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3 years ago

What pricing strategies do Mcdonalds use?

Business

2 answers:

OleMash [197]3 years ago

8 0

Answer:

Explanation:

Across the world, McDonald's has implemented store-level pricing – which means every store's price will be slightly different from the next. Pricing parameters are set by the global HQ in Chicago and price limits are set up there too

I am Lyosha [343]3 years ago

5 0

Explanation:

<em>McDonald's uses the pricing approach, 'think global, act local'. They have proven to be affluent at using cost leadership pricing strategy by offering meals at low prices. Prices were kept low by: employing and training employees that are inexperienced instead of trained cooks.</em>

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Conrad wanted to offer high-quality meals in his restaurant. His motto was "the best darn meat and potatoes for miles

murzikaleks [220]

Given that Conrad's time of service delivery is slow, my advice to him would be that he has to address his quality and his service.

<h3>What is competitive advantage?</h3>

This term as it applies to the question has to do with the advantage that a business has over its competitors.

For Conrad to have this advantage they must try to serve their customers better and stop making them wait for too long.

Read more competitive advantage on here:

brainly.com/question/14030554

8 0

2 years ago

Laserscope Inc. is trying to determine the best combination of short-term and long-term debt to employ in financing its assets.

snow_lady [41]

Answer:

Laserscope Inc.

Return on Equity (ROE):

= $1,466,400/$18,000,000 * 100

= 8.15%

Explanation:

a) Laserscope's Return on Equity (ROE) is a financial performance measure, calculated by dividing the net income or Earnings After Tax (EAT) by its total shareholders' equity. It is usually expressed as a percentage. So the above calculation is further multiplied by 100.

b) Data and Calculations:

Current assets = $16

Fixed assets = $20

Total assets = $36

Debt ratio = 50% of $36 million = $18 million

Therefore, Stockholders' equity = 50% (1 - 50%) or $18 million

EBIT = $4.1 million

Short-term debt = $6 million

Long-term debt = $12 million

Interest on short-term debt = $420,000 (7% * $6 million)

Interest on long-term debt = $1,236,000 (10.3% * $12 million)

Total interest expense = $1,656,000

Earnings before interest and taxes = $4,100,000

Interest expense 1,656,000

Earnings before taxes 2,444,000

Company tax (40%) (977,600)

Earnings after taxes (EAT) $1,466,400

7 0

3 years ago

One of the great dangers in allocating common fixed Blank 1 of 1 costs is that such allocations can make a product line look les

lara31 [8.8K]

Answer:

One of the great dangers in allocating common fixed corporate costs is that such allocations can make a product line look less profitable than it really is.

Explanation:

Therefore, care must be exercised so that a product line is not eliminated because the common fixed costs have been allocated to it such that it becomes unprofitable. This is why it is necessary to identify activity cost pools into which such fixed costs can be accumulated and from which they can be allocated to product lines. Using ABC costing approach, for instance, offers a means of escape because the system tries to allocate costs based on the level of usage or consumption of such common costs by each product line instead of using arbitrary allocation formulas.

4 0

3 years ago

Classic Limo, Inc. provides limousine service to Tri-Cities airport. The price of the service is fixed at a flat rate for each t

Illusion [34]

Answer:

1) See the attached excel file for the analysis of the possible operating income for Classic Limo, Inc.

2) The scenario with the highest operating profit $280,500 which is Excellent with $40 Contribution Margin and 10,500 Numbers of Customers.

Explanation:

1) Using the above information, construct an Excel spreadsheet to prepare an analysis of the possible operating income for Classic Limo, Inc.

Note: See the attached excel file for the analysis of the possible operating income for Classic Limo, Inc.

2) If you were manager of Classic Limo, Inc. and had to choose only one budget scenario to use for planning for the year, which one of the nine scenarios would you choose?

The scenario that would be chosen is the scenario with the highest operating profit $280,500 which is Excellent with $40 Contribution Margin and 10,500 Numbers of Customers.

Download xlsx

4 0

3 years ago

The language of price controls

mel-nik [20]

Answer:

1) The government prohibits gas stations from selling gasoline for more than $3.40 per gallon.

This statement is an example of price ceiling as the gas stations cannot raise their price above $3.40 but can sell it at any price lower than the ceiling price of $3.40. This is binding

2) Due to new regulations, gas stations that would like to pay better wages in order to hire more workers are prohibited from doing so. This is neither a price ceiling or floor as government isn't directly affecting the price with their policy

3) The government has instituted a legal minimum price of $3.40 per gallon for gasoline. This is an example of price floor and is binding. The reason it is a price floor is because the petrol stations cannot charge a price below $3.40 but can charge any price above the floor price of $3.40

Explanation:

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3 years ago