A fixed cost is?
Q: To what extent is the price most important factor in ensuring a company can maximise profits
A: The price of a product is vital in ensuring a company can maximize profits in the market. Price is…
Q: When a carmaker offers different types of models under a particular brand, such as the Mitsubishi…
A: When a car maker offers different variant for a particular brand then it is an example of Product…
Q: German discount supermarket chains with over 10,000 stores keeps costs low so that it can offer…
A: The question is related to Pricing the product.
Q: 1. Consider a familiar product, such as Apple’s iPhone. What would you consider to be its next…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: A company that manufactures cars would use about 50,000 steering wheels per year. Such steering…
A: Given data Annual demand (D) = 50,000 units or steering wheels per year Ordering cost (S) = P1250…
Q: How do total variable costs, total fixed costs, average variable costs, and average fixed costs…
A: The following changes happen as the cost driver increases and vice versa:
Q: What are the advantages of having price leaders?
A: Price leadership, in marketing, is a pricing method set forth by marketers to entice more customers.…
Q: Assume you are the finance officer of a private school; due to pandemic the revenues are declining.…
A: Pricing decisions are the decisions made by businesses when determining the price of their products…
Q: Price Resistance often surfaces during the negotiation phase of any sale. Firstly, what in your…
A: Price negotiation means making any attempt by the buyers to reduce the price while making the final…
Q: If the unit selling price is P16, the unit variable cost is P12, and fixed costs are P160,000, what…
A: The question is related to Cost Volume Profit Analysis.Breakeven sales is that level of sales at…
Q: You are on a team designing a new hybrid SUV. Describe how each costing method might be applied.…
A: The technique, style, or tactic used by an organization to collect cost data more appropriately is…
Q: Comment on “Price is a measure of the product’s quality and performance.” Prove your answer and cite…
A: PRICE: Price refers to the actual amount paid by the customers in exchange for the goods or…
Q: With an overall cost of goods totaling $64,000 and sales of $181,000, what is the food cost…
A: Food cost percentage is a proportionate measurement between total inventory cost and total sales.…
Q: Why setting the right price is essential?
A: Pricing is the process of determining the value that a manufacturer will receive in exchange for…
Q: Under cost-plus pricing, the more price elastic the demand is for a product, the higher the markup…
A: Cost-Plus pricing is a pricing technique that is used commonly in many industries, for the reason…
Q: Price: What is the price for coca-cola
A: PRICING STRATEGY OF COCA COLA The amount of money charged for a product or service, or sum of the…
Q: Assuming A&F’s gross profit margin is 60 percent and cost of goods sold represents the only…
A: Assuming A&F’s gross profit margin is 60 percent and cost of goods sold represents the only…
Q: Can only variable costs be differential cost.? If yes how is that possible, if no how is that…
A: No, variable costs are not always differential cost.
Q: Explain with examples, what is direct cost and indirect cost
A: Direct costs Direct costs are operational expenses you can straightforwardly apply to deliver a…
Q: A business wants to capture market share in a short period of time priced its services at a…
A: A pricing strategy is a model or strategy used to build up the best price for an item or service. It…
Q: What do you call a price which is artificially imposed by law? a. Rounded price b. Rectangle price…
A: Artificial prices are imposed by law in order to set upper and lower price limits so as to ensure…
Q: n pricing a product cost work as a floor and customer perception of the value of a products works as…
A: value-based pricing can be defined as a strategy for pricing goods or services that adjusts the…
Q: Because full costing is accepted for financial reporting purposes and variable costing is not,…
A: Absorption costing includes all costs related to production, including fixed costs while variable…
Q: 1. The price of a music player originally sold at Php3,500.00 is reduced to Php2,800.00. What is the…
A: 1. In the provided question, the discount rate is 20%. Comment: Since you have posted multiple…
Q: Why or why not should food and wine be in a similar price range when matching them
A: Price is more of a psychological concept where it acts as a perceived value in the eyes of the…
Q: Many Firms offer a “Buy 4, Get 1 Free” card to encourage customer loyalty What is the price…
A: 1) Price segment concept that support such an offers - Price segment process is generally means when…
Q: How are fixed costs different from variable costs? A. Variable costs are always higher than fixed…
A: The fixed costs could include Rental expenses, depreciation, tax expenses, all these costs are…
Q: What are the three possible starting points for the process of setting an initial price as…
A: There seem to be varied instances within which a vendor ought to devise a price for an item that…
Q: what is price point and can you give an example?
A: Pricing is one of the important jobs which has to be done properly by the companies. It is because…
Q: The terms shadow price and reduced cost mean the same thing.
A: The correct answer is False.
Q: Price comparison sites such as trivago.com and pricegrabber.com havebeen created for a variety of…
A: The ability to check and compare the competitor's price in real time without much effort has been…
Q: Can variable costs be differential cost.? If yes how is that possible, if no how is that possible.
A: In an organization, there are different kinds of activities going on. There are manufacturing…
Q: Which product life-cycle stage, if any, is the most important? Which stage is the riskiest? Which…
A: Product life cycle stage refers to the life span of the product throughout its existence at market…
Q: Assume a fixed cost of $900, a variable cost of $4.50, and a selling price of $5.50. What is the…
A: Given details: Fixed cost = $ 900 variable cost = $4.50 Selling price = $ 5.50
Q: Pricing Scenario: You just won a new laptop in a contest, and you decide to sell your old one. You…
A: Laptop is not a necessary good, so its demand is elastic. More the change in price will lead to more…
Q: Should the company raise the price?
A: Process selection mainly depending the net profit earned by each of the method. Here, we can…
Q: When does the marginal cost decrease?
A: Marginal cost is nothing but the change in the overall cost that emerges when the quantity…
Q: What are the effects of the Just in Time system in Costing?
A: Just in Time System also popularly known as "JIT" is a method of managing inventory that helps…
Q: Explain the unethical issues of Marketing in Pricing (Price Gouging and Price…
A: The unethical issues of Marketing in Pricing are:
Q: Assume you are an entrepreneur of a new home technology product, how you can set your pricing…
A: A pricing policy is indeed a consistent response to a formal inquiry. A systematic approach to…
Q: What is the difference between variable cost and fixed cost?
A: The variable cost is the cost that is not constant or the same for a producer. The variable cost…
Q: Essay. How are you going to relate price setting in your real-life situation? Give a specific…
A: Pricing refers to a marketing strategy in which a marketer makes strategies to determine the price…
Q: why the selling carrer of a etreprenuer depends on the buyers?
A: Entrepreneur is a person who takes an initiative to convert their business idea into reality. They…
Q: Why fixed cost does not change when there is a change in sales? explain
A: From the word itself, it can clearly be comprehended that the cost which is fixed and remains…
Step by step
Solved in 2 steps
- is pricing policy an appropriate mechanism to control inventory levels? If so how should price be determined?Cost plus pricing is a logical method of pricing since it takes into account current demand, perceived value, and competition. TRUE OR FALSE?Explain the six-step process in setting company’s pricing policy with proper example? Describe, in as much detail as possible, If you don't able then please skip it.
- What is the difference between variable cost and fixed cost?Why would a price skimming strategy probably not work for a “me-too” product, something very similar to a new-to-the-world product?For what types of products would price skimmingbe most appropriate? For what types ofproducts would penetration pricing be moreeffective?
- Ethics and PricingPeople feel better when they think they are getting a great bargain when they shop.Knowing this, some retailerâs markup items above the traditional retail price and thenoffer a 60 percent discount. If they had simply discounted the normal retail price by 20percent, the resulting âsale priceâ would have been the same. One retailer says that heis just making shoppers happy that they got a great deal when he inflates the retailprice before discounting. Significantly marking up prices in order to offer âdeep discountsâ is not an unethicalpricing practice per se, but it may be considered misleading advertising. The retailer isnot really reducing its profits as a result of offering the sale price, even though a 60percent discount implies a financial sacrifice on the part of the retailer for the benefit ofthe customer. The situation described above could, perhaps, be considered a sales…e. What are the advantages and disadvantages of profit-oriented pricing?Subject: Pricing Strategies If your item cost P10 and you apply 60 percent mark-up, what would be the item price. If you used keystone pricing in this case, what then would be the item price?