General Mills sold three
sizes of cereal cheerios at $2.99, $3.99, and $4.49 each. Selling
tactic used by the company is psychology pricing. General Mills used this
technique to
encourage customers to respond on emotional levels rather than logical ones.
<span>Setting
the price of the cereal at $2.99 is proven to attract more consumers than setting
it at $3.00, even though the difference is only $.01. Consumers are said to put
more attention on the first number on a price tag than the last. </span>
<span>The correct answer is C. Equipment loans are not usually tied to the redevelopment of the business real estate in any way. Equipment and real estate are two distinct classes of business assets. An equipment loan would, however, be tired to the equipment itself as the nature of the equipment would determine the amount of the loan. The equipment would also usually serve as collateral on the loan. The financial position of the borrow and the business's overall cash flow (but mainly its operating cash flow) would also be tied to the equipment loan in that these items would help the bank assess the risk of the loan and therefore determine the interest rate and terms of the loan.</span>
Answer:
The correct option is A,bonds Payable credit, $40,000
Explanation:
Overvaluation of bonds by $40,000 means that the carrying value of the bond was $40,000 more than its true worth,an adjustment needs to be passed in the bonds payable account by a way of debit in order to bring the bonds payable to its true value.
Debit entry is required in the bonds payable account because the account itself is a liability account that naturally has a credit balance,in order to reduce the balance, a debit of $40,000 is needed not a credit of $40,000 as shown by option A
Answer:
E) When Wood Co. begins using the land productively.
Explanation:
Wood Co. is the wholly owned subsidiary, and because of that the company should clearly recognize the profit when Wood Co. starts using this land.
Till the time Wood Co does not use it there are chances that it might sell it, further in that case only the profit from sales to third party will be recognized.
Therefore, when there is 100% assurance of using such land by the subsidiary then the holding company can recognize the profit on sale of such land.
Answer:
40 books revenue is maximized
Explanation:
Profit is maximized where Marginal cost equals Marginal Revenue. The revenue is maximized where 40 books are sold for the price of $16. The marginal revenue at this point equals the marginal cost. Profit will be maximized for the ABC Books if it sells 40 books at the price of $16 per book. Here Marginal cost is $10 and marginal revenue is also $10. This is profit maximizing point.