A satellite radio company is the sole supplier of a brand-new service providing commercial-free music that competes with existing free, broadcast-radio music delivered via antennas. The service is automatically activated for a 6-month introductory free-trial period, and is only available to people who purchase a new car with a specially equipped receiver. After the trial period, customers must call the company to activate and retain the service. Match each customer below to the radio company’s best profit-maximizing price strategy.

a. Ricardo explains that he is indifferent to the new service, and has not yet sampled many of the stations.
b. Joe, who explains that he needs music to sing along with while he commutes two hours each day for work.
c. Natasha, who says that she likes the service, but who commutes less than a half hour each day for work.

1. high price
2. medium price
3. low price

Answers

Answer 1
The answer to your question is 1. high price
Answer 2

The company's best profit-maximizing price strategy based on the views of their customers is:

Ricardo - Low price. Joe - High price. Natasha - Medium price.

What is the company's best profit-maximizing price strategy?

The company should charge more to customers that use the service a lot. This is why Joe should be charged the highest price.

Natasha would like to use the commercial music service more but she doesn't commute to work much so a medium price would be good.

Ricardo is indifferent and hasn't used the service much and so should get the lowest price.

Find out more on profit-maximization at https://brainly.com/question/15969466.


Related Questions

Perteet Corporation's relevant range of activity is 6,600 units to 13,000 units. When it produces and sells 9,800 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 7.30 Direct labor $ 3.70 Variable manufacturing overhead $ 1.80 Fixed manufacturing overhead $ 3.10 Fixed selling expense $ 0.70 Fixed administrative expense $ 0.40 Sales commissions $ 0.50 Variable administrative expense $ 0.55 If 7,300 units are produced, the total amount of manufacturing overhead cost is closest to:

Answers

Answer:

Total overhead cost= $43,520

Explanation:

Giving the following information:

Variable manufacturing overhead $ 1.80

Fixed manufacturing overhead $ 3.10

First, we need to calculate the total fixed overhead:

Total fixed overhead= 3.1*9,800 = $30,380

Now, the total overhead cost for 7,300 units:

Total variable overhead= 7,300*1.8= 13,140

Total fixed overhead= 30,380

Total overhead cost= $43,520

Shareholders may prefer the compensation package that includes stock options because the options give the CEO the incentive to maximize the price of the company's stock, thus benefiting the shareholders. A fixed salary, regardless of stock price performance, can lead to a CEO who is willing to do the minimum necessary to maintain the job, but who is not motivated to work extra hard for shareholders.

a. True
b. False

Answers

Answer: True

Explanation:

There exists a problem known as the Agency Problem between managers and the shareholders of a company. The manager is the agent and the shareholders are the owners. Sometimes, it has been shown that the agent might act in their best interests as opposed to be best interests of the owners of the business.

To solve this, the manager should be made an owner as well and one way to do so is to give them stock options. This way, they will be motivated to work hard for the owners because they will benefit as well.

Karen timely filed her 2016 return on April 15, 2017. Under ordinary circumstances, what is the last day she can file an amended 2016 return?
A. April 15, 2019.
B. October 15, 2019.
C. April 15, 2020.
D. October 15, 2020.

Answers

Answer: C. April 15, 2020.

Explanation:

If Karen hopes to receive a refund on the amended 2016 return then she should file it within 3 years of the day she filed her 2016 return.

She filed her 2016 return on April 15, 2017 so three years from then would be:

= 2017 + 3

= 2020

April 15, 2020

Match each current trend with the advantage it provides for the global
economy

Reduction of
trade barriers

?
Facilitates international
business and trade
Allows for a greater
mobility of goods and
labor

Industrialization

?
Improved
communication

Reduces production and
transportation costs

Development of
infrastructure

Enables economic growth
in developing countries

Answers

Answer:

Find answers below.

Explanation:

1. Reduction of trade barriers: allows for a greater mobility of goods and labor.

Some examples of trade barriers are import license, quotas, subsidies, embargo, currency devaluation, local content requirements, tariffs, etc.

A tariff can be defined as tax levied by the government of a country on goods and services imported from another country.

2. Industrialization: enables economic growth in developing countries.

Industrialization can be defined as a strategic process which typically involves the development of various industries in a country by the large-scale introduction of mechanized equipments and use of technology for the manufacturing of goods and services that meets the need or requirements of consumers.

3. Improved communication: facilitates international business and trade.

Basically, when there is an effective and efficient level of communication between two or more countries, it would help to facilitate and enhance the exchange of goods and services between the countries.

4. Development of infrastructure: reduces production and transportation costs.

Typically, when there are good infrastructural development such as roads, electricity, etc., in a society it would ease the movement of goods and services, as well as the cost of production and transportation.

Correctly complete the following statement. We may be more likely to consider using qualitative forecasting techniques when Select one: a. a lot of historical (quantitative) demand data exists. b. we are faced with a short-term, operational decision-making problem. c. the relevant environment is likely to be quite stable (less variable) over the forecast horizon. d. the forecast horizon is long (e.g., more than three to five years).

Answers

Answer:

b

Explanation:

There are two types of forecasting method

1. Qualitative forecasting

2. Quantitative forecasting

Qualitative forecasting can be described as when subjective judgement or non quantifiable information in forecasting.

When is qualitative forecasting suitable ?

It is used when historical data in unavailable. this method is suitable when it is predicted that future result would depart from what historical data may suggest

Advantages of Qualitative forecasting

it is flexible It can be used when data available is ambiguous or unclear

Disadvantage of Qualitative forecasting

It is subjective.

Quantitative forecasting can be described as forecasting using historical data

_______ involves giving employees more opportunity to experience achievement, responsibility and advancement.

Answers

Answer: empowerment

Explanation:

The process of giving employees more opportunity to experience achievement, responsibility and advancement us referred to as empowerment.

Empowerment is the practice of sharing information, power and rewards with the employees and this is vital as it puts the employees at the heart of the organization.

The accountant for Sysco Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available: Retained earnings balance at the beginning of the year $ 819,000 Net income for the year 230,000 Cash dividends declared for the year 42,000 Retained earnings balance at the end of the year 1,007,000 Cash dividends payable at the beginning of the year 10,000 Cash dividends payable at the end of the year 11,000 What is the amount of cash dividends paid that should be reported in the financing section of the statement of cash flows

Answers

Answer: $41000

Explanation:

The amount of cash dividends paid that should be reported in the financing section of the statement of cash flows will be calculated thus:

Beginning dividend = $10000

Add: Dividend declared = $42000

Less: Ending dividend payable = $11000

Cash dividend paid = $41000

Use the following selected information from Wheeler, LLC to determine the 2017 and 2016 common size percentages for cost of goods sold using Net sales as the base.
2017 2016
Net sales $522,200 $423,400
Cost of goods sold 219,400 135,440
Operating expenses 79,990 $77,090
Net earnings 40,420 28,670
a. 42.0% for 2017 and 32.0% for 2016.
b. 7.7% for 2017 and 6.8% for 2016.
c. 123.3% for 2017 and 100.0% for 2016.
d. 57.3% for 2017 and 50.2% for 2016.
e. 174.4% for 2017 and 199.2% for 2016.

Answers

Answer:

a. 42.0% for 2017 and 32.0% for 2016

Explanation:

Common size % for cost of goods sold = Cost of goods sold/Net sales

For 2017

= $219,400 / $522,200

= 0.4201456

= 42%

For 2016

= $135,440 / $423,400

= 0.31988663

= 31.99%

Which of the following would cause a person starting a small business to choose a sole proprietorship over a partnership?
a. The person has minimal experience managing a small business.
b. The person is willing to share responsibilities for running the business.
c. The person wants to retain complete control over the entire business.
d. The person lacks sufficient funding for business operations.

Answers

Answer:

c

Explanation:

A sole proprietorship is a type of business that is owned by one person

Characteristics

1. it is owned by one person

2. the business has unlimited liability

3. the business has limited access to capital

4. the business usually lacks continuity. this type of business usually ceases to exist when the owner dies

5. the business is usually not separated from the owner

Last month when Holiday Creations, Inc., sold 44,000 units, total sales were $308,000, total variable expenses were $215,600, and fixed expenses were $35,700. Required: 1. What is the company’s contribution margin (CM) ratio? 2. What is the estimated change in the company’s net operating income if it can increase total sales by $1,800?

Answers

Answer: 1) CM / Sales = CM Ratio

CM = 306,000 - 238,680 = 67,320

CM Ratio = 67,320 / 306,000 = 0.22

2) CM Ratio x 2,500 = 550

Explanation:

Tariffs are a tax placed on ✔ imported goods.
Tariffs are used to give domestically produced goods ✔ an advantage in the market.
As a result of tariffs, imported goods become ✔ more expensive for consumers

Answers

Answer:

Imported, an advantage, more.

Explanation:

This is done to discourage the use of foreign items and use of domestically made products. This helps the domestic companies to get their advantage in profit and sales. Thereby making the imported goods more expensive and discourages their use.

Answer:

Tariffs are a tax placed on  

✔ imported

goods.

Tariffs are used to give domestically produced goods  

✔ an advantage

in the market.

As a result of tariffs, imported goods become  

✔ more

expensive for consumers

Explanation:

You expect to receive $5,400 two years from now, $6,300 three years from now, and $10,900 six years from now. What is the future value of these cash flows seven years from now if the interest rate is 7.4 percent, compounded annually

Answers

Answer:

Total FV= $27,805.2

Explanation:

Giving the following information:

You expect to receive $5,400 two years from now, $6,300 three years from now, and $10,900 six years from now.

Interest rate= 7.4%

To calculate the Future Value, we need to use the following formula:

FV= Cf*(1 + i)^n

Cf1= 5,400*(1.074^5)= 7,716.41

Cf2= 6,300*(1.074^4)= 8,382.19

Cf3= 10,900*1.074= 11,706.6

Total FV= $27,805.2

Hannah, age 70 and single, is claimed as a dependent by her daughter. During 2020, Hannah had interest income of $2,550 and $850 of earned income from babysitting. Hannah's taxable income is:

Answers

Answer: $550

Explanation:

Standard deduction is the greater of $1,050 or the sum of the earned income and $350.

= Earned income + 350 = $1,200

Additional deduction for single seniors in 2020 is $1,650.

Total deduction is:

= 1,200 + 1,650

= $2,850

Hannah's taxable income is:

= 2,550 + 850 - 2,850

= $550

During March, XYZ Inc. transferred $50,000 from Work in Process to Finished Goods and recorded a Cost of Goods Sold of $56,000. The journal entries to record these transactions would include a:

Answers

Answer:

Date   Journal entries             Debit          Credit

          Finished Goods          $50,000

              Work in Process                          $50,000

          Cost of Goods Sold $56,000

               Finished Goods                          $56,000

Jamon is a manager in a human resources organization. He has a message for Bob who works on the assembly line. What channel is he likely to use get the message to Bob

Answers

Answer: All of the above

Explanation:

The options include:

a. Face-to-face

b. Telephone

c. Electronic mail

d. All of the above

Since the manager manager has a message for Bob, any of the communication channels given here can be used.

There is no preferred communication channel here. The manager may decided to tell Bob the message face to face when he sees him. Also, he can call him on the telephone or send an email to him.

Therefore, the correct option is All of the above.

22.On January 1, 2021, Amazon purchased a $64,000 office equipment and expected its useful economic life of 5 years. At the end of year 5th, the company expected to sell the equipment for $4,000. It is now December 31, 2021. Which of the following entries are needed to be made before preparing financial statements?
a. Debit Office equipment $64,000; Credit Cash $64,000
b. Debit Depreciation expense - Office equipment $64,000; Credit Cash $64,000
c. Debit Depreciation expense - Office equipment $12,000; Credit Accumulated depreciation – Office equipment $12,000
d. Debit Accumulated depreciation – Office equipment $12,000; Credit Depreciation expense - Office equipment $12,000

Answers

Answer:

C.

Explanation:

64000-4000 (salvage value)=60000

60000/5=12000 (annual depreciation)

depreciation expense.        12000

   Accumulated depreciation.     12000

Synovec Company is growing quickly. Dividends are expected to grow at a rate of 30 percent for the next three years, with the growth rate falling off to a constant 4 percent thereafter. If the required return is 10 percent, and the company just paid a dividend of $2.65, what is the current share price

Answers

Answer:

$87.03

Explanation:

Calculation to determine the current share price

First step is to calculate p1

p1= $2.65(1+.30)^3(1+.04) / (.10 - .04)

p1= $2.65(1.30)^3(1.04) / (.10 - .04)

p1=6.054932/.06

p1=100.92

Now let calculate the Current price

p0= [$2.65(1.30) / 1.10] +[$2.65(1.30)^2 / 1.10^2] + [$2.65(1.30)^3 / 1.10^3] + [$100.92/ 1.10^3]

p0=3.1318+4.4782/1.21+5.82205/1.331+$100.92/1.331+

p0=3.1318+3.700992+4.37419+75.82

p0=$87.03

Therefore the current share price is $87.03

A manager of a company is facing an ethical problem. He uses the formal process for ethical decision making to resolve the problem. Which of the following steps will they begin with

Answers

Answer: Understanding all the moral standards and recognizing all moral impacts.

Explanation:

Ethics is the standards and the moral principles which guide the behavior of an individual or group of people. Ethical decision making reefers to the assessment of the moral implications of a course of action.

Since the manager uses the the formal process for ethical decision making to resolve the problem, the first step to begin with is to understand the moral standards and recognizing all moral impacts. The manager needs to be aware of the moral standards and be sure if he or she is following the normal process and doing the right thing.

74. When a company issues shares at a
premium the amount of premium should
be received by the company:
(1 Point)
O Along with application money
Along with allotment money
Along with calls
Along with any of the above

Answers

Answer:

Along with any of the above

Explanation:

The book value per share of stock can be defined as a measure of the total amount of value associated with a net asset that an investor is entitled to when he or she buys a share of stock.

Hence, the book value per share of stock is a ratio of the equity gotten by an investor to the amount of outstanding shares.

In the financial markets, when a company issues shares at a premium the amount of premium should be received by the company;

I. Along with application money

II. Along with allotment money

III. Along with calls

The balance sheet indicates what an organization owns or controls and the various sources of the funds used to pay for these assets, such as bank debt and owners' equity.

a. True
b. False

Answers

Answer:

The correct answer is the option A: True.

Explanation:

To begin with, in the economics science field and the accounting theory the concept known as the balance sheet refers to a particular report that the managers have to do and understand in order to keep the control of everything inside the organization because it basically shows what the company posses, what it owns and to who it owns it with the characteristic of emphasizing it in a determine duration that could commonly be a year. Moreover it is separated in two main sides, the assets and financing, with this last one separeted in liabilities and owner's equity.

The burden of a tax is shared by producers and consumers. Under what conditions will consumers pay most of the​ tax? Under what conditions will producers pay most of​ it? A. It depends on who is legally obligated to pay the tax. Typically producers are required to pay the tax and therefore bear most of the burden. B. If demand is relatively more elastic than​ supply, producers will pay more of the tax. C. It depends on who is legally obligated to pay the tax. Typically consumers are required to pay the tax and therefore bear most of the burden. D. If demand is relatively less elastic than​ supply, producers will pay more of the tax.

Answers

Answer:

B

Explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = percentage change in quantity demanded / percentage change in price  

Price elasticity of demand = midpoint change in quantity demanded / midpoint change in price  

If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.  

Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one

Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.  

Infinitely elastic demand is perfectly elastic demand. Demand falls to zero when price increases  

Perfectly inelastic demand is demand where there is no change in the quantity demanded regardless of changes in price.

If demand is more elastic than supply, if price is increased as a result of tax,  demand would fall more than supply. As a result, producers would bear more tax burden

10. Which of the following best describes a trial balance?

Answers

I’m sorry I don’t see where it says the following

In the United States, if the price of imported oil rises so that the prices of gasoline and heating oil rise, then the a. consumer price index rises much more than does the GDP deflator. b. consumer price index rises slightly more than does the GDP deflator. c. GDP deflator rises much more than does the consumer price index. d. GDP deflator and the consumer price index rise by about the same amount.

Answers

Answer: a. consumer price index rises much more than does the GDP deflator.

Explanation:

The Consumer Price Index is a measure of inflation. It shows the change in the prices of a basket of goods over a period of time. If the prices of gasoline and heating oil rise, this basket will be affected and so Consumer Price Index (CPI) will increase.

GDP deflator on the other hand, adjusts the nominal GDP to a Real GDP measure. Not everything will increase in price in the country as a result of oil going up so GDP will not change by much which would limit the increase in the GDP deflator.

The CPI will therefore rise more than the GDP deflator.

You own a stock portfolio invested 30 percent in Stock Q, 25 percent in Stock R, 25 percent in Stock S, and 20 percent in Stock T. The betas for these four stocks are .80, 1.18, 1.19, and 1.36, respectively. What is the portfolio beta

Answers

Answer:

The Portfolio beta is 1.1045

Explanation:

The computation of the portfolio beta is given below:

Stock          Beta       Investment (Weight)       Weighted Beta

Stock Q      0.8         0.3                                   0.2400

Stock R       1.18       0.25                                  0.2950

Stock S       1.19       0.25                                  0.2975

Stock T        1.36      0.2                                    0.2720

Portfolio beta                                                  1.1045

A local bank sponsors a charity run that raises funds for a non-profit building wells and schools in Mali, Africa. How would the use of the bank’s funds for this fundraiser be justified when its goal is to maximize profit?

Answers

Answer:

The use of the bank's funds for this fundraiser would be justified when the bank's goal is to maximize profit by:

giving the bank public relations boost, thereby improving its public image.

Explanation:

The creation of publicity opportunities through this fundraiser enhances the bank's activities.  Awareness of its services is created through the sponsorship.  People perceive the bank as a charity-supporting organization, which cares for the welfare of the less-privileged.  The fundraiser creates huge goodwill.  Public relation is, therefore, critical in helping the bank to engage its diverse publics across various platforms, including the accruing intangible benefits that derivable from the seemingly unprofitable effort.

Your home insurance provides for replacement value for personal property losses. A microwave is stolen. It cost $258 two years ago and has an expected life of six years. A comparable microwave costs $366 today. What amount will the insurance company pay

Answers

Answer: $366

Explanation:

Replacement Cost Coverage refers to the valuation methods for the establishment of the value of an insured property which is used in knowing the amount that an insurer will

have to pay in case there is a loss and in such case, the insurance company will have to pay the costs at the present price to replace the damaged product.

Since the comparable microwave costs $366 today, therefore the insurance company will pay $366.

Supply-side economists believe that a reduction in the tax rate a. always decrease government tax revenue. b. would decrease consumption. c. provides no incentive for people to work more. d. shifts the aggregate supply curve to the right.

Answers

Answer: D. shifts the aggregate supply curve to the right.

Explanation:

Supply side economics refers to the macroeconomic theory which states that the economic growth in an economy can be improved by the reduction in taxes and decrease in regulations.

Such Economists believe that this is vital as the consumers will benefit as there'll be an increase in the supply of goods from the manufacturers. Also, there'll be reduction in prices due to less taxes being paid. Also, there'll be an increase in employment.

Discuss the six HRM practices from which companies can choose for implementing their strategy. Illustrate by specific examples.

Answers

Answer:

Explanation:

Bạn ơi có câu trả lời ko cho mình xin với

What expenses typically come first in the "Expenses" section of an income statement? a. Non-operating expenses b. Irregular expenses c. Selling, general and administrative expenses d. Tax expenses

Answers

Answer:

c. Selling, general and administrative expenses

Explanation:

Financial statements can be defined as a document used for the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors. These includes balance sheet, statement of retained earnings and income statement.

The expense recognition principle is an accounting principle which is typically used on accrual basis accounts and it states that expenses incurred by an individual or business entity should be recognized and matched in the same period with respect to the revenues they are related to.

Selling, general and administrative expenses typically come first in the "Expenses" section of an income statement.

When Job 117 was completed, direct materials totaled $13,116; direct labor, $22,560; and factory overhead, $16,788. A total of 2,186 units were produced at a per-unit cost of a.$35,676 b.$24 c.$52,464 d.$2,186

Answers

Answer:

Unitary cost= $24

Explanation:

Giving the following information:

Total direct material= $13,116

Direct labor= $22,560

Factory overhead= $16,788

Number of units= 2,186

First, we need to calculate the total cost:

Total cost= 13,116 + 22,560 + 16,788

Total cost= $52,464

Now, the unitary cost:

Unitary cost= total cost / number of units

Unitary cost= 52,464 / 2,186

Unitary cost= $24

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