Business, 26.11.2019 19:31 dcardenas2005

An article in the wall street journal gives the following explanation of how products were traditionally priced at parker-hannifin corporation: "for as long as anyone at the89-year-old company could recall, parker used the same simple formula to determine prices of its 800,000 partslong dash—fromheat-resistant seals for jet engines to steel valves that hoist buckets on cherry pickers. company managers would calculate how much it cost to make and deliver each product and add a flat percentage on top, usually aimed for about 35%. many managers liked the method because it was ." source: timothy aeppel, "changing the formula: seeking perfect prices, ceo tears up the rules," wall street journal, march 27, 2007, p. a1. is it likely that this system of pricing maximized the firm's profits? briefly explain. this system of pricing likely

a. maximizes profits because it results in the same markup for products that are more price elastic and less price elastic.
b. maximizes profits because it is easy to identify the cost of producing a particular product.
c. does not maximize profits because production occurs where marginal revenue equals marginal cost.
d. does not maximize profits because it ignores consumer demand.
e. both a and b.

Answers: 1

Show answers

Another question on Business

Business, 21.06.2019 18:20

Amathematical approximation called the rule of 70 tells us that the number of years that it will take something that is growing to double in size is approximately equal to the number 70 divided by its percentage rate of growth. thus, if mexico's real gdp per person is growing at 7 percent per year, it will take about 10 years(=70/7) to double. apply the rule of 70 to solve the following problem. real gdp per person in mexico in 2005 was about $11,000 per person, while it was about $44,000 per person in the u.s. if real gdp per person in mexico grows at the rate of 5 percent per year: how long will it take mexico's real gdp per person to reach the level that the united states was at in 2005? (hint: how many times would mexico's 2005 real gdp per person have to double to reach the u.s.'s 2005 real gdp per person?

Answers: 3

Answer

Business, 22.06.2019 01:30

Eliminating entries (including goodwill impairment) and worksheets for various years on january 1, 2013, porter company purchased an 80% interest in the capital stock of salem company for$850,000. at that time, salem company had capital stock of $550,000 and retained earnings of $80,000.differences between the fair value and the book value of the identifiable assets of salem company were asfollows: fair value in excess of book valueequipment$130,000land65,000inventory40,000the book values of all other assets and liabilities of salem company were equal to their fair values onjanuary 1, 2013. the equipment had a remaining life of five years on january 1, 2013. the inventory was sold in2013.salem companyâ€™s net income and dividends declared in 2013 and 2014 were as follows: year 2013 net income of $100,000; dividends declared of $25,000year 2014 net income of $110,000; dividends declared of $35,000required: a.prepare a computation and allocation schedule for the difference between book value of equity acquired andthe value implied by the purchase price.b.present the eliminating/adjusting entries needed on the consolidated worksheet for the year endeddecember 31, 2013. (it is not necessary to prepare the worksheet.)lo6lo1

Answers: 1

Answer

Business, 22.06.2019 16:10

From what part of income should someone take savings?

Answers: 2

Answer

Business, 22.06.2019 19:10

Pam is a low-risk careful driver and fran is a high-risk aggressive driver. to reveal their driver types, an auto-insurance company a. refuses to insure high-risk drivers b. charges a higher premium to owners of newer cars than to owners of older cars c. offers policies that enable drivers to reveal their private information d. uses a pooling equilibrium e. requires drivers to categorize themselves as high-risk or low-risk on the application form

Answers: 3

Answer

You know the right answer?

An article in the wall street journal gives the following explanation of how products were tradition...

Questions