<span>Carmex is using the Target Pricing strategy in order to be able to keep an higher price and yet having the desirable amount of sales. This strategy has three key points:
1) identifying the price at which a product will still be competitive
2) defining the profit to be made when selling the product, based on what demography is willing to buy
3) Finding the target price with the data previously found</span>
Answer:
Option (C) is correct.
Explanation:
Return on Equity (ROE) = ?
Using DuPont Model, the Return on Equity (ROE) is calculated by using the following formula
:
Return on Equity (ROE):
= Net Profit Margin × Total Asset Turnover × Equity Multiplier
= [Net Income ÷ Sales] × [1 ÷ Capital Intensity Ratio] × Equity Multiplier
= [$48,200 ÷ 947,100] × [1 ÷ 0.87] × 1.53
= 5.0892% × 1.1494 × 1.53
= 8.95%
Answer:
Explanation:
A Contract for Deed refers to the tool which allows buyers who do not qualify for conventional lending, or buyers who are in need of a faster financing option to purchase a property.
The seller will still retain the legal rights to the property until the balance of the payment is made. The legal rights are only transferred after the buyer has made the final payment.
Disadvantages Include:
- To the seller, clearing the title may take time and money if the buyer defaults on the contract.
- The seller can decide to foreclose on the property if the buyer defaults, and the buyer has no recourse against the seller.
Answer:
can be used to predict the impact on the economy of various events and policies.
Explanation:
Market demand curve can be determined by the horizontal summation of the various quantities for which, each buyer or consumer in a market is willing to pay for at different prices.
A market demand curve is used to graphically represent the quantity of goods demanded by all the buyers or consumers at different price points. Thus, the market demand curve is downward sloping due to the fact that as the price of a product increases, the quantity demanded by the consumer decreases.
Demand and supply forms the core of market forces that determines prices and quantity.
In a market economy, supply and demand are important because they can be used to predict the impact on the economy of various events and policies.
