Answer:
Truman has a higher inventory turnover ratio and Stapleton has a higher gross profit ratio ( D )
Explanation:
Truman sell a large number of common household items ( assuming 100 unit )
while Stapleton sells a small number of expensive items ( assuming 20 units )
lets assume : Truman sells at $5 per unit and Stapleton sells at $50 per unit
with the above assumptions
Truman gross profit ratio = $5 * 100 units = $500
Stapleton gross profit ratio = $50 * 20 units = $1000
from the above assumptions you can deduce that the gross profit made by Stapleton is higher although he sells a smaller amount of goods while Truman has a higher Turnover because of its higher number of sold units
Answer:
$460,000 increment in the operating income
Explanation:
Production = 75000
Unit sales price = $420
Sales revenue 31,500,000
Cost of sales
Manufacturing (260*75000) 19,500,000
Gross profit 12,000,000
Marketing and admin (40*75000) 3,000,000
Manufacturing 770000
Marketing * Admin 200000
Operating income 8030000
Revenue for special order = 375*4000 = 1,500,000
Manufacturing cost =4000*260 1,040,000
Gross profit 460,000
There will be an increment of $460,000 in the operating income.
Answer:
(D) Abby, Ben, and Clara
Explanation:
Given that each of the five citizens will share the cost of the public good equally (that is, $200 each), citizens who derive benefits greater than $200 are likely to vote in favor of an equal share of the cost since this option will result in a net benefit of the public good to them.
For instance, net benefit to Abby = $220 benefit - $200 cost = $20 net benefit.
On the other hand, citizens who derive benefits worth less than $200 are less likely to vote in favor of an equal share since an equal share will result in a net loss to them.
For instance, net loss to Matt = $120 benefit - $200 cost = $80 net loss.
Therefore, Abby ($220), Ben ($210) and Clara ($210) are likely to vote in favor of a proposal for an equal share of the cost, since the benefit they derive is greater than the cost in an equal share $200.
Answer:
b. value-based pricing
Explanation:
Value based pricing is a pricing strategy to set price of products based on value perceived by the purchaser. To have increased profit margin, business deduces the number of benefit the product provides to consumer. Then it establishes price which takes consideration of manufacturing cost, competitive price and consumer's willingness to pay price for the goods.
In the question mentioned IKEA not only provide functional benefit for the product but also quality, design, and services at low prices hence it is an instance of value based pricing.
