Cost plus Pricing: It is a cost-based technique used to set up the costs of products and enterprises. Under this approach, the immediate material cost, coordinate work cost, and overhead expenses for an item are included, and add to it a markup rate (to make an overall revenue) keeping in mind the end goal to ascertain the selling of the item. To determine: The pricing policies of the company are violating the anti-trust laws or not.

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Answer 1

Question

Chapter 13, Problem 13.35P

1.

To determine

Cost plus Pricing:

It is a cost-based technique used to set up the costs of products and enterprises. Under this approach, the immediate material cost, coordinate work cost, and overhead expenses for an item are included, and add to it a markup rate (to make an overall revenue) keeping in mind the end goal to ascertain the selling of the item.

To determine: The pricing policies of the company are violating the anti-trust laws or not.

2.

To determine

Reason for not offering lowest rice guarantee on Monday mornings and Friday evenings.

3.

To determine

Factors that are to be considered before the implementation of pricing policies.

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Answer 2

Question

Chapter 13, Problem 13.35P

1.

To determine

Cost plus Pricing:

It is a cost-based technique used to set up the costs of products and enterprises. Under this approach, the immediate material cost, coordinate work cost, and overhead expenses for an item are included, and add to it a markup rate (to make an overall revenue) keeping in mind the end goal to ascertain the selling of the item.

To determine: The pricing policies of the company are violating the anti-trust laws or not.

2.

To determine

Reason for not offering lowest rice guarantee on Monday mornings and Friday evenings.

3.

To determine

Factors that are to be considered before the implementation of pricing policies.

Expert Solution & Answer

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Answer 3

Question

Chapter 13, Problem 13.35P

1.

To determine

Cost plus Pricing:

It is a cost-based technique used to set up the costs of products and enterprises. Under this approach, the immediate material cost, coordinate work cost, and overhead expenses for an item are included, and add to it a markup rate (to make an overall revenue) keeping in mind the end goal to ascertain the selling of the item.

To determine: The pricing policies of the company are violating the anti-trust laws or not.

2.

To determine

Reason for not offering lowest rice guarantee on Monday mornings and Friday evenings.

3.

To determine

Factors that are to be considered before the implementation of pricing policies.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 13, Problem 13.35P

1.

To determine

Cost plus Pricing:

It is a cost-based technique used to set up the costs of products and enterprises. Under this approach, the immediate material cost, coordinate work cost, and overhead expenses for an item are included, and add to it a markup rate (to make an overall revenue) keeping in mind the end goal to ascertain the selling of the item.

To determine: The pricing policies of the company are violating the anti-trust laws or not.

2.

To determine

Reason for not offering lowest rice guarantee on Monday mornings and Friday evenings.

3.

To determine

Factors that are to be considered before the implementation of pricing policies.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 5

Chapter 13, Problem 13.35P

1.

To determine

Cost plus Pricing:

It is a cost-based technique used to set up the costs of products and enterprises. Under this approach, the immediate material cost, coordinate work cost, and overhead expenses for an item are included, and add to it a markup rate (to make an overall revenue) keeping in mind the end goal to ascertain the selling of the item.

To determine: The pricing policies of the company are violating the anti-trust laws or not.

2.

To determine

Reason for not offering lowest rice guarantee on Monday mornings and Friday evenings.

3.

To determine

Factors that are to be considered before the implementation of pricing policies.

Answer 6

Chapter 13, Problem 13.35P

1.

To determine

Cost plus Pricing:

It is a cost-based technique used to set up the costs of products and enterprises. Under this approach, the immediate material cost, coordinate work cost, and overhead expenses for an item are included, and add to it a markup rate (to make an overall revenue) keeping in mind the end goal to ascertain the selling of the item.

To determine: The pricing policies of the company are violating the anti-trust laws or not.

Answer 7

Chapter 13, Problem 13.35P

1.

To determine

Cost plus Pricing:

It is a cost-based technique used to set up the costs of products and enterprises. Under this approach, the immediate material cost, coordinate work cost, and overhead expenses for an item are included, and add to it a markup rate (to make an overall revenue) keeping in mind the end goal to ascertain the selling of the item.

To determine: The pricing policies of the company are violating the anti-trust laws or not.

Answer 8

2.

To determine

Reason for not offering lowest rice guarantee on Monday mornings and Friday evenings.

Answer 9

2.

To determine

Reason for not offering lowest rice guarantee on Monday mornings and Friday evenings.

Answer 10

3.

To determine

Factors that are to be considered before the implementation of pricing policies.

Answer 11

3.

To determine

Factors that are to be considered before the implementation of pricing policies.

Answer 12

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Answer 13

Expert Solution & Answer

Answer 14

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Answer 15

Ch. 13 - What are the three major influences on pricing...Ch. 13 - Relevant costs for pricing decisions are full...Ch. 13 - Describe four purposes of cost allocation.Ch. 13 - How is activity-based costing useful for pricing...Ch. 13 - Describe two alternative approaches to long-run...Ch. 13 - What is a target cost per unit?Ch. 13 - Describe value engineering and its role in target...Ch. 13 - Give two examples of a value-added cost and two...Ch. 13 - It is not important for a company to distinguish...Ch. 13 - Prob. 13.10Q

Solution Summary: The author explains that GA's pricing strategy violates anti-trust laws because it charges low prices in weekends to gain high customer turnout, and raises flight charges on other days of the week to nullify losses.

Concept explainers

Reason for not offering lowest rice guarantee on Monday mornings and Friday evenings.

Factors that are to be considered before the implementation of pricing policies.

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Chapter 13 Solutions