Problem on-pricing by auto dealer

Assignment Help Accounting Basics
Reference no: EM131816586

Question: Pricing by Auto Dealer Many automobile dealers have an operating pattern similar to that of Austin Motors, a dealer in Texas. Each month, Austin initially aims at a unit volume quota that approximates a break-even point. Until the break-even point is reached, Austin has a policy of relatively lofty pricing, whereby the "minimum deal" must contain a sufficiently high markup to ensure a contribution to profit of no less than $400. After the break-even point is attained, Austin tends to quote lower prices for the remainder of the month. What is your opinion of this policy? As a prospective customer, how would you react to this policy?

Reference no: EM131816586

Questions Cloud

Newspaper article or internet report : Find (and hand in) a newspaper article or Internet report about a study that involves just a single categorical variable. Besides providing a copy.
What is value of the interest tax shield from the new debt : what is the value of the interest tax shield from the new debt and what is the value of the interest tax shield from the new debt
United nations and the world health organization : The United Nations and the World Health Organization expressed alarm regarding the extent to which AIDS has reduced life expectancy in Southern Africa
Prepare statement of cash flows for the year ended september : From the income statement and balance sheet of Closely Held Corporation prepare a statement of cash flows for the year ended September 30, 2005
Problem on-pricing by auto dealer : Pricing by Auto Dealer Many automobile dealers have an operating pattern similar to that of Austin Motors, a dealer in Texas.
In an e-mail interview in december 2004 : In an e-mail interview in December 2004, a New York Times reporter asked the renowned physicist Stephen Hawking
Does the company share culpability with chris : Do you think it was illegal, unethical, or neither for Chris to take the database home and query the data? Does the company share culpability with Chris?
Calculate the break-even point and total revenue : Calculate the break-even point and determined that this is your manufacturing limits based on your fixed monthly expenses
Newspaper article on salaries of college : a. Find the salary of a college president whose z-score for that area was approximately +2.

Reviews

Write a Review

Accounting Basics Questions & Answers

  What dollar amount of supplies will be included

The January 1 inventory of supplies in an Internal Service Fund is $9,000. The fund purchases $23,000 of supplies during the year. The December 31 inventory of supplies is $6,000. If the pricing objective of the fund is to be achieved, what dollar..

  In your audit of garza company you find that a physical

in your audit of garza company you find that a physical inventory on december 31 2010 showed merchandise with a cost of

  Generate returns of cash from the asset

An impairment occurs and is recognized when the owner of the asset no longer expects to be able to generate returns of cash from the asset sufficient to recapture its recorded net book value.

  Products sold were snow blowers and lawn mowers

Products sold were snow blowers and lawn mowers. Each product sold for $700. Purchases during 2013 were as follows:

  Net realizable value at split-off approach

Assuming that total joint costs are allocated using the net realizable value at split-off approach, what amount of the joint costs was allocated to product XX-1?

  On sept 25 2010 a hurricane destroyed the work in process

on sept. 25 2010 a hurricane destroyed the work in process inventory of biloxi corporation. at the time the company was

  Kanza inc obtained significant influence over rogan

kanza inc. obtained significant influence over rogan corporation by buying 30 of rogans 26300 outstanding shares of

  Case-cubbies cable

Ernie Binks is a big baseball fan, so it is quite natural for him, at a time like this, to recall a phrase attributed to "Yogi Berra":  It was déjà vu all over again.

  Compute the total amount to be paid by bradley

Compute the total amount to be paid by Bradley over the 16-year life of the mortgage

  In the past the abc company allocated indirect

in the past the abc company allocated indirect manufacturing costs based on direct labour hours. recently management

  Capital budgeting analysis

A project in South Korea requires an initial investment of 2 billion South Korean won. The project is expected to generate net cash flows to the subsidiary of 3 billion and 4 billion won in the two years of operation, respectively.

  Why is the focus on cash flow important

Why is the focus on cash flow important? Why not just look at a company's 'net income' amount? What is the agency problem

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd