Answer:
B, penetration pricing
Explanation:
Penetration pricing is a pricing strategy in which a manufacturer sets the price of its product low for a start so as to have a wide reach and acceptability in the market.
This pricing strategy is meant to make customers ditch their usual product for the new product, thereby having the new product attracting customers to itself.
Ultimately, penetration pricing increases market share of the new product manufacturer as it gains a lot of customers within the shortest possible time.
Penetration helps to discourage new product entrance into the market thus giving the product a large/high stock turnover throughout the product's distribution channel.
In the above question, Frito lay introduced its chips at a low price of 69cents for a period of time (first few months, say 3 or 4 months for example) in order to gain market share quickly.
Cheers
Answer:
<em>Entrepreneurs are people who take the risks of organizing productive resources to make goods and services. Profit is an important incentive that leads entrepreneurs to accept the risks of business failure.</em>
The above is an example of directing
Directing is one of the responsibilities of a management
accountant. It involves governing the operations of a company in a particular
direction. It is a process through which the manager guides the performance of
workers to achieve set goals.
Answer:
$176 million
Explanation:
The calculation of net cash inflows from financing activities is shown below:-
Net cash inflows from financing activities
Proceeds from issuance of preferred stock $254 million
Proceeds from issuance of subordinated bonds $292 million
Less: Cash dividends paid on preferred stock (86) million
Less: Cash paid to retire note ($112) million
Less: Common shares acquired for treasury (172) million
Net cash inflows from financing activities $176 million
The positive sign represents the cash inflow and the negative sign represents the cash outflow
Answer: The Southern Corporation manufactures a single product and has the following cost structure:
Explanation:
Fixed costs per year: Production$98,770 Selling and administrative$86,920 Last year, 5,810 units were produced and 5,610 units were sold. There was no beginning inventory. The carrying value on the balance sheet of the ending inventory of finished goods under variable costing would be:
