total current assets = Cash + short-term investments + net accounts receivable + merchandise inventory

= $43,500 + $27,000 + $102,000 + $125,000

= $297,500

And, the total current liabilities is $251,000

Now put these values to the above formula

So, the ratio would equal to

= $297,500 ÷ $251,000

= 1.18 times

The long term note payable is not a current liabilities,hence it is not considered in the computation part.

6 0

3 years ago

You have been asked to help King Company make the necessary journal entry to record the purchase of office furniture for a $170

Marina CMI [18]

Answer:

Debit Office Furniture account $710

Credit Cash account $170

Credit Accounts payable $710

Being entries to recognize office furniture partly paid for.

Explanation:

When items are purchased using cash, the corresponding credits in such transactions are recorded in the cash account. Where the item is purchased on account (or credit), the credit is posted to accounts payable.

Total worth of the office furniture = $170 + $540 = $710

The total debit for this will be recorded in the office furniture account.

Hence to recognize the transaction,

Debit Office Furniture account $710

Credit Cash account $170

Credit Accounts payable $710

Being entries to recognize office furniture partly paid for.

3 0

2 years ago

Archie Co. purchased a framing machine for $45,000 on January 1, 2021. The machine is expected to have a four-year life, with a

k0ka [10]

Answer: $10,000 and $25,000

Explanation:

DEPRECIATION FOR 2022.

Straight line method of depreciation means it depreciates by the same amount every year. You can calculate by

(Cost - Residual Value) / useful life.

=($45,000 - $5,000) / 4

= $10,000.

Each year the framing machine reduces by $10,000 meaning in 2022 the depreciation will be $10,000.

BOOK VALUE AT DECEMBER 31, 2022

We've established that every year the value drops by $10,000.

On December 31, 2021, it dropped by $10,000.

On December 31, 2022, it dropped by another $10,000.

Adding that together gives you 10,000 + 10,000 = $20,000.

$20,000 is the total depreciation at the end of 2022.

Subtract that figure from the cost,

=$45,000-$20,000

=$25,000.

BOOK VALUE ON DECEMBER 31, 2022 is $25,000.

8 0

3 years ago

Tanek Corp.’s sales slumped badly in 2017. For the first time in its history, it operated at a loss. The company’s income statem

Levart [38]

Answer:

a) Break-even point in dollar for 2017

Contribution margin ratio = Contribution Margin/Sales

C.M Ratio = (Sales - Variable Cost)/Sales

C.M Ratio = $(2,500,000-1,750,000)/2,500,000

C.M Ratio = 0.30 or 30%

Break-even point in dollars = Fixed expense/C.M Ratio

B-E point ($) = $850,000/0.30

= $2,833,333.33

Alternative 1

Sales Price per unit after increasing 20%,

Sales Price = ($5*0.2) + $5 = $6

Total Sales ($) = (Sales Price x Sales Units)

Total Sales ($) = ($6*500,000) =$3,000,000

Contribution margin ratio = Contribution Margin/Sales

C.M Ratio = ($3,000,000- $1,750,000)/$3,000,000

C.M Ratio = 0.42 or 42%

Break-even point in dollars = Fixed expense/C.M Ratio

B-E point ($) = $850,000/0.42

= $2,023,809.52

Alternative 2

Commission = $2,500,000*5% = $125,000

Change in fixed annual salaries = $150,000-$60,000 = $90,000

Total fixed costs after deducting the changes in fixed salaries = $850,000-$90,000 = $760,000

Contribution margin ratio = Contribution Margin/Sales

C.M Ratio = (Sales - Variable Cost - Commission on sales)/Sales

C.M Ratio = ($2,500,000-$1,750,000-$125,000)/$2,500,000

C.M Ratio = 0.25 or 25%

Explanation:

Sales = $2,500,000

Sales Unit = $2,500,000/500,000 = $5

Variable Cost = 1,750,000

Fixed costs = $850,000

7 0

3 years ago