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stealth61 [152]
2 years ago
14

You are a pricing analyst for QuantCrunch Corporation, a company that recently spent $15,000 to develop a statistical software p

ackage. To date, you only have one client. A recent internal study revealed that this client’s demand for your software is Qd = 300 – 0.2P and that it would cost you $1,000 per unit to install and maintain software at this client’s site. The CEO of your company recently asked you to construct a report that compares (1) the profit that results from charging this client a single (profit-maximizing) per-unit price with (2) the profit that results from charging $1,450 for the first 10 units and $1,225 for each additional unit of software purchased. What type of pricing strategy is (1)?
Business
1 answer:
9966 [12]2 years ago
5 0

Answer:

Pricing strategy of (1) is per unit pricing

Explanation:

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AlphaBrona Industries manufactures 50,000 components per year. The manufacturing cost of the components was determined as follow
sashaice [31]

Answer:

Option (a) is correct.

Explanation:

Manufacturing cost:

= Direct materials + Direct labor + Variable overhead + Fixed overhead

= $80,000 + $100,000 + $30,000 + $60,000

= $270,000

Purchase from outside:

= Fixed overhead + Purchase price

= $60,000 + (50,000 × $10)

= $60,000 + $500,000

= $560,000

Effect on income = Purchase from outside - Manufacturing cost

                            = $560,000 - $270,000

                            = $290,000

Therefore, the above calculations shows that income will decrease by $290,000.

8 0
2 years ago
Montana Industries has computed the following unit costs for the year just ended: Variable manufacturing overhead $85 Fixed manu
katovenus [111]

Answer:

Variable, $85; absorption, $105.

Explanation:

Variable costing $85

Absorption costing $105=(85+20)

3 0
2 years ago
A merchandising company's sales budget indicates the following sales: January: $25,000; February: $30,000; March: $35,000. Sales
Svetradugi [14.3K]

Answer:

The total selling expenses for the quarter will be $25,800

Explanation:

The computation of the total selling expenses for the quarter is shown below:

= Salaries + commission + Advertising

where,

Salaries = Expected salaries × number of months in one quarter

             = $5,000 × $3

             = $15,000

Commission = (January sales +  February Sales + March Sales) × Commission percentage

= ($25,000 + $30,000 + $35,000) × 10%

= $9,000

And, the adverting equal to

= Expected advertising expenses × number of months in one quarter

= $600 × 3 months

= $1,800

Now put these values to the above formula

So, the value would be equal to

= $15,000 + $9,000 + $1,800

= $25,800

3 0
2 years ago
Zoe buys 50 pounds of frozen peaches each month to make her famous peach cobbler that she sells in her bakery. If Zoe believes t
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Please forgive me if I’m wrong
I think it would be a.true
7 0
1 year ago
Explain the importance of assessing one's Pecs before engaging in any particular entrepreunrial activity
natulia [17]
Assessing one's personal entrepreneurial competencies also known as PECs is very important to evaluate your weakness and strengths when it comes to entrepreneurship. By doing this, you will be able to fix your weaknesses and strengthen your strengths for the advantage of the activity.
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