Answered: What is the amount of the difference…

What is the amount of the difference between the variable costing and absorption costing net operatingincomes? What is the cause of this difference?

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter6: Target Markets: Segmentation And Evaluation

Section: Chapter Questions

Problem 3SC

See similar textbooks

Related questions

Q: 40000 per 100 unit of reagent. Estimate the price per unit by following pricing method; 1. Cost plus…

A: Cost-plus pricing refers to a pricing strategy wherein a certain markup is added to the cost of the…

Q: WipeX is a new cleaning tissue used for cell phones; wiping the surface of the cell phone to remove…

A: A distribution channel can be defined as a chain of intermediaries like retailers, wholesalers,…

Q: DDK is a high-technology firm. It has developed a new component that offers superior advantages over…

A: Value-based pricing is a technique of setting a differentiated price of a product based on target…

Q: Explain the terms cost and costing, as well as the function that costing plays in product…

A: The question is related to Cost, Costing and function that costing plays in product management.

Q: Pricing issues. Revenue Models. the market structures.

A: The product I have selected is an smartphone. The details are discussed as follows-

Q: How value based pricing strategy effects profit maximizaiton

A: Ans.Value-based pricing is additionally recognised as like value-added pricing then perceived worth…

Q: Describe the concepts of cost and costing, as well as the role they play in the management of…

A: Management of the financial resources of any business is an essential activity of an organization.…

Q: Please help this is just an assessment Our company Name is HEALTHY BATH COMPANY and our Product is…

A: Marketing strategy is a long-term, forward-looking approach and overall game plan for any…

Q: 1. Identify 7 sources of vehicle purchasing information and the type of information available in…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Can you tell me more about Buyer-oriented pricing strategy?

A: A buyer-oriented pricing strategy is a sort of pricing strategy in which prices are determined…

Q: WHAT ARE THE USUAL ISSUES A WATER REFILLING STATION FACES AGAINST ITS COMPETITORS WHEN IT COMES TO…

A: Water refill station- Consumers can get safe, drinkable water from a water refilling business. Water…

Q: How do service businesses use off-peak pricing?

A: Off peak pricing can be explained pricing through which the company charges prices for the goods or…

Q: Explain why it is a good idea to price a product according to value perception of the customers.…

A: Perceived value pricing is that value which customers are willing to pay for a particular product…

Q: Being at the premium end is category upon itself. Describe the indicator of premiumness or high…

A: Premiums refer to the high quality and high price of the products.

Q: All of the following statements are true about the "low-price" segment EXCEPT:

A: The correct answer is D

Q: What are the four methods used in by-product costing, and how do they differ? Which is the…

A: As we all know that “by-products” is generally used to denote one or more products of relatively…

Q: Find an example of another good or service that is priced like automobiles or airline seats and…

A: Price is the monetary value that a customer is supposed to pay in exchange for buying a product or…

Q: What are the major price implications of the PIMS studies?Suggest possible explanations for the…

A: Profit Impact of Market Strategies: PIMS is a long-term research project of business units (SBUs)…

Q: Please provide examples of three products with independent demand and three products with dependent…

A: The demand patterns which I would use to control the forecast are: Quantitative Method: Quantitative…

Q: Transportation adds value to products by providing _____ and ______ utility: Select one: a. Price…

A: Transportation, the movement of goods or persons from place to place by various means like road,…

Q: What is Formal Approaches to Supply Base Rationalization?

A: The practice of reducing the number of participating suppliers in order to shrink the market base is…

Q: the product based view for McDonald's

A: The emphasis in the product-based approach is with respect to quality as an exact and quantifiable…

Q: Look up the following site to evaluate restaurants’ pricing strategies based on reviewers’…

A: Price is more of a psychological concept where it acts as a perceived value in the eyes of the…

Q: which is more important price or quality?

A: The marketing mix is the process of integrating various elements of marketing such as product,…

Q: what is differentiation? What are some forms of differentiation in washing detergents? How does…

A: Differentiation - It is a marketing strategy in which companies introduce their product or services…

Q: What is recommendation and conclusion of price?

A: Recommendation of price means when a price is refered to the person. The price is given at a good…

Q: What is target costing?

A: Target costing is where prices are determined by market conditions. In FMCG, healthcare construction…

Q: Some firms have profit as a pricing objective. whereas others set prices forcustomer satisfaction.…

A: The pricing objective of the company becomes the basis of what pricing strategy will it use to price…

Q: Maya is setting prices for her home remodeling business. Over the course of the year, there are…

A: A business is an organization or enterprise that is engaged in professional, commercial, or…

Q: What is a difference between job order costing, batch costing and process costing?

A: A job includes an amount of labor and material that are required in the production of goods and…

Q: Compute the given data using Cost Plus Pricing and Mark Up Pricing Approaches Given Data: Product…

A: Cost plus pricing and Mark Up Pricing the process of determining the Selling price based on the cost…

Q: Find the factor for a 32% food cost. Next, price a menu item with a Food Cost (FC) of $7.85.

A: Food cost %=32%Food cost= FC = $7.85Menu price based on a food cost the formula: Meun price…

Q: Distinguish between an actual costing system and a normal costing system. What are the componentsof…

A: Introduction: Both actual costing system & a normal costing system achieve the same objective of…

Q: Recommended Product 4Ps Strategies Price Recommended Marketing Strategies Distribution Promotion 7Ps…

A: Marketing strategies for AINAA beauty and skin care products in Malaysia You can only really start…

Q: Keisha has been inundated with product-of-the-month offers from various marketing companies. She is…

A: Total cost is the cost which is the addition of fixed cost and variable cost, it is calculated by…

Q: How can Competitive pricing, website traffic and gross profit be used to measure the success of the…

A: Competitive pricing: Competitive pricing consists of setting the price at the same level as one's…

Q: The cost to produce the shake is relatively low, with total manufacturing costs running about $0.05…

A: Price strategy is the process of setting the prices of goods and services to be sold in the market…

Q: Based on principles from the chapter, explain how priceaffects customer perceptions of the Coach…

A: Price is the value that has to be paid by the customers to own their product of a company . It…

Q: A manufacturer of analog watches wants to get rid of their excess inventory as the product is in the…

A: Sales promotion refers to the marketing tools and techniques that provide a business firm with extra…

Q: In each case listed, state whether the factor listed is an advantage or a disadvantageof FMS.…

A: A flexible manufacturing system known as FMS refers to the automated machine cell, that generally…

Q: Competitive advantage can be gained through options A. Skimming pricing strategy B. Focusing on…

A: Competitive advantage refers to the position that a company takes in order to be at a competitive…

Q: How to achieve and improve micro business production and pricing scheme

A: Micro Business refers to those business factors which are with in the control of the business. These…

Q: What is the relevance of manufacturing businesses to price level?

A: MANUFACTURING: Manufacturing is the process of converting the raw materials into finished products…

Q: Explain the term target costing?

A: Target costing- It is not only a technique of costing, but also a managerial technique in which…

Concept explainers

Customary Pricing

There are various types of pricing strategies followed in the market. They are psychological pricing, odd pricing, free onboard pricing, customary pricing, prestige pricing, dual pricing, ruling pricing, negotiated pricing, mark up pricing, etc. each one can be explained as follows:

Multiple Unit Pricing

“Multiple-unit pricing is a practice where a company offers consumers a lower than unit price if a specified number of units are purchased.”

Question

What is the amount of the difference between the variable costing and absorption costing net operating
incomes? What is the cause of this difference?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Trending now

This is a popular solution!

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.

Similar questions

What is the relationship between gross variable costs, total fixed costs, average variable costs, and average fixed costs when the cost driver changes?
How does price relate to value in the eyes of a customer?
What are the four methods used in by-product costing, and how do they differ? Which is the preferredmethod and why?
Costing systems attempt to explain how products consume resources but do not indicate the joint benefits of having multiple products.”Required:Citing examples of at least two costing systems,a. Explain the statement above.b. Explain how the addition of a new product to the product range may affect the cost of existing productsc. Outline the consequences, in terms of profitability, of decision to increase/decrease the product range.d. Identify six costing systems.
You have identified 4 possible ways of meeting demand for your products. Option Fixed Cost Variable Cost A 10,000 5 B 5,000 6 C 0 8 D 16,000 9 For any number of units, tell me which option is cheapest.
_______means that differences in pricing across customers and changes over time reflect differences or changes in the value tocustomers a. profit driven b. proactive c. value-based d. competitive-based
List and explain four key influencers on pricing decisions . A new customer ABC Ltd, wants to buy 500 units of your product, but is only prepared to pay RM4 per clock. This will not cover the total cost of making the product, but it will cover the variable costs – anything over RM3 makes a Provide and discuss three factors that you would take into account when deciding whether or not to take the order.
What is target costing?
Compute the given data using Cost Plus Pricing and Mark Up Pricing Approaches Given Data: Product Cost = P200.00/Unit Desired Rate = 30% Quantity = 50,000 Units *Note: If there are decimal answers, Round it off to two (2) decimal places. clear and complete solution
Please only answer D-1 and D-2 Assume that Painless Dental Clinics, Inc., offers three basic dental services. The following are its prices and costs. Priceper Unit Variable Costper Unit Units Soldper Year Cleaning $ 400 $ 220 8,500 Filling 680 660 1,200 Capping 1,550 920 300 Variable costs include the labor costs of the dental hygienists and dentists. Fixed costs of $540,000 per year include building and equipment costs, marketing costs, and the costs of administration. Painless Dental Clinics is subject to a 20 percent tax rate on income. A cleaning “unit” is a routine teeth cleaning that takes about 45 minutes. A filling “unit” is the work done to fill one or more cavities in one session. A capping “unit” is the work done to put a crown on one tooth. If more than one tooth is crowned in a session, then the clinic counts one unit per tooth (e.g., putting crowns on two teeth counts as two units). Required: a. Given this information, how…
Distinguish between an actual costing system and a normal costing system. What are the componentsof actual manufacturing costs and the components of normal manufacturing costs?
How can Competitive pricing, website traffic and gross profit be used to measure the success of the a new clothing store.