Answer and Explanation:
There are two main pricing objective and strategy i.e competitive pricing and penetrative pricing which are explained below:
1. Competitive pricing :
In this Agatha's Inc, all five rivals should evaluate pricing models for a related kind of product. If your product has a little more value added than your collegaues, then you can establish a target price target that is higher than the competitors.
Now to do that, it's necessary to send the customer a message that they're purchasing value for a price.
2. Penetrative pricing :
When the target price is set on the basis of the competitive pricing model , it is important to obtain the product favourably from the consumer and to do so you can start selling a little lower than the target price and sell the goods as a discount or promotional deal.
If the initial sales are strong and buyers like the product then return the product to target pricing and do intensive marketing to sell the message that the product 's cost is a bargain for the value provided by the company.
The mixture of the above two pricing strategies would ensure a better positioning of Agatha's Inc product with better profitability.
A tax that is considered fair by most people in a society is where the tax rate is progressive so that the more a person earns the higher rate of tax they pay and on the opposite end of the scale those with low income should pay very little if any. The other very important factor which is involved is is what are the taxes spent on? If they are mainly spent on meeting the needs of the most dispossessed people plus the basic needs of the general society for health care, education and housing then that is very important too.
Answer: 7600
Explanation:
The estimated cost of the ending inventory would be calculated as thus'
First, we have to calculate the cost to retail percentage which will be:
= cost/retail price
= 38000/50000
= 0.76
The cost of sales would be:
= net sales × cost to retail percentage
= 40000 × 0.76
= 30400
Then, the ending inventory would then be:
= 38000-30400
= 7600
a. resources can be moved where they're needed-------trade
Trade includes the exchange of products or administrations starting with one individual or substance then onto the next, regularly in return for cash. A system that permits exchange is known as a market.
Trade is a fundamental financial idea including the purchasing and offering of products and ventures, with remuneration paid by a purchaser to a dealer, or the trading of merchandise or administrations between parties.
b. workers have an incentive to improve their skills-------competition
Competition is the basic driver of execution and advancement. It benefits everybody by empowering us to browse a variety of fantastic items at reasonable costs. Competition additionally supports the selection of advancement as organizations develop and new thoughts prosper in the commercial center.
Customers remain to pick up the most from more prominent competition in the data innovation (IT) advertise. Reasonable and open competition implies bring down costs and more noteworthy decision.
c. wasted movements are eliminated-------------specialization
Specialization is a strategy for generation whereby a substance centers around the creation of a restricted extent of products to pick up a more prominent level of proficiency. Numerous nations, for instance, represent considerable authority in delivering the products and ventures that are local to their piece of the world, and they exchange for different merchandise and enterprises. This specialization is, subsequently, the premise of worldwide exchange, as couple of nations have enough generation ability to be totally self-maintaining.
Answer:
1. Margin = 8%
2. Turnover = $7,500,000
3. Return on Investment = 12%
Explanation:
Sales for the year = $7,500,000
Net Operating Income = $600,000
Average Operating Assets = $5,000,000
1. Therefore, Margin = ( Net operating Income/Total Sales ) 100 = 8%
2. Turnover = Sales for the period = $7,500,000
3. Return on Investment = Net Income/Average Operating assets
= $600,000/$5,000,000 = 12%