Answer and Explanation:
There are two main pricing objective and strategy i.e competitive pricing and penetrative pricing which are explained below:
1. Competitive pricing :
In this Agatha's Inc, all five rivals should evaluate pricing models for a related kind of product. If your product has a little more value added than your collegaues, then you can establish a target price target that is higher than the competitors.
Now to do that, it's necessary to send the customer a message that they're purchasing value for a price.
2. Penetrative pricing :
When the target price is set on the basis of the competitive pricing model , it is important to obtain the product favourably from the consumer and to do so you can start selling a little lower than the target price and sell the goods as a discount or promotional deal.
If the initial sales are strong and buyers like the product then return the product to target pricing and do intensive marketing to sell the message that the product 's cost is a bargain for the value provided by the company.
The mixture of the above two pricing strategies would ensure a better positioning of Agatha's Inc product with better profitability.
Answer:
$2,000 ordinary gain and $15,000 long term capital gains
Explanation:
Under the installment method, the taxpayer will recognize gains based on the installments that they actually receive, not the whole contract. This method is generally used for real estate transactions that involve installments payments during several years.
In this case, Mr A received $60,000:
$40,000 for inventory, so gain = $40,000 - $38,000 = $2,000 ordinary gain
$20,000 for real property (25% of transaction price) = $20,000 x [($40,000 - $20,000) x 25%] = $20,000 - $5,000 = $15,000 long term capital gains
Answer:
It is more profitable to maintain the price at $10
Explanation:
Giving the following information:
The souvenir sheets cost the postal service $1.15 each. St. Vincent has been selling these souvenir sheets for $10.00 each and ordinarily sells about 61,000 units. To test the market, the postal service recently priced a new souvenir sheet at $11.00 and sales dropped to 51,000 units.
We need to calculate the actual revenue and decide whether it is more convenient to increase the price or leave it as it is.
Actual revenue= 61,000 units* (10 - 1.15)= $539,850
New revenue= 51,000 units*(11 - 1.15)= $502,350
It is more profitable to maintain the price at $10
Answer:
Explanation:
The computation of expense amount is shown below:
= Expenses - adjusted prepaid expense + adjusted accrued expense
= $35,200 - $500 - $450
= $34,250
The adjusted prepaid expense is computed by
= Ending balance of prepaid expense - beginning balance of prepaid expense
= $1,800 - $1,300
= $500
And, the The adjusted accrued expense is computed by
= Ending balance of accrued expense - beginning balance of accrued expense
= $1,200 - $1,650
= -$450
Answer:Amount of supplies used =$400
Explanation:
Beginning balance of supplies $200
Supplies purchased $500
Ending supplies balance on hand $300
Amount of supplies used = Beginning balance of supplies + Supplies purchased - Ending supplies balance on hand
= $200 +$500 - $300
= $400 is amount of the adjusting entry to record the amount of supplies used in Anderson Corp.
