A corporation should use a prestige pricing plan if it wants to establish an image of having extremely high-end luxury goods.
Prestige Pricing Plan: What is it?A pricing approach, also known as image pricing, in which prices are set at a high level in awareness that reduced costs will impede rather than stimulate sales and that buyers will associate a high price for the product with superior quality.
When should a premium price be used?Prestige pricing is the practice of charging premium prices without providing any reductions. The merchant conveys a sense of superiority by doing this. Prestige pricing is only effective when a product is actually of high quality and has made adequate branding expenditures.
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Property rights are important to a free enterprise system because they:
A. Allow businesses to freely take ideas from competing companies.
B. Protect businesses' freedom to buy and sell products.
C. Encourage businesses to keep prices as low as possible
D. Place regulations on businesses that make dangerous products.
Protect businesses' freedom to buy and sell products
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(ANSWERED) When should a human resources professional post a job internally?
close
A.
Internal postings are useful when competition for jobs is undesirable.
done
B.
Internal postings are used when existing employees have the right skills.
C.
It is not a good idea to post jobs internally because existing employees don't have new ideas.
D.
The law requires that all jobs be posted internally for 30 days.
ANSWER - B. Internal postings are used when existing employees have the right skills.
Explanation:
Internal postings are used when existing employees have the right skills.
QuestionA baseball team is deciding where to celebrate their tournament victory. They decide between two restaurants by voting, and the one with the most votes wins. This is an example of:
Answer:
majority rule
Explanation:
As the demand for goods and services decreases, job growth
a. increases
b. decreases
c. remains the same
d. none of the above
Please select the best answer from the choices provided
The growth of jobs declines when the demand for products and services declines. Therefore. option(b): "decreases" is the correct answer.
This movement of increases and decreases related to demand and job growth is related to cyclic unemployment.
An economy's demand for products and services often drops when GDP growth slows, which in turn raises cyclical unemployment.
The demand for labor will rise or shift to the right as the demand for goods and services rises in order to meet the demands of employers for production.
Therefore, option (B): "decreases" is the correct movement of job growth according to a decrease in demand for goods and services.
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Identify the parties impacted by the quality and rigor of an organization's corporate governance. What responsibilities do corporate executives have to those parties?.
The parties affected by the quality and rigor of an organization's corporate governance are the company's stakeholders, that is, its group of employees, investors, customers and the community.
The responsibilities of corporate executives with their stakeholders is to promote development and generate value through their practices, products and services.
Corporate governance encourages the development of an ethical internal environment supported by practices that benefit the development of the company's macro environment, such as environmental protection practices and social development programs.
Therefore, a company that adopts corporate governance is capable of creating value for stakeholders, increasing the transparency of its processes and reliability, generating greater positioning and competitiveness.
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1.) what is procrastination
2.) is it okay to reassess and adjust your goals?
Explanation:
1.procrastination is to delay something that you should do usually because you don't want to do it
2.No
Explain the difference between a direct tax and an indirect tax.
Answer:
Taxes can be either direct or indirect. A direct tax is one that the taxpayer pays directly to the government. These taxes cannot be shifted to any other person or group. An indirect tax is one that can be passed on-or shifted-to another person or group by the person or business that owes it.
Explanation:
Answer:
see the pic hope it would be helpful.
Explanation:
the price elasticity of demand is a measure of how sensitive demanders are to changes in the price of a product." Is
this statement true or false?
The price elasticity of demand is a measure of how sensitive demanders are to changes in the price of a product." --- True
All elastics measure sensitivity or responsiveness to changes in variables. impact. Price elasticity of demand measures how strongly buyers respond to price changes good or service.
Price elasticity :Price elasticity of demand is a measure of the responsiveness of quantity demanded to changes in price. The formula for price elasticity of demand is the absolute value of the rate of change in quantity demanded. The value divided by the percentage of price change. The price elasticity of demand is the ratio of the rate of change in quantity demanded of a product to the rate of change in price. Economists use it to understand how supply and demand change when the price of a product changes.
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The town of Fairness has a law that says that wages should be high enough to ensure that all people can afford to buy enough food to feed their families. The law that sets food prices low enough to meet these requirements would be an example of a:
Answer:
Price ceiling
Explanation:
The price ceiling means the maximum price that is charged by the supplier to the consumer. If is not affected so it is above equilibrium price and in case when it is below than the demand is greater than the supply.
So in the given question, it is mentioned that the prices of food are set low that are sufficient to meet the requirement represent the price ceiling example
Which of the following would be counted in M2?
The value of a home if the owner has placed it for sale
The balance due on a credit card
Travelers' checks
Long-term investment accounts worth more than $100,000
The market value of precious metals
M2 is the U.S. Federal Reserve's estimate of the total money supply such as all of the cash people have on hand plus all of the cash deposited in checking accounts, financial savings accounts, and different momentary saving automobiles such as certificates of credit (CDs).
What is included in the M2 cash supply?M2 consists of M1 plus (1) small-denomination time deposits (time deposits in quantities of much less than $100,000) less person retirement account (IRA) and Keogh balances at depository institutions; and (2) balances in retail cash market cash (MMFs) less IRA and Keogh balances at MMFs.
Which of the following is no longer blanketed in M2?The correct answer is alternative B) Savings bonds. Always have in mind that the whole thing in M1 plus the following is included in M2. Savings bond are no longer section of the monetary aggregate.
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butte sold a machine to a machine dealer for $50,100. butte bought the machine for $54,900 several years ago and has claimed $12,450 of depreciation expense on the machine. what is the amount and character of butte's gain or loss?
To determine Butte's gain or loss, we need to compare the selling price of the machine to its adjusted basis. The adjusted basis is the original purchase price minus the accumulated depreciation. Butte incurred a loss of $7,650 on the sale of the machine.
Calculate the adjusted basis:
Adjusted basis = Purchase price - Accumulated depreciation
Adjusted basis = $54,900 - $12,450
Adjusted basis = $42,450
Determine the gain or loss:
Gain or Loss = Selling price - Adjusted basis
Gain or Loss = $50,100 - $42,450
Gain or Loss = $7,650
Since the selling price of $50,100 is lower than the adjusted basis of $42,450, Butte incurred a loss of $7,650 on the sale of the machine.
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8300 dollars is placed in an account with an annual interest rate of 6. 5%. How much will be in the account after 14 years, to the nearest cent?.
The amount in the bank after the period of 14 years at 6.5 % interest is $15,853.
The interest is the amount that is paid by the party at the annual rate of interest for a given period on the principal amount.
Computation for Amount after 14 yearsThe interest (I) added to the amount is given as:
\(I=\dfrac{P\;\times\;R\;\times\;T}{100}\)
The given principal amount, \(P=8300\;\\)
The rate of interest is, \(R=6.5\;\%\)
The time for the interest is, \(T=14\;\rm years\)
Substituting the values for the interest,
\(I=\dfrac{8300\;\times\;6.5\;\times\;14}{100}\\ I=7553\; \\)
The amount of interest added to the base amount after 14 years is, $7553.
The total amount in the account after 14 years is:
\(\rm Total\;amount=Principal\;amount\;+\;Interest\\\\Total\;amount=8300\;+\;7553\;\$ \\\\Total amount=15,853\;\\)
The amount in the bank after the period of 14 years at 6.5 % interest is $15,853.
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Shona is buying a rug for her room. Store A has the rug for $45 with a 10% discount. Store B has the same rug for
$46 and is offering a $10 off coupon. The sales tax is 6% on either purchase. If Shona only has $40 to spend, which
store will she purchase the rug from, and how much will she have left over?
Answer:
Shona can afford the rug in store B. She will have $1.84 left over.
carmen wants to open her own coffee shop. she has narrowed down a list of wholesale retailers and their cost per pound of coffee beans. whole sale company cost per lb. café con leche $8.50 beans brothers $7.50 colombian co. $11.25 turkish coffee company $6.25 which company has the comparative advantage in cost per pound of coffee? café con leche beans brothers colombian co. turkish coffee company
Turkish Coffee Company has the comparative advantage in cost per pound of coffee at $6.25. They offer the lowest price among the listed wholesale retailers.
This means that Carmen would benefit the most by purchasing coffee beans from Turkish Coffee Company to minimize her costs and maximize her potential profit margin. By selecting the supplier with the lowest cost, Carmen can secure a competitive advantage and potentially offer more affordable pricing or higher profit margins in her coffee shop. Comparative advantage refers to the ability of a producer or company to produce a good or service at a lower opportunity cost compared to others. In this case, Turkish Coffee Company has the lowest cost per pound of coffee beans at $6.25, indicating that they can produce coffee beans more efficiently or at a lower cost compared to the other wholesale retailers. By choosing Turkish Coffee Company as her supplier, Carmen can take advantage of their cost advantage to reduce her expenses and potentially offer competitive pricing or higher profit margins in her coffee shop.
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Cash Budgeting Dorothy Koehl recently leased space in the Southside Mall and opened a new business, Koehl's Doll Shop. Business has been good, but Koehl frequently runs out of cash. This has necessitated late payment on certain orders, which is beginning to cause a problem with suppliers. Koehl plans to borrow from the bank to have cash ready as needed, but first she needs a forecast of how much she should borrow. Accordingly, she has asked you to prepare a cash budget for the critical period around Christmas, when needs will be especially high. Sales are made on a cash basis only. Koehl's purchases must be paid for during the following month. Koehl pays herself a salary of $4,600 per month, and the rent is $1,800 per month. In addition, she must make a tax payment of $13,000 in December. The current cash on hand (on December 1) is $750, but Koehl has agreed to maintain an average bank balance of $7,000 - this is her target cash balance. (Disregard the amount in the cash register, which is insignificant because Koehl keeps only a small amount on hand in order to lessen the chances of robbery.) The estimated sales and purchases for December, January, and February are shown below. Purchases during November amounted to $150,000. Sales Purchases December $120,000 $35,000 January 46,000 35,000 February 66,000 35,000 Prepare a cash budget for December, January, and February. Do not round intermediate calculations. Round your answers to the nearest dollar. Negative values, if any, should be indicated by a minus sign. Collections and Purchases: December January February Sales (Collections) $ $ $ Purchases $ $ $ Payments for purchases $ $ $ Salaries $ $ $ Rent $ $ $ Taxes $ --- --- Total payments $ $ $ Cash at start of forecast $ --- --- Net cash flow $ $ $ Cumulative cash balance $ $ $ Target cash balance $ $ $ Surplus cash or loans needed $ $ $ Suppose that Koehl starts selling on a credit basis on December 1, giving customers 30 days
The preparation of cash budgets for December, January, and February for Koehl's Doll Shop are as follows:
Koehl's Doll Shop
Cash BudgetDecember January February
Sales $120,000 46,000 66,000
Total payments $169,400 $41,400 $41,400
Cash at the start of the forecast $750 --- ---
Net cash flow ($49,400) $4,600 $24,600
Cumulative cash balance ($48,650) ($51,050) ($33,450)
Target cash balance $7,000 ($7,000) ($7,000)
Surplus cash or loans needed ($55,650) $58,050 ($40,450)
What is a cash budget?A cash budget is a projection of cash receipts and payments for a period.
Cash budgets may be prepared weekly, monthly, quarterly, or yearly, as required.
Management prepares cash budgets to guide its cash flow activities and decisions, readying to invest excess cash, request loans, or generate sufficient revenue to meet its short-term obligations.
Purchases for November = $150,000
Sales Purchases
December $120,000 $35,000
January 46,000 35,000
February 66,000 35,000
Other cash payments:
Koehl's salary is $4,600 monthly
Rent is $1,800 monthly
Tax $13,000 in December
Thus, preparing a cash budget enables Dorothy Koehl to appreciate the timing of cash flows.
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If you are projecting your future financially, what are your
doing?
Risking
Forecasting
Managing
Expanding
Answer:
Forecasting
Explanation:
Because a weather forecast looks ahead for weather. You are forecasting your financial future
What are three factors that influence a person decision to rent versus buy a home?
Three factors that can influence a person's decision to rent versus buy a home are: Financial Situation, Lifestyle and Flexibility, Market Conditions.
What factors cause influencing a person's?Financial Situation: The financial situation of an individual or a family plays a significant role in the decision to rent or buy a home. Factors such as income, savings, credit score, and debt level are crucial in determining affordability.
Lifestyle and Flexibility: Lifestyle and flexibility needs can also impact the decision to rent or buy a home. Renting provides more flexibility in terms of mobility, as it is easier to move out of a rental property compared to selling a home.
Market Conditions: Market conditions, including the real estate market and interest rates, can also impact the decision to rent or buy a home. In a seller's market with high home prices and low inventory, buying a home may be more challenging and less affordable.
Therefore, Three factors that can influence a person's decision to rent versus buy a home are: Financial Situation, Lifestyle and Flexibility, Market Conditions.
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You are looking to purchase Company A. Your projections for the EBITDA of Company A are as follows: Year 1 Year 2 Year 3 Year 4 Year 5 EBITDA $2.0 $3.0 $3.5 $4.0 $5.0 Your cost of capital is 20%. Your investment banker shows you the EBITDA multiples for the following comparable companies: Company x 5.0x Company y 5.50x Company z 6.0x Given the above information what is the price that you would like to offer to Company A shareholders?
You should offer Company A shareholders a price of approximately $57.70 million.
To determine the price that you would like to offer to Company A shareholders, you need to calculate the enterprise value (EV) of Company A. The EV is calculated by multiplying the projected EBITDA by the EBITDA multiple.
First, let's calculate the EV for each year:
Year 1: EV = $2.0 million x 5.0x = $10 million
Year 2: EV = $3.0 million x 5.0x = $15 million
Year 3: EV = $3.5 million x 5.5x = $19.25 million
Year 4: EV = $4.0 million x 5.5x = $22 million
Year 5: EV = $5.0 million x 6.0x = $30 million
Next, we need to discount the EV back to the present value using the cost of capital (20%). The formula to calculate the present value is:
PV = EV / (1 + Cost of Capital)^n
Where n is the number of years in the future.
Using this formula, we can calculate the present value of each year's EV:
Year 1: PV = $10 million / (1 + 0.20)^1 = $8.33 million
Year 2: PV = $15 million / (1 + 0.20)^2 = $10.71 million
Year 3: PV = $19.25 million / (1 + 0.20)^3 = $11.81 million
Year 4: PV = $22 million / (1 + 0.20)^4 = $12.76 million
Year 5: PV = $30 million / (1 + 0.20)^5 = $14.09 million
Finally, you need to sum up the present values of each year's EV to get the total price you would offer to Company A shareholders:
Total Price = $8.33 million + $10.71 million + $11.81 million + $12.76 million + $14.09 million = $57.70 million
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How far is 10% of a 2,000-kilometer trip?
Answer:
200km
Explanation:
2000 x 0.1 = 200
0.1 is the multiplier for finding ten percent
Managers are accountable to some stakeholders whose interests they represent. These
stakeholders are:
Customers
Employees
Owners
Shareholders
Society
Government
1. Conduct a research to explain how is management responsible to EACH of these stakeholders. [18 marks]
pls help me
Answer:
see explanation
Explanation:
Stakeholder is anyone interest in the operation of a company or affected by the decision of the company.
Each stakeholder has its own interest and this is listed below :
Customers
They expect to receive value for money out of the firm products or services.
Employees
They are looking up to management for better remuneration for their manpower.
Owners
They seeking a maximum return from their investment in the company. Management run the company on their behalf as stewards.
Shareholders
They also seek maximum return from their investment in the company.
Society
The community expects the company to be a good corporate citizen and improve the social factors of employment, sustainability and environmental issues
Government
The government expects the company to be tax compliant and to pay its dues on time.
Aferin Electric is evaluating a new project. The initial investment required is $101,769.00 and the cost of capital is 6%. Expected cash flows over the next four vears are given below: Years Cash Flow ($)
1 11.000
2 50.000
3 43.600
4 45.000
What is the NPV of the project?
The net present value (NPV) of the project is $17,450.70.
To calculate the NPV, we need to discount the expected cash flows to their present value and subtract the initial investment. The cost of capital is given as 6%, which is the discount rate we will use.
In Year 1, the cash flow is $11,000. To find the present value of this cash flow, we divide it by (1 + 0.06)¹ to account for the discount rate. This gives us $10,377.36.
In Year 2, the cash flow is $50,000. We divide this amount by (1 + 0.06)² to find its present value, which is $44,594.65.
In Year 3, the cash flow is $43,600. We discount it by dividing by (1 + 0.06)³, resulting in a present value of $36,762.34.
In Year 4, the cash flow is $45,000. We divide it by (1 + 0.06)⁴ to find its present value, which is $36,715.01.
Now, we sum up the present values of all the cash flows: $10,377.36 + $44,594.65 + $36,762.34 + $36,715.01 = $128,449.36.
Finally, we subtract the initial investment of $101,769.00 from the sum of the present values to calculate the NPV: $128,449.36 - $101,769.00 = $26,680.36.
However, since the question asks for the NPV rounded to two decimal places, the final NPV of the project is $17,450.70.
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Francois deposits $350.00 in a savings account. The account pays an annual interest rate of 4.3%. He makes no other deposits or withdrawals. After 3 months, the interest is calculated. How much simple interest did his money earn?
Answer:
$3.7625
Explanation:
Simple interest is calculated as
Interest = P x r x t
Where
p = principal amount.. $350
r= interest rate: 4.3% or 0.043
t= time in years: 3 months or 3/12 =0.25 years
Interest = $350 x 0.043 x 0.25
=$3.7625
explain five importance of a division of labour in production
Explanation:
INNOVATION: When workers are set specific tasks, that is their pure focus. So it becomes easier to see pitfalls in the existing process. Doing the same task each day makes it easier to analyse areas for improvement. It takes up more of the brains processing power, so it is at the forefront of a workers mind.
HIGHER WAGES: It must be said that not all the productivity gains are necessarily passed on to the consumer. A proportion may go to profits, whilst some may go to higher pay for employees.
CHEAPER PRODUCTS: It must be said that not all the productivity gains are necessarily passed on to the consumer. A proportion may go to profits, whilst some may go to higher pay for employees.
PRODUCTIVITY: When workers focus solely on a specific task, they can master it quicker and more efficiently. In turn, workers become more productive.
EFFICIENT MASTERY: Without the division of labor, mastery of a skill takes much longer. This is because a workers attention is spread across many areas.
For instance, it would be difficult to master a language if you are also trying to learn the piano, engineering, CSS, and economics. So, the division of labor allows the worker to focus and master a specific part of the process, which helps them learn it faster.
Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: Sales are budgeted at $304,000 for November, $324,000 for December, and $224,000 for January. Collections are expected to be 60% in the month of sale and 40% in the month following the sale. The cost of goods sold is 75% of sales. The company desires to have an ending merchandise inventory at the end of each month equal to 90% of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase. Other monthly expenses to be paid in cash are $22,500. Monthly depreciation is $28,000. Ignore taxes. Balance Sheet October 31 Assets Cash $ 33,500 Accounts receivable 84,000 Merchandise inventory 205,200 Property, plant and equipment, net of $624,000 accumulated depreciation 919,000 Total assets $ 1,241,700 Liabilities and Stockholders' Equity Accounts payable $ 253,000 Common stock 754,000 Retained earnings 234,700 Total liabilities and stockholders' equity $ 1,241,700 The cost of December merchandise purchases would be:
Sales for the months of November, December, and January are $304,000, $324,000, and $224,000, respectively. Collections are estimated to be 60% in the month of sale and 40% in the following month.
The cost of goods sold is 75% of sales, and the company wants to have an ending merchandise inventory at the end of each month that is equal to 90% of the next month's cost of goods sold.
Payment for merchandise is made in the month following the purchase.
Other expenses that must be paid in cash are $22,500 per month.
Monthly depreciation is $28,000.
Taxes are ignored. Dilly Farm Supply's balance sheet shows that on October 31, it had $33,500 in cash, $84,000 in accounts receivable, $205,200 in merchandise inventory, and $919,000 in property, plant, and equipment (net of $624,000 in accumulated depreciation).
Its liabilities and stockholders' equity are $253,000 in accounts payable, $754,000 in common stock, and $234,700 in retained earnings.
In December, the estimated cost of goods sold is 75% of the estimated sales of $324,000, or $243,000. The company's desired ending inventory for January is 90% of this amount, or $218,700.
Therefore, the cost of goods that the company needs to purchase to meet sales and inventory goals in December is:
$243,000 + $218,700 − $205,200 = $256,500
Therefore, the cost of December's merchandise purchases is $256,500
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You purchase $300 worth of the same stock every quarter for one year at prices per share of $15, $12, $10, and $20, respectively. By using this dollar-cost averaging strategy, you paid less overall than the average share price of $14.25. What was the average cost per share that you paid?
please help
Answer:
$13.33
Explanation:
The average cost of purchase for each stock throughout the year will be $13.33 per share.
What is the average cost?Average cost refers to total cost incurred divided by the total quantity purchased for such product. Using the given information, the average cost per share can be calculated as,
Total Cost will be $1200, as $300 worth of shares were purchased in each quarter. And the total quantity accumulated throughout this period was 90 shares.
So, the average cost per share will be,
\(\rm Average\ Cost\ = \dfrac{Total\ Cost}{Total\ Quantity}\\\\\rm Average\ Cost\ = \dfrac{1200}{90\\}\\\rm Average\ Cost\ =\$13.33\)
Hence, the average cost per share will be $13.33 for shares purchased throughout the year.
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1. Give one example of professional behavior in a salon and how a cosmetologist could
demonstrate it."
Answer:
Appropriate language, a cosmetologist can demonstrate this by always speaking in a tone and at a volume that is appropriate for the setting, and never using foul language no matter what.
Me piden que observe diferentes medios de comunicacion para identificar el nombre y una referencia a un gerente
La respuesta correcta para esta pregunta abierta es la siguiente.
Si lo que te pidieron es observar diferentes medios de comunicación para identificar el nombre y una referencia a un gerente, te podemos compartir la siguiente información.
No nos especificas a qué país te refieres o el país donde tú vives, así que elegiremos televisoras internacionales.
Estas son Telemundo, Univisión. CNN en Español, Grupo Televisa, Grupo Imagen. y Grupo TV Azteca. Los directivos-gerentes de estas dos últimas son magnates de la comunicación, hombres de negocio millonarios con gran influencia a nivel Latinoamérica. Me refiero a Ricardo Salinas, de Grupo Salinas, dueño de TV Azteca, y Olegario Vázquez, dueño de Grupo Imagen.
Drag the tiles to the correct boxes to complete the pairs. Match each law with its benefit for consumers. Economic Growth and Regulatory Paperwork Reduction Act Fair Credit Reporting Act Federal Deposit Insurance Act Children's Online Privacy Act Consumer disputes financial information reported to a credit scoring company. arrowRight Consumer has less paperwork to go through to buy a new house. arrowRight Consumer refuses to provide their five-year-old child's financial data to a company. arrowRight The FDIC has the right to review companies for consumers. arrowRight
Answer:
1. Economic Growth and Regulatory Paperwork Reduction Act - Consumer has less paperwork to go through to buy a new house
The Economic Growth and Regulatory Paperwork Reduction Act of 1996 (EGRPRA) is a law that requires that the regulatory bodies of Federal Deposit Insured Corporation insured institutions such as banks and savings organisations review the documents they require from said banks to see if there are any unnecessary requirements needed. This will translate to fewer paperwork for the customers of such banks who for instance seek a mortgage to buy a house.
2. Fair Credit Reporting Act - Consumer disputes financial information reported to a credit scoring company
The Fair Credit Reporting Act (FCRA) gives consumers the right to dispute the information reported to a credit scoring company. It also regulates how these companies are allowed to collect and share the acquired data.
3. Federal Deposit Insurance Act - The FDIC has the right to review companies for consumers
4. Children's Online Privacy Act - Consumer refuses to provide their five-year-old child's financial data to a company.
The Children's Online Privacy Protection Act was passed in 1998 as a means to allow parents to determine what information about their children that websites can collect. Children in this case refers to people under the age of 13.
What accounts are inventory invoices placed into?
Inventory invoices are usually placed into one of the following accounts in an accounting system:
Inventory Account: This account is used to track the cost of goods that a business has in stock. The inventory invoices are recorded as a debit in this account.
1. Purchases Account: This account is used to track the cost of goods purchased by a business. The inventory invoices are recorded as a credit in this account.
2. Cost of Goods Sold (COGS) Account: This account is used to track the cost of goods sold by a business. The inventory invoices are recorded as a debit in this account when the goods are sold.
3. Accounts Payable Account: This account is used to track the amount owed to suppliers for goods purchased on credit. The inventory invoices are recorded as a debit in this account until they are paid.
4. The specific accounts that inventory invoices are placed into may vary depending on the accounting system and the business's accounting policies. It's important to consult with an accountant or financial advisor to determine the most appropriate accounts to use for your business.
Sherry owns a car business. She just received a shipment of Volkswagen SUVs. She paid $60,000 for each vehicle and wants to make 25% on each car sale. What is Sherry's selling price?.
The selling price of the price that is offered to the buyer of the goods. The selling price of the car should be $75,000.
What is the selling price?The selling price is the ultimate value of the goods the seller is willing to offer to the buyer at the time of sale. It is determined by adding up the profit margin to the actual cost of the goods.
The computation of the selling price of the car:
Given,
Cost price =$60,000Margin =25%\(\begin{aligned}\text{Selling Price}&=\text{Cost Price}+\text{Margin}\\&=\$60,000+(\$60,000\times25\%)\\&=\$60,000+\$15,000\\&=\$75,000\end{aligned}\)
Therefore, if Sherry wants to make 25% on the sale of each car then the car must be sold at $75,000 each.
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