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vovikov84 [41]
3 years ago
14

Regarding the Cost-Plus pricing, which of the following statement is NOT true? It is a pricing strategy liked by the Finance dep

artment It supports price differentiation It calculates the price based on the cost plus a standard margin It is an entirely inward-focused strategy that has nothing to do with the market and competition
Business
1 answer:
Maru [420]3 years ago
4 0

Answer: It supports price differentiation

Explanation:

Cost-plus pricing works by adding a standard margin to the cost of producing or acquiring a good. The margin will be the gross profit per unit.

This does not support price differentiation because it would lead to the same price being charged to all customers for the goods regardless of who the customers are, whereas price differentiation calls for different types of customers to be charged different prices.  

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If there are diminishing returns to capital, then increases in the capital stock
Valentin [98]

Increases outputs by smaller and smaller amounts.

Diminishing returns means that at a certain point with all other factors equal, increasing the inputs will yield more and more decreased outputs.

4 0
4 years ago
Type the correct answer in the box. Spell all words correctly.
nikdorinn [45]

Answer:

Cold-calling is the prospecting step of selling.

8 0
3 years ago
Item 12Item 12 On April 1, Snell Company made a $50,000 sale giving the customer terms of 3/10, n/30. The receivable was collect
aivan3 [116]

Answer:

See explanation section

Explanation:

We know, 3/10, n/30 means the customer will get 3% discount if he/she gives the payment within 10 days, however, he/she has to pay the money within 30 days.

As Snell company sold the products on April 1, and received the payment on April 8, the company gave a 3% discount to customer. As there is discount, the financial statements will be as follows:

Income statement

Sales   =                        $50,000

Less: Sales discount =     (1,500)

<u>$50,000 × 3%                              </u>

Net sales                       $48,500

8 0
3 years ago
The shareholders need to earn 20%. The firm can borrow at 5%. The risk free rate is 2%. The tax rate is 40%. Find the weighted a
lbvjy [14]

Answer:

11.5%

Explanation:

The computation of the weighted average cost of capital is shown below:

= Weightage of debt × cost of debt × ( 1- tax rate) + (Weightage of  common stock) × (cost of common stock)

= (0.50 × 5%) × ( 1 - 40%) +  (0.50 × 20%)

= 1.5% + 10%

= 11.5%

Basically we multiplied the weightage of capital structure with its cost so that the weighted average cost of capital could come

3 0
4 years ago
An electronics store runs very effective advertising to draw potential
rewona [7]

Answer:b

Explanation:

if you show that other companies profit from what you sell people would want to by the product

E.6.C

8 0
4 years ago
Read 2 more answers
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