Answer: Razor and blade strategy
Explanation:
The Razor Blade Model is a model that is used by companies to deeply discount or give away a core product hoping that the consumers will buy the more expensive and complementary dependent products.
The razor and blades business model is a model whereby one item is sold at a cheaper price or sometimes given for free so as to increase the sales of its complementary good. For example, ink catridges are required for inkjet printers and software and accessories are used for game consoles. So, selling ink catridges at a low rate can lead to more sales for inkjet printers.
Answer:
Cost of goods sold to be reported in consolidated financial statement = $1,000,000
Explanation:
Whenever there is 100% or more than 50% holding in a company, then equity method is followed under which all of the items are to be consolidated, but in case where there are inter transfers that is transfer from holding to subsidiary or vice-versa then such transactions, profit not realized is to be eliminated.
In case where inventory is transferred to subsidiary after adding profit by holding company, then in case if that inventory is sold to third party by year end then entire profit is recognized even the profit added by holding to cost of goods sold to subsidiary.
Where in case such inventory is not sold further by subsidiary to third party and is still held in the stock then such profit added on sale by holding to subsidiary is eliminated.
In our case the entire inventory is sold to third party by the year end.
Therefore, entire profit will be recognized and cost of goods sold to be shown in consolidated financial statements = $600,000 + $400,000 = $1,000,000.
Answer:
$8,693
Explanation:
Effective annual interets rate: AI = (1+i/m)^n - 1
i = 3*2=6%, m = 26
AI = [1+6%/26]^26 - 1
AI = 1.0617 - 1
AI = 0.0617
Let semi annual income be $X. So, present value of four semiannual income will be aggregated to get principal invetsed money of $30,000
30,000 = ∑[X/1.0617^n}
30,000 = 3.451 * X
X = 8693.132425383947
X = $8,693
Therefore, firm have to earn $8,693 after every 6 months at an interest rate of 3% per week to recover $30,000 initial investment in 2 years
Answer:
c) Counteroffer
Explanation:
A counteroffer determines this when an offer is being created for the purpose of the earlier offer by another person during the negotiation for creating the ending contract. To make the counteroffer is to reject the previous offer and is created under the terms of the counteroffer or there will be no contract.
Here according to the given scenario, Jack makes the offer in the condition that he needs only microwave, refrigerator, and window treatment and this will be a sale part. Now, Padilla who is selling the home is accepting the terms of Jack with the condition that the refrigerator will remain in the home. So, this case is called the counter offer.
