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2 years ago

Why do companies lower product prices and offer free samples?

Business

2 answers:

shtirl [24]2 years ago

4 0

Answer:

A.to find out what people want in a product

Explanation:

Companies lower the value of products in a variety of ways, the main one being when demand falls. Free sample offering typically occurs when companies want consumers to test their products. This is mainly when new products are launched. A strong corporate strategy is to associate the price drop with the offer of free samples. This will cause the company to test consumer taste at the same time and to evaluate the demand for the product tested at a certain price. If the product is well accepted by consumers, in the future the company may raise the price if the demand for the product is high.

Lemur [1.5K]2 years ago

3 0

The best choice here is A) They give out the samples and free trials as a test to see how common it is for people to be interested in their product.
Hope this helps

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The Brazilian economy is growing at a 6% annual rate in real terms. The Bank of Brazil is expanding its monetary base (e.g., mon

Aleks04 [339]

Answer:

The correct answer is the letter b, 5%.

Explanation:

The quantitative theory of money analyzes the relationship between money supply and price level, MV = PY, where M is the money supply, V is the speed of money, P is the price level, and Y is the real product. Thus, having Y = 6%, V = constant and M = 30%, we have:

MV = PY

30 (1) = P (6)

P = 30/6

P = 5%

That is, the inflation rate for the Brazilian economy based on the quantitative theory of the currency is 5%.

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2 years ago

Once the job analysis is performed, there are several well-structured steps to the hiring process. this process includes _______

kvasek [131]

In order to get a comprehensive evaluation of the computer programmers organized a 360 degree interview where he asked immediate coworkers and others that worked closely with the programmers to participate in the evaluation process. Setting up interviews, performing background checks on selected candidates, and establishing probationary periods.

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1 year ago

Sue Helms Appliances wants to establish an assembly line to manufacture its new product, the Micro Popcorn Popper. The goal is

Iteru [2.4K]

Answer:

Please see explanation below.

Explanation:

a. Cycle time = Production time available per hour / Units required per hour

= 60 / 5

= 12minutes

Minimum number of workstations = Sum of the task time / Cycle time

Sum of task time

= 8 + 10 + 8 + 10 + 8 + 4

= 48

The theoretical minimum number of work stations is

= 48 / 12

= 4

b. In order to assign the tasks to the work station, events that precede the task must be considered together with the time taken to complete each task.

°Task A This task is assigned to work station 1 and no task would further be assigned to work station 1, otherwise it will exceed the cycle time.

°Task B. This next task will be assigned to work station 2, no additional task will be assigned to station 2.

Task C is assigned to workstation 3, hence can no longer accept any other assigned task.

°Task D is the next task and will be assigned to work station 4, and we cannot assign any more task to work station 4.

°Task E and F will not be assigned as there are no more available stations.

Task Time Workstation

A. 8 1

B. 10 2

C. 8 3

D. 10 4

E. 8 -

F. 4 -

Please note that due to the theoretical minimum number of work station, which is 4, it will not be possible to assign task to all the workstations hence task E and F remains unassigned.

C. Efficiency of the assembly line

Efficiency ;

= Sum of task times / Actual number of work stations × cycle time

Although the actual number of required workstation is 5 but we cannot assign task E and F due to the theoretical minimum number of workstation. Therefore, additional work station will be required and there are 5 work stations in total.

= 48 ÷ (5 × 12) × 100

= 80%

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1 year ago

On January 1, Renewable Energy issues bonds that have a $52,000 par value, mature in ten years, and pay 15% interest semi annual

gayaneshka [121]

Answer:

a) $520

b)$1,820

2) $3,900

Explanation:

a) For issue at 99, we have:

IWe first find the proceeds for when the bond is issued at 99, we have:

Proceeds = Asset's Par value x (issue rate /100)

= $52,000 x (99 / 100)

= $51, 480

Now, let's find the bond premium or discount:

Bond premium = Proceeds - Par value

$51, 480 - $52,000

= $520

b) For bonds issued at 103½, we have:

Let's find the proceeds when the bond is issued at 103½:

Proceeds = $52,000 x (103.½ / 100)

= $53,820

We now find the the bond premium or discount:

Bond premium = Proceeds - Par value

= $53,820 - $52,000

= $1,820

2) To find the interest paid semi-annually, we have:

Interest paid = Par value of the bonds x semi-annual interest rate.

Interest paid = $20,000 x (15%/2)

Interest paid = $52,000 x 7.5%

= 52,000 × 0.075

= $3,900

8 0

2 years ago

Read 2 more answers

On August 1, Ling-Harvey Corporation (a U.S.-based importer) placed an order to purchase merchandise from a foreign supplier at

ryzh [129]

Answer:

Detailed workings are in the explanations.

Explanation:

August 1

On August 1, Ling Harvey entered into a forward contract to purchase 400000 ringgits in 3 months at a forward rate of $0.60.

If Ling Harvey has to pay 400000 ringgits now, total outflow would be $ 240000 (400000*0.60) and in forward contract it has to pay $ 240000 also (400000*0.60), so ling harvey has not incurred any loss

So, there is a firm commitment to pay $ 240000 on October, 31

For entering into a forward contract, there will be no entry.

On September, 30

Forward contract rate has increased to 0.66 from 0.60 (august, 1), so there is a increase in the fair value of the Forward Contract. Earlier its value was $240,000 on Aug,1 but now its value is $ 264,000, so there is a increase in fair value by $24,000

Since this $24000 will be realized on Oct, 31, we will book it today at present value

Present value = $24000*0.9901= $23,762.4

Journal entry would be as follows:

Debit: Forward Contract a/c $23,762.4

Credit: Gain on Forward Contract $23,762.4

Now, the spot rate determines the fair value of Commitment, so there is an increase in fair value of firm commitment by (0.63 - 0.60) * $400,000 =$12,000.

0.63 is the spot rate on September, 30

Since our Firm commitment value increased by $12,000, we need to book it at present value .

Present Value = $12,000*0.9901=$11,881.2

Journal Entry is as follows:

Debit: Loss on Firm Commitment a/c $11,881.2

Credit: Firm Commitment $11,881.2

So its effect on Net income is as follows:

Debit: Gain on Forward Contract a/c $23,762.4

Credit: Loss on Firm Commitment $11,881.2

Credit: Retained Earnings $11,881.2

On October 31

Today spot rate is 0.68, so the value of the forward contract when compared to its value on Aug 1

= (0.68 - 0.60) *$400,000

= $32,000

So there is an increase in Forward Contract Value by $32,000, since we have already booked $23,762.4, we will book the additional value $82,37.6 as follows:

Debit: Forward Contract a/c $8,237.6

Credit: Gain on Forward Contact $8,237.6

So, the Firm Commitment value has also increased from 0.60(Aug 1) to 0.68

Increase in value = (0.68-0.60) *$400,000 = $32,000

As we have already booked a liability of $11,881.2, we will be book the additional increase in value of $20,118.8 as follows

Debit: Loss on Firm Commitment a/c $20,118.8

Credit: Firm Commitment $20,118.8

So, its effect on Net Income is as follows

Debit: Gain on Forward Contract a/c $8,237.6

Debit: Retained Earnings a/c $11,881.2

Credit: Loss on Firm Commitment $20,118.8

So the total effect on Net income is 0, as on Sept 30 retained earnings has been credited by $11881.2 and on Oct 31, it has been debited by $11881.2... This is due to as there was no difference between spot rate & forward rate on August 1

As on 31st October, there is a debit balance of $32,000 in Forward Contract & credit balance of $32000 in Firm commitment.

Entry for Goods received & payment to foreign supplier is as follows

Debit: Inventory (At spot rate on Aug 1) $240,000

Debit: Firm Commitment (offset) $32,000

Credit: Forward contract (offset) $32,000

Credit: Cash (At forward rate on Aug 1) $240,000

The net cash outflow to foreign supplier is $240,000.

7 0

2 years ago