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A state law in California makes it illegal for businesses to charge men and women different prices for dry cleaning, laundry, tailoring, or hair grooming. The state legislator who introduced the law did so after a dry cleaner charged her more to have her shirts dry cleaned than to have her husband's shirts dry cleaned. According to a newspaper article, the owner of the dry cleaner told the legislator that his costs for cleaning women's shirts were higher because he had to iron them by hand rather than use an automatic press. The law proved difficult to enforce, with many dry cleaners continuing to ignore it years after it was passed.
a. Was the dry cleaner practicing price discrimination, as defined in this chapter? Briefly explain.
b. Do you support laws like this one? Briefly explain.
A project will require an initial investment of $750,000 and will return $200,000 each year for five years. If taxes are ignored and the required rate of return is 9%, what is the project's net present value? Based on this analysis, should the com..
Kijijo Auctions runs an online auction company. Its end- of- year financial statements indicate the following results. Calculate the company's net profit margin expressed as a percent (to one decimal place) and indicate whether it represents an impro..
a company issues 1 million of new stock and pays 200000 in cash dividends during the year. in addition the company took
discuss the compensation packages for accounting professionals. is the compensation commensurate with the
comparative balance sheetdecember 31nbspnbspnbsp assetsnbspnbsp 2009nbspnbsp 2008cash 35000 40000short-term
1.If the adjusting journal entries prepared in BE 25 were not made, would net income be higher or lower and by how much?
The purchase price of each mug to the company is 90 cents; in addition it costs 60 cents to mail each mug. The results of the premium plan for the years 2006 and 2007 are as follows (assume all purchases and sales are for cash)
bonita beauty corporation manufactures cosmetic products that are sold through a network of sales agents. the agents
Prepare a schedule of expected collections from customers for March and prepare a schedule of expected payments for direct materials for March.
Suppose this action will increase sales to 375,000 jars - should Santiago's lower the price of salsa based on incremental analysis?
The accounts of Custom Pool Service, Inc., follow with their normal balances at June 30, 20X6. The accounts are listed in no particular order. Prepare the financial statement for the month ended June 30, 20X6, that will tell the company the results o..
Fogelberg Company purchased equipment for $12,000. Sales tax on the purchase was $600. Other costs incurred were freight charges of $240, repairs of $420 for damage during installation, and installation costs of $270. What is the cost of the equip..
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