All categories

3 years ago

Determining the price of goods should be done after calculating income and expenditure ??

Business

1 answer:

Vera_Pavlovna [14]3 years ago

3 0

Answer:

False

Explanation:

There are several methods that businesses use to determine the price of goods and services. The most common one involves first calculating the cost of production or the cost of goods sold. The desired markup is added to the cost. Other methods include the break-even analysis, target prices, and going by the market rate.

In all these methods, the price is determined selling starts. It means the price is set before selling starts. Therefore, income cannot be generated before a price is determined.

You might be interested in

Government spending will not crowd out private spending if:

yuradex [85]

There is an inflationary gap

I hope that helped

4 0

3 years ago

Select the most appropriate opening for a direct claim letter when the remedy is obvious. O Please send me a new Nintendo 3DS to

Illusion [34]

Answer:

Include original pertinent documents.

Explanation:

My Nintendo 3DS screen went blank, and I can’t play games on it anymore. I would like to ask for a new one. Please consider the fact that my Nintendo 3DS is still under full warranty.

7 0

4 years ago

Read 2 more answers

Your firm is preparing to open a new retail strip mall and you have multiple businesses that would like lease space in it. Each

riadik2000 [5.3K]

Answer:

I would like to lease spaces to the following businesses:

Square Feet Expected Monthly

S-Mart 12,000 $180,000

WalVerde Drugs 6,000 147,000

Videos Now 4,000 70,000

They have the highest monthly expected cash flows to be able to pay the monthly rent. Another reason is that the variable part of the rent depends on each business's monthly gross sales. The higher the gross sales, the higher the rent. They also require the highest square space on which the fixed element of the rent depends.

Explanation:

a) Data and Calculations:

Square Feet Expected Monthly

Business Name Required Cash Flow

Videos Now 4,000 $70,000

Gords Gym 3,500 52,500

Pizza Warehouse 2,500 52,500

Super Clips 1,500 25,500

30 1/2 Flavors 1,500 28,500

S-Mart 12,000 180,000

WalVerde Drugs 6,000 147,000

Multigular Wireless 1,000 22,250

Space available for leasing = 15,000 square feet

S-Mart 12,000 $180,000

WalVerde Drugs 6,000 147,000

Videos Now 4,000 70,000

6 0

3 years ago

Standard cost systems ______. are rarely used in practice in well-established businesses help managers budget and control costs

ziro4ka [17]

Answer:

what managers think costs should be

Explanation:

Standard cost systems are based on what managers think costs should be as opposed to actually using the prices based on what they should be. The managers accomplish these prices by estimating the costs that will be incurred by the business during the production process and then creating the costs based on their estimations.

3 0

3 years ago

Suppose that Tan Lines' common shares sell for $20 per share, are expected to set their next annual dividend at $1.00 per share,

Verizon [17]

Answer:

Cost of equity = 10.6%

Explanation:

<em>According to the dividend valuation, the value of a stock is the present value of expected future dividends discounted at the required rate of return.</em>

<em>The model can me modified to determined the cost of equity having flotation cost as follows:</em>

Cost of equity = D(1+r )/P(1-f) + g

d- dividend, p- price of stock , f - flotation cost , - g- growth rate in dividend

D-1.00, p - 20, f- 10%, g- 5%

Applying this to the question;

cost of equity - 1.00/(20×(1-0.1) )+ 0.05

= 10.6%

Cost of equity = 10.6%

3 0

3 years ago

Determining the price of goods should be done after calculating income and expenditure ??​

Determining the price of goods should be done after calculating income and expenditure ??