Markup pricing, adding an amount to cost to cover expenses and profit, is one of the most common pricing methods used by intermediaries to establish a selling price.
Answer the following statement true (T) or false (F)
True
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Out-group members are likely to have ______.
a. good relations with other out-group members b. good relations with in-group members c. poor relations with other out-group members d. good relations with leaders
Achieving an increased return on common stock by paying dividends on preferred stock at a rate that is less than the rate of return earned with the assets invested from the preferred stock issuance is called:
A. Discount on stock. B. Preemptive right. C. Capital gain. D. Financial leverage. E. Premium on stock.
Why are fixed costs generally more relevant in long-run decisions than short-run decisions?
Mandalay Hotel bases its budgets on guest-days. The hotel's static budget for August appears below: Budgeted number of guest-days 4,300Budgeted variable costs: Supplies (@$9.60 per guest-day)$41,280Laundry (@$9.40 per guest-day) 40,420Total variable cost 81,700Budgeted fixed costs: Wages and salaries 57,190Occupancy costs 52,030Total fixed cost 109,220Total cost$190,920?The total variable cost at the activity level of 5,000 guest-days per month should be:
A. $81,700 B. $95,000 C. $109,220 D. $127,000