Use this information for questions that refer to the Pricing 1 case. (WPI) case.As a project for her marketing class, Emily Washington is researching how five local businesses price their products. The following are brief sketches of what she has learned about each company:At Bella Computers, Emily has discovered that the company earned a 6 percent return on investment this year and wants to increase this to 9 percent next year. To its retailer customers, Bella Computers gives cash discount terms of 2/10, net 30. It also gives retailers a 3 percent reduction on the invoice amount for advertising Bella products locally. Bella gives retailers' salespeople 2 percent of the sale price for each Bella Computer they sell.At Ross Pharmaceuticals, she learned that the company has invested
heavily in developing a new product that recently received a patent. Because cash is tight, the company wants to achieve a rapid return on its investment. The new patented product is badly needed in the market, so a very inelastic demand curve is expected.Digital Imaging makes photographic prints for wedding photographers. It is very concerned about competitor reactions to its pricing, so it has selected prices that will not draw the attention of the competition and will not start a price war. Digital Imaging offers customers an 8 percent discount if their purchases exceed $20,000 a year.Jack's One-Hour Cleaners recently opened for business. The company invested a lot of money in new equipment and feels that it has to quickly get "at least 10 percent market share to stay in the game." This need obviously influences the company's pricing decisions. Jack's also plans to offer customers 20 percent discounts on any order over $20.National Printing Equipment (NPE) produces equipment that helps to print newspapers and magazines. The company sells directly to printers and through wholesalers. Its salespeople negotiate prices with individual customers and often have to match competitors' prices. NPE has a new product-the Gutenberg NP201-with some competitive advantages now, but competitors are expected to follow quickly with similar products. The new product is being introduced into a market with elastic demand. Regarding freight charges for its equipment, NPE's invoice reads, "Seller pays the cost of loading equipment onto a common carrier. At the point of loading, title to such products passes to the buyer, who assumes responsibility for damage in transit, except as covered by the transportation agency." If one of Bella Computers' retail customers did not pay the invoice for 30 days, the customer would-in effect-be borrowing at what annual interest rate?
A. 27 percent
B. 9 percent
C. 72 percent
D. 36 percent
E. 18 percent
Answer: D
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Marvin is driving when he has an accident. Robin, who is driving behind him, sees the accident and stops to help. She pulls Marvin from the burning car and administers CPR, saving his life. Marvin is a wealthy landowner and wants to reward Robin, so he gives her a home with the understanding that when she dies, the home will go back to Marvin or, if Marvin is deceased, to Marvin's heirs. Marvin has granted Robin a
A. fee simple defeasible. B. fee simple. C. fee tail. D. life estate.
Assertions about classes of transactions and events for the period under audit include:
A. occurrence, completeness, and cutoff. B. existence, completeness, and accuracy. C. occurrence, completeness, and valuation and allocation. D. existence, completeness, and classification.
EMathews, Inc generated $200,000 in sales revenues and incurred fixed costs of $30,000 . If the break-even sales is $ 140,000, what is the margin of safety ratio for Clarifex Company?
a. 75% b. 30% c. 40% d. 60%
In Bowman v. Monsanto, where Bowman used Monsanto's patented Roundup Ready seeds and, in violation of the contract provided by Monsanto, kept seeds from his crop to use next year so that the seeds had the genetic composition of the Monsanto seeds. The Supreme Court held that:
a. Monsanto's patent only extended to seeds it sold so there was no infringement b. Monsanto's patented product could be sold with restrictions, which Bowman violated c. Monsanto's patent had expired by the time of the litigation, so the case was moot d. none of the other choices are correct