Answer:
e. does not always lead to high prices.
Explanation:
Profit-maximization pricing means fixing prices so that total revenue is more as compared to total costs. This pricing strategy is used by a monopolist.
It is the short run or long run process by which the price and output level is determined by the firm that can give the maximum profit.
The price per item has been set higher than its total cost of production make to sure that the company makes a profit on each sale. As a result, the company makes a profit on every sale and to reduce risk and uncertainty factors in business operations.
Profit maximization pricing objective <u>does not always lead to high prices</u>.
Answer:
The cost of ending inventory is $24314.
Explanation:
Under the average cost method, the inventory is valued at the average cost of all the inventory that is available from the start of the month and the purchases made.
The average cost of inventory can be calculated by summing up the total cost of beginning inventory and purchases and dividing it by the total number of units available for sale.
Average cost per unit = [ 480*65 + 720*68 + 360*70 ] / [480 + 720 + 360]
Average cost per unit = 67.538 rounded off to $67.54 per unit
The total inventory available for sale = 480+720+360 = 1560 units
The ending inventory in units = 1560 - 1200 = 360 units
The cost of ending inventory = 360 * 67.54 = $24314.4 rounded off to $24314
Answer:
True
Explanation:
A partnership is a type of business owned by two or more individuals known as partners. The partners join forces to exploits their talents and resources and profit from the business. A partnership may comprise of general and limited /silents partners.
The general partner participates in the day to day activities of the business. He or she makes business decisions on behalf of the partnership. Because a general partner is actively involved in managing the business, he has unlimited liability to its obligations. Should the partnership fail to meet its obligation, the assets of a general partner sold to settle the debts. He or she need not have been involved in creating the liability.
No one is able to get any profit
