Gifts would be classified as an unearned source of income
D) Business production is near full capacity and there is little unemployment.
C) there are not enough resources to produce all of the good and services that everyone wants.
Answer:
We sale 86 units in europe and 9 un the US to maximize revenue
Explanation:
Being revenue:
Qunatity EU x Price EU + Quantity US x Price US
we want to maximize this function:
givne the constrain Qe + Qus = 95
we solve using excel solver
Europe US Total
1 Quantity 86 9 95
2 Price 5.7 11
3 Revenue 490.2 99 589.2
we maximize D3 changing cells B2 and C2
Answer:
While setting the price of a product, managers must consider all of the following: A) cost of the whole marketing mix B) buying capacity of the customers C) profit it should bring the company D) transportation cost E) personnel cost to the company
Explanation:
Key factors in calculating the sale price can be:
- Costs are a major factor in determining the selling price and a way of forming a price that is primarily related to costs called “ground” because it represents the minimum at which the price can be set. It includes cost plus other costs with no projected or minimal profit;
- Demand/buying capacity as a key factor in price calculation is tied to a method called the "ceiling" because capacity exceeds the price limit that customers are willing to accept to get a product or service.
- Competition as a pricing factor refers to alternatives that customers can choose from, and competition allows them to do so;
Cost-based pricing has its sub-methods such is Cost plus method
The basic principle is to add a rate of profit to the sum of direct and indirect costs. This way price consider a profit to it should bring to company.
Direct costs include material and labor costs, and indirect or general costs comprise a portion of fixed indirect costs such as depreciation, administration costs, sales costs and other general costs.
Formula: price = Direct costs + Indirect costs + Rate of profit
