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3 years ago

Select the correct answers.

Business

1 answer:

Art [367]3 years ago

7 0

Answer: line extension

Explanation:

The action whereby the company plans to introduce new products in the market within its existing product category is referred to as line extension.

Line extension occurs when the brand name for an established product is used for a new item that is in same product category. This can be in form of added ingredients, colors, new flavors etc. An example is a manufacturer of soft drink who adds "apple flavor"manufacturer to its existing "orange flavor"

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Firm A and Firm B are the only two companies that sell mail-order DVD rental subscriptions. For several years, Firm A priced its

sveta [45]

Answer:

b. Firm A engaged in predatory pricing.

Explanation:

Since Firm A and B are the only two companies that sell mail-order DVD rental subscriptions.

Firm A decided to price its subscriptions below average variable cost thereby causing Firm B to also sell subscriptions below average variable cost, but they went bankrupt and exited the market. Firm A then raised prices by 40% and is currently earning large, positive economic profits.

Based on this information only, an argument can be made that Firm A engaged in predatory pricing.

Predatory pricing is a marketing or pricing strategy that involves lowering the cost of goods and services for a short-term, in order to lure competing firms to lower their price, thus causing them to go bankrupt and exiting from the market.

3 0

3 years ago

Prior to June 30, a company has never had any treasury stock transactions. A company repurchased 100 shares of its $1 par common

Viktor [21]

Answer:

June 30, repurchase of 100 shares:

Dr Treasury stock 4,000

Cr Cash 4,000

Explanation:

The other journal entries should be as follows

July 20, resale of 50 shares:

Dr Cash 2,300

Cr Treasury stock 2,000

Cr Additional paid in capital 300

August 1, resale of 20 shares:

Dr Cash 760

Dr Additional paid in capital 40

Cr Treasury stock 800

3 0

3 years ago

Suppose a worker is offered a wage of $8 per hour, plus a fixed payment of $100 per day, and she can use 24 hours per day. what

Allushta [10]

Suppose a worker is offered a wage of $8 per hour, plus a fixed payment of $100 per day, and she can use 24 hours per day. The Market rate of substituion between leisure & income is $8 per day.

Because the budget line FE describes the opportunities available to a worker who has $100 of nonlabor income per week, faces a market wage rate of $10 per hour, and has 110 hours of nonsleeping time to allocate between work and leisure activities This means that the person will choose the level of goods and leisure that lead to the highest possible level of the utility index given the limitations imposed by the budget constraint.

Leisure is the time when you are free from work or other duties and can relax.

Limitations the act of controlling the size or extent of something the act of limiting something.

Budget is a spending plan based on income and expenses.

To know more about the Leisure here

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3 0

2 years ago

The budget for the month of May was for 11,200 units at a direct materials cost of $19 per unit. Direct labor was budgeted at 28

rjkz [21]

Answer:

Direct labor price(rate) variance = $1,675 (unfavorable)

Direct labor efficiency variance = 0

Explanation:

As per the data given in the question,

Number of units = 11,200

cost = $19 per unit

Labor budgeted = at 28 minutes per unit

Total budget = $100,800

Actual output = 8,900 units

Direct material expense = $137,500

Direct labor expense = $81,775

As per the following formula,

Direct labor price variance = (Actual price - Standard price) × Actual hour

= ($81,775 ÷ 8900 × 2 - $100,800 ÷ 11,200 × 2) × 8,900 ÷ 2

= $1,675 (unfavorable)

Direct labor efficiency variance = (Actual hour - Standard hour) × Standard price

= (8,900 × 28 ÷ 60 - 8,900 × 28 ÷ 60 ) × $100,800 ÷ 11,200 × 2

= 0

5 0

3 years ago

The cash coverage ratio is used to evaluate the:Liquidity of a firmSpeed at which a firm generates cashLength of time that a fir

Studentka2010 [4]

Answer:

The correct answer is letter "C": Ability of a firm to pay the interest on its debt.

Explanation:

The cash coverage ratio is a metric that measures a company's ability to pay its financial obligations. Generally, the higher the coverage ratio the better for the business to meet its debt obligations. It is best to compare coverage ratios of companies in the same industry or sector in the economy. Comparisons across industries are not useful as companies in different industries use debt in different ways.

5 0

3 years ago