Briefly explain the concept of economic, profitmaximizing pricing. It may be helpful to use graphs in your explanation.

Q: What are the optimal prices and profits for pure bundling.

A: Financial Management: Financial management comprises of two words i.e. Finance and management.…

Q: financial variables that affect the price-earning ratio

A: The price-to-Earning ratio is derived by dividing the Market Price of Share by Earning Per Share.…

Q: Explain profit margin

A: Profit margin is one of the benefits proportions that's generally utilized to assess the level to…

Q: How to correctly find the operating profit? Show an example please.

A: The calculation of operating profit is an important aspect of understanding the financial position…

Q: Describe the ways to increase sales and profitability

A: Sales indicate the revenue generated by the business entity in consideration of offering their…

Q: Explain the difference between price-takers and price-setters.

A: When a company cannot dictate prices then it is known as price taker. On the contrary, when a…

Q: What is cost-plus pricing? Who uses it?

A:

Q: What formula do you use to calculate ROI?

A:

Q: How to calculate profitability analysis?

A: Sales revenue: It is the revenue earned by a business on selling the goods or providing services to…

Q: Explain the goal of yield management

A: Yield management is a kind of pricing strategy.It is based on the understanding of the behavior of…

Q: Describe following:* Market approach* Income approach* Cost approach

A: Market Approach:   Market approach is a method used to assess the value of an asset depending on the…

Q: Arbitrage pricing theory is model developed to be used by:

A: Arbitrage is the practice of taking positive expected return from overvalued or undervalued…

Q: A quantitative analysis enables a decision maker to put a “price” on the sum total of the…

A: Definition: Quantitative analysis: A quantitative analysis focuses on the factors in a decision…

Q: Discuss cost-benefit analysis and financial analysis tools

A: Answer: Cost-benefit analysis: It is nothing but a process of decision making that balances the…

Q: Define the following terms, using graphs or equations to illustrate youranswers wherever feasible:…

A: APT                                                                              It is a model based…

Q: Describe the downward demand spiral and its implications for pricing decisions.

A: Downward Demand Spiral: A downward demand spiral is a continuing reduction in the demand for a…

Q: behavioral view” of market efficiency

A: The Efficient Market Hypothesis is usually predicated on the belief that traders and investors…

Q: Distinguish between market-skimming pricing and market-penetration pricing.

A: Product pricing strategies: There are two product pricing strategies of a company. They are,…

Q: What are the benefits of Profitability Analysis?

A: Profitability analysis is a tool used by the firm to analyze cost and revenue to know whether the…

Q: Describe two alternative approaches to long-run pricing decisions.

A:

Q: iven the information below, calculate the reward-to-risk ratio implied by the CAPM pricing model.

A: The risk-reward ratio determines how much reward is there for risk of  every dollar.

Q: Explain profitability index

A: Profitability index is a financial tool which tells us whether an investment should be accepted or…

Q: give empirical evidence about market efficiency stong form

A: Introduction : In simple words, strong form market efficiency hypothesis states that securities in…

Q: Explain how a yield curve is constructed.

A: Yield curve is referred to as the line, which used to plot yields that are interest rates of the…

Q: Explain sales cutoff tests.

A: Auditing:   Auditing refers to an independent examination of financial information of any…

Q: Define the term Profit margins?

A: Financial Ratios: Financial ratios are the metrics used to evaluate the liquidity, capabilities,…

Q: Csn you incorporate Transactional pricing in the same agreement as formula pricing and why or why…

A: Answer Concept  Transactional pricing is  the pricing model in which customers are charged on the…

Q: Enumerate and explain briefly the limitations of using CVP analysis in pricing decisions.

A: Cost Volume Profit (CVP) analysis is a way to find out how changes in variable and fixed costs…

Q: a. Plot a yield curve based on these data. b. What type of yield curve is shown? c. What information…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: Perform a profitability analysis

A: Profit is very important element of the business. Every business wants to have maximum profit in its…

Q: What is Transfer Pricing? What are the approaches in determining transfer prices? In your own…

A: Explanation of transfer pricing and approaches determining transfer pricing are as follows.

Q: What is the relationship between NPV and profitability index (PI)?

A: The concept of net present value is used to decide whether to invest in an investment or not. It is…

Q: return

A: The term profitability refers to metric which is used to measure profits. An analysis is made on how…

Q: Which of the following is most accurate about fundamental and technical analysis? Fundamental…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: Build an influence diagram that illustrates how to calculate profit.

A: Profit : Every business motive is to earn profit.  Profit is generally earned when the business…

Q: Give some examples of market value analysis?

A: Market value is a strong shareholder richness measuring stick. And besides, what depends is what the…

Q: Distinguish between a profit center and an investment center. Draw a diagram illustrating the…

A:

Q: Define Return on sales

A: Ratio analysis: It refers to the quantitative technique of financial analysis that allows gaining an…

Q: Explain the behavioral problem that can result when cost-plus prices are based on variable cost.

A: Following is the answer to the given question