Cost-based pricing is sometimes justified by arguing that it ensures that a company receives a good profit
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 80% (15 reviews)
Although a costbased price might ensure good peritem profits it m...View the full answer
Answered By
PALASH JHANWAR
I am a Chartered Accountant with AIR 45 in CA - IPCC. I am a Merit Holder ( B.Com ). The following is my educational details.
PLEASE ACCESS MY RESUME FROM THE FOLLOWING LINK: https://drive.google.com/file/d/1hYR1uch-ff6MRC_cDB07K6VqY9kQ3SFL/view?usp=sharing
3.80+
3+ Reviews
10+ Question Solved
Related Book For
Pricing Strategies A Marketing approach
ISBN: 978-1412964746
1st edition
Authors: Robert M. Schindler
Question Posted:
Students also viewed these Marketing questions
-
1. Does Cath Kidston's pricing strategy truly differentiate it from the competition? 2. Has Cath Kidston executed value-based pricing, cost-based pricing, or competition-based pricing? Explain. 3....
-
What does risk taking have to do with the use of operating and financial leverage?
-
Relevant Costing, Cost-Based Pricing, Cost Behavior, and Net Present Value Analysis for NoFat The purpose of this integrated exercise is to demonstrate how a special sales-relevant decision analysis...
-
1. What is Ladures target market and retail strategy in the United States? 2. Explain the reasons Ladure owns its stores in some countries and uses franchising with local licensees in others. 3....
-
Calculate RONA's gross margin for fiscal 2010 and 2011. Assuming that all other expenses remain the same, what would RONA's net income or loss before taxes have been if it had the same gross margin...
-
Ferris Company began January with 6,000 units of its principal product. The cost of each unit is $8. Merchandise transactions for the month of January are as follows:
-
Show that the stochastic process \[e^{\int_{0}^{t} c(s) d B_{s}-\frac{1}{2} \int_{0}^{t} c^{2}(s) d s}\] is a martingale for any deterministic function \(c(t)\). Does the result change if \(c(t,...
-
Carmon Company invested $300,000 in the equity securities of Mann Corporation. The current market value of Carmons investment in Mann is $250,000. Carmon currently needs funds for operating purposes....
-
1 5 points Required information [The following information applies to the questions displayed below.] The first production department of Stone Incorporated reports the following for April. Direct...
-
The following bill of materials represents the major components for a computer system. Complete the MRP records below. Note the following: Production plans (the MPS) for the 800 Deluxe computer...
-
If an item will be priced according to a 55 percent gross margin and the item costs $20, use that gross margin percentage to directly calculate the items price.
-
Given that there is a serious disadvantage to cost-based pricing, how would you account for its widespread use in retailing and other businesses?
-
Watchdog groups have long decried product placements for blurring the line between content and advertising without adequately informing viewers. The networks themselves appear to be divided on how...
-
Assume that today is December 31, 2021, and that the following information applies to Abner Airlines: After-tax operating income [EBIT(1 2 T)] for 2022 is expected to be $400 million. The...
-
Adamson Corporation is considering four average-risk projects with the following costs and rates of return: The company estimates that it can issue debt at a rate of r d = 10%, and its tax rate is...
-
What condition regarding cash flows would cause more than one IRR to exist? Project MM has the following cash flows: 0 - $1,000 End-of-Year Cash Flows 1 2 $2,000 $2,000 3 - $3,350
-
A firm with a 14% WACC is evaluating two projects for this years capital budget. After-tax cash flows are as follows: a. Calculate NPV, IRR, MIRR, payback, and discounted payback for each project. b....
-
Components Manufacturing Corporation (CMC) has an all-common-equity capital structure. It has 200,000 shares of $2 par value common stock outstanding. When CMCs founder, who was also its research...
-
Table 5 gives the number of students enrolled at the University of Illinois, at Urbana-Champaign (UIUC), for the fall semesters 20122015. (a) Find the least-squares line for these data. (b) The...
-
A routine activity such as pumping gasoline can be related to many of the concepts studied in this text. Suppose that premium unleaded costs $3.75 per gal. Work Exercises in order. Use the...
-
Why is the market value of real estate determined partly by the lender's requirements and partly by the requirements of equity investors?
-
Describe the conditions under which the use of gross income multipliers to value the subject property is appropriate.
-
You have been asked to estimate the market value of an apartment complex that is producing annual net operating income of $44,500. Four highly similar and competitive apartment properties within two...
-
4. Methane burns in air with an equivalence ratio of =0.85, determine the composition of the products: What are the Mass Fractions of each species in the Products?
-
1. Describe the health and safety requirements of the area in which the installation activity is to take place, and the responsibility these requirements place on the learner 2. Describe the...
-
1. Which is easier for nucleation in solids, homogeneous or heterogeneous nucleation? What are the common defects present in solid solution (list at least five kinds of defects)? Are the defects...
Study smarter with the SolutionInn App