You are hired as a product manager at a camping product company that has developed a new lightweight, collapsible drinking cup for backpackers. you are considering two alternative prices for the product - $7.50 or $4.50. research has estimated that at the $7.50 price the first year market will be 200,000 units, plus or minus 20%. at the $4.50 price the first year market is estimated at 600,000 units, plus or minus 30%. in either case, manufacturing costs (variable costs) will be $2.80 per unit and fixed costs for plant and equipment will be $50 thousand. since the product will simply be added to the company’s line, other expenses, such as advertising costs, will be minimal. you estimate $15 thousand at either volume level.
you are trying to decide whether to use a price skimming or penetration strategy. because you have heard that a major competitor is working on a similar unit, you are afraid that you will have very little lead time – a month or two at the most. you have filed for a patent on the product but are not sure that it is patentable. at the same time, you have to introduce the product immediately to be in the market in time for the backpacking season.
question: 1.what are your projected sales and profits at the skimming and penetration prices? 2.what are your breakeven points for the skimming and penetration prices? 3.what decision do you make, skimming or penetration? why? 4.what are your assumptions and considerations that led you to this decision? 5.what additional information would you like to know to make a more informed decision?

Suppose that in an economy the structural unemployment rate is 2.2 percent, the natural unemployment rate is 5.3 percent, and the cyclical unemployment rate is 2 percent. the frictional unemployment rate is percent and the actual unemployment rate (in this economy) is percent.

Alocal barnes and noble bookstore ordered 80 marketing books but received 60 books. what percent of the order was missing?

Fred smithers, a recent college graduate decided to open his own portable juice bar, smithers smoothies, to wheel around newport beach. you, a trusted friend of fred, are a business major that has also recently graduated and agreed to handle the books for a while to get some practical experience and have a favor that you can ask of fred in the future. given the following five transactions concerning the new venture, prepare the necessary journal entries for the transactions, post the journal entries to appropriate t accounts and prepare a trial balance as of the end of the month in order to answer to the necessary may 2: fred invests $12,000 of his own money to start the new company. this money was obtained from a part-time job working at a legal firm while he was in school. may 3: fred spent $5,100 cash to purchase a refrigerated trailer that he can pull behind his car and set up at the beach. under your advice, fred agrees to place the new asset under an account called "equipment." may 6: fred bought $640 of supplies on account from the flav-o-rite confectioners company. because they will last longer than a single accounting period fred agrees to record them as, "supplies" as per your suggestion. may 13: fred sat on the beach for six hours without a single sale and was feeling very down. right before he left, however, a plumber escorting his family reunion along the beach stopped by his stand and bought $800 worth of smoothies for the entire family. under your advice, fred agrees to call this cash revenue, "sales." may 15: excited about his new venture, fred withdraws $350 from the company to take his girlfriend out to dinner. what would be the balance in the cash account at the end of the period following the posting of all the transactions?