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- In our modern world, in which fewer people carry actual cash, what benefit to the seller does a cash discount carry? Why? Discuss the benefit to the sellerExplain why it is a benefitThe markup on a new diamond ring should be 25% based on selling price. If the seller paid $4,325.00 for one, then how much should it be sold for to achieve the desired markup?What is the difference between the effective interest method and the straight line method when amortizing either a discount or a premium?
- When you exit an arrivals terminal at an airport, you're greeted by a lineup of cars with drivers ready to take you to whatever destination you choose. While it's tempting to hop into one, telling the driver to take you to your destination at full price, if you instead walk to the far end of the terminal, wait in a line, and then wait for a car to arrive, you'll pay a significantly lower price. What hurdle must you clear to get this discount? haggling fluctuating prices inconvenience alternative versionsThe price a company charges will fall somewhere between one that is too low to produce a profit (price ceiling) and one that is too high to produce any demand (price floor). " True FalseHow do inventory control policies impact a company's cash flow and profitability?
- Which of the following is not true in terms of contributing positively to the business model of leasing assets for a lessor? Select one: a. Often a lessor can sell an asset that is returned at the end of the lease for more than the residual value included in pricing the lease. b. A lessor cannot claim capital cost allowance on assets it leases. c. A lessor who manufactures assets can use leasing as a way to sell its inventory to lessees that otherwise would not be able to afford to purchase the asset from them outright. d. A lessor retains legal ownership of assets it leases which is important in situations where lessees do not honour their lease commitments. e. None of the above.Type A and Type B cash flows are suited for repaying a different kind of loan.What type of cash flows should it be for financing a large inventory purchase to take advantage of a one-time discount offered by suppliers?Describe what you are selling (1 item only): What is the price you will sell at to sustomer: How will you explain to potential customers WHY they should buy your product? If your total costs to run the company is $5,000 per month, how many do you have to sell each month to cover your costs? Show your calculation! Do you think this is a realistic number to achieve each month? Explain your answer. In case sales go slower than expected, come up with a volume discount offer for customers and describe how it will work in the box below: (for example if you buy 5 items instead of 1, you will give customer a 10% discount).
- What would it cost an insurance company to replace a family’s personal property that originally cost $113,000? The replacement costs for the items have increased by 12 percent.A consumer purchases a coffee maker from a retailer for $90. The retailer’s markup is 30%, and the wholesaler’s markup is 10%, both based on selling price. For what price does the manufacturer sell the product to the wholesaler?The terms shadow price and reduced cost mean the same thing. Your answer: True O False Clear answer