Answer:
E. $63,401
Explanation:
gain on disposal = salvage value of plant - book value on date of sale
= $5,790 - $4,820
= $970
tax on disposal = $970*35%
= $339.50
after tax salvage value = $5,790 - $339.50
= $5,450.50
total cash flow in 4 years
= annual operating cash flow + net working capital + after tax salvage value
= $53,500 + $4,450 + $5,450.50
= $63,401
Therefore, The Year 4 cash flow is $63,401.
Southwest Airlines offers vacation packages that include airfare, car rental, and lodging. Southwest is using a(n) <u>bundle </u>pricing strategy.
What is bundle pricing ?
A pricing strategy in which managers offer multiple products or services as a single package ("bundle") is called bundle pricing.
Motivation of bundle pricing:
Particularly useful if your customers' demand is highly variable but price discrimination is impractical.
When consumers' price sensitivity of demand varies widely and market conditions make price discrimination difficult
If customers have diverse tastes, it can increase the seller's profit.
It is a method of simulating perfect price discrimination when perfect price discrimination is not possible or when charging multiple prices for the same product is illegal.
Types:
Simple Bundling: When managers offer multiple products or services in a single package so that customers do not have the option of purchasing package components separately
Mixed Bundling: Allows customers to purchase package components as a whole or separately.
Learn more about bundle pricing here: brainly.com/question/23175408
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They are considered a buyer in the ordinary course of business.
Jasper could most certainly claim depreciation on the computer that is, 50% of it plus 50% of the purchase price and I know because I am self-employed too and I know that legitimate office expenses like a new printer, printer paper etc can be claimed according to the amount used for the business.
