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QveST [7]
2 years ago
15

Costs for rent and utilities are fixed by contract, and the two shops produce the same flavor of ice cream. The owner of Company

A is considering lowering the price of its ice cream, starting a price war with Company B in an effort to grab market share from its competitor. Would it be a wise decision for Company A to enter a price war with Company B?
Business
1 answer:
Sophie [7]2 years ago
8 0

Answer:

It's not a wise decision.

Explanation:

It's not the correct call, because costs for rent are always the same, since they have a contract. So, lower prices is gonna get to the Company A a poor profitability in the future. If the do it and they get more costumers, the problem isn't solved, because once they need to rise prices, costumers are gonna leave at the same time.

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A supermarket expects to sell 1000 boxes of sugar in a year. Each box costs $2, and there is a fixed delivery charge of $20 per
Strike441 [17]

Answer:

Order size = 200 units

Number of order  = 5 times

Explanation:

<em>The number of order per year  will be equal to the Annual demand divided by the EOQ.</em>

<em>No of orders = Annual Demand / EOQ</em>

Economic order quantity (EOQ)

The Economic Order Quantity (EOQ) is the order size that minimizes the balance of ordering cost and holding cost. At the EOQ, the carrying cost is equal to the holding cost.

It is computed using he formulae below

EOQ = √(2× Co× D)/Ch

Ch- Carrying cost per unit per annum-  $1

Co- Ordering cost per order -20

EOQ =√(2× 20× 1000)/1

        = 200 units

Order size = 200 units

Number of order = 1000/200 = 5 times

4 0
2 years ago
Robinson Company purchased Franklin Company at a price of $2,500,000. The fair market value of the net assets purchased equals $
Fed [463]

Answer:

Explanation:

Goodwill is defined as the excess in amount of the purchase price of a company over the fair value at acquisition.It is intangible in nature , meaning it can not be physically separated from the other assets. Example are patent , brand name , good employee relation.

1.

Goodwill calculation

Purchase price - $2,500,000

Fair value -          $1,800,000

Goodwill -               $700,000        

2.

No

Under the IAS 36, impairment of assets , goodwill is not amortized but annually tested for impairment as amortization is applicable to intangible assets with a definite useful life while intangible assets with indefinite useful life are annually tested for impairment to evaluate a loss in value experienced.

3

No

Under IAS 38 , Internally generated goodwill are not recognized as no related cost is incurred towards achieving a future benefit

7 0
2 years ago
Question 2 options: Assume that in short-run equilibrium, a particular monopolistically competitive restaurant (Applebee's) char
Triss [41]

Answer:

104

Explanation:

7 0
2 years ago
If fixed costs are $850,000 and the unit contribution margin is $50, profit is zero when 15,000 units are sold.
Firlakuza [10]
B false
Hope this helps
6 0
2 years ago
Helen Heartwell flew to New York City a few weeks after the September 11, 2001, bombing of the World Trade Center. She wanted to
Ymorist [56]

Answer:

<u>Phenomenological</u>

Explanation:

Helen Heartwell flew to New York City a few weeks after the  September 11 , 2001, bombing of the World Trade Center . She wanted to know how the victims of the attack were making sense of what had happened to them . Dr. Heartwell is probably employing<em><u> Phenomenological</u></em> qualitative research design.

Phenomenological is the study in which we can study about the phenomena of the human as they experienced in real pr may they lived that.

There are two main approach of Phenomenological they are descriptive and interpretive . In recent time , Phenomenological is used widely in any field. It considered the important aspect which a person experienced or lived , but not interested in the explanation .

6 0
2 years ago
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