Homework Answers
Answer: (a) their purchases represent a significant portion of the sellers' sales.
Explanation: In a buyer-seller exchange relationship, both buyer and seller possesses a certain degree of power. The party with higher degree of power can mould the agreement conditions of the exchange relationship in its favour to benefit itself. When a major component of a sellers’ products is purchased by a single buyer, the buyer will have higher degree of power. For example, if a seller produces 1000 units of ketchup sachets in a month of which 800 units are purchased by one single hamburger company (buyer), in this scenario, the buyer power would be high to negotiate terms and conditions, pricing etc. in its own favour.
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Buyer power is high when: their purchases represent a significant portion of the sellers' sales. the...
When it comes to Porter Analysis, of fast food industry,(McDonald's for ex)would bargaining power be high...
When it comes to Porter Analysis, of fast food industry,(McDonald's for ex)would bargaining power be high for end consumers because of low switching costs or many substitute choices. OR would it be low because they can't really bargain with the fast food prices to lower anything, after all the individual customer is not the main source of income for these fast food chains because they depend on millions of customers? I getting told different things, what is it to have...
Stock and Sales Planning by Classification Sometimes when planning assortments, the buyer will focus on the...
Stock and Sales Planning by Classification Sometimes when planning assortments, the buyer will focus on the sales generated instead of the stock. In the following problems, use the same steps you just went through, but this time keep in mind the buyer is looking at sales and how many pieces he or she should buy instead of how the stock should be developed. 4. The woman's lingerie buyer is planning the fall season. Based on historical data, the buyer calculates...
Exercise 4-16A Recording sales, purchases, and discounts: buyer and seller- periodic LO P5 Santa Fe Retailing...
Exercise 4-16A Recording sales, purchases, and discounts: buyer and seller- periodic LO P5 Santa Fe Retailing purchased merchandise “as is” (with no returns) from Mesa Wholesalers with credit terms of 2/10, n/60 and an invoice price of $27,700. The merchandise had cost Mesa $18,891. Assume that both buyer and seller use a periodic inventory system and the gross method. 1. Prepare entries that the buyer should record for (a) the purchase, (b) cash payment within the discount period, and (c)...
I need some clarification, especially on part A, If the buyer took advantage of this special...
I need some clarification, especially on part A,
If the buyer took advantage of this special purchase what would
the markup for the entire purchase be based on the regular retail
price? (Note: You need to calculate the total cost and total retail
for both purchases in order to solve for the markup)
Does both purchases mean the original order and the special
order?
CASE STUDY PRICING IN MERCHANDISING In mid-October, a key vendor offers a missy top department store...
Exercise 4-17A Recording sales, purchases, and discounts: buyer and seller- periodic LO P5 Santa Fe Retailing...
Exercise 4-17A Recording sales, purchases, and discounts: buyer and seller- periodic LO P5 Santa Fe Retailing purchased merchandise “as is” (with no returns) from Mesa Wholesalers with credit terms of 3/10, n/60 and an invoice price of $22,700. The merchandise had cost Mesa $15,481. Assume that both buyer and seller use a perpetual inventory system and the gross method. 1. Prepare entries that the buyer should record for (a) the purchase, (b) cash payment within the discount period, and (c)...
4 Exercise 4-6 Recording sales, purchases, and cash discounts-buyer and seller LO P1, P2 Santa Fe...
4 Exercise 4-6 Recording sales, purchases, and cash discounts-buyer and seller LO P1, P2 Santa Fe Retailing purchased merchandise "as is" (with no returns) from Mesa Wholesalers with credit terms of 3/10, n/60 and an invoice price of $24,300. The merchandise had cost Mesa $16,573. Assume that both buyer and seller use a perpetual inventory system and the gross method. ints 1. Prepare entries that the buyer records for the (a) purchase, (b) cash payment within the discount period, and...
4 Exercise 4-6 Recording sales, purchases, and cash discounts-buyer and seller LO P1, P2 Santa Fe...
4 Exercise 4-6 Recording sales, purchases, and cash discounts-buyer and seller LO P1, P2 Santa Fe Retailing purchased merchandise "as is" (with no returns) from Mesa Wholesalers with credit terms of 3/10, n/60 and an invoice price of $24,300. The merchandise had cost Mesa $16,573. Assume that both buyer and seller use a perpetual inventory system and the gross method. ints 1. Prepare entries that the buyer records for the (a) purchase, (b) cash payment within the discount period, and...
Check my work 4 Exercise 4-6 Recording sales, purchases, and cash discounts-buyer and seller LO P1,...
Check my work 4 Exercise 4-6 Recording sales, purchases, and cash discounts-buyer and seller LO P1, P2 Santa Fe Retailing purchased merchandise "as is" (with no returns) from Mesa Wholesalers with credit terms of 3/10, n/60 and an invoice price of $24,300. The merchandise had cost Mesa $16,573. Assume that both buyer and seller use a perpetual inventory system and the gross method. ints 1. Prepare entries that the buyer records for the (a) purchase, (b) cash payment within the...
Revenues are normally recognized when the entity has transferred to the buyer the significant risks and...
Revenues are normally recognized when the entity has
transferred to the buyer the significant risks and rewards of
ownership of the goods, it retains neither continuing managerial
involvement to the degree usually associated with ownership nor
effective control over the goods, it is probable that future
economic benefits will flow to the company, and the benefits from
afnd costs associated with the transaction can be measured
reliably. The amount recorded is the cash-equivalent sales price.
Assume that the following events...
Firms that buy inputs from suppliers have more bargaining power when: A. the costs of switching...
Firms that buy inputs from suppliers have more bargaining power when: A. the costs of switching suppliers are low B. the suppliers sell highly differentiated products C. there are many other buyers in the market D. they purchase a relatively small quantity of product If a firm successfully differentiates its product from other products in the market, then we should expect the elasticity of demand for the differentiated product to become: A. retain the same elasticity of demand B. more...
Stock and Sales Planning by Classification Sometimes when planning assortments, the buyer will focus on the sales generated instead of the stock. In the following problems, use the same steps you just went through, but this time keep in mind the buyer is looking at sales and how many pieces he or she should buy instead of how the stock should be developed. 4. The woman's lingerie buyer is planning the fall season. Based on historical data, the buyer calculates...
I need some clarification, especially on part A,
If the buyer took advantage of this special purchase what would
the markup for the entire purchase be based on the regular retail
price? (Note: You need to calculate the total cost and total retail
for both purchases in order to solve for the markup)
Does both purchases mean the original order and the special
order?
CASE STUDY PRICING IN MERCHANDISING In mid-October, a key vendor offers a missy top department store...
4 Exercise 4-6 Recording sales, purchases, and cash discounts-buyer and seller LO P1, P2 Santa Fe Retailing purchased merchandise "as is" (with no returns) from Mesa Wholesalers with credit terms of 3/10, n/60 and an invoice price of $24,300. The merchandise had cost Mesa $16,573. Assume that both buyer and seller use a perpetual inventory system and the gross method. ints 1. Prepare entries that the buyer records for the (a) purchase, (b) cash payment within the discount period, and...
4 Exercise 4-6 Recording sales, purchases, and cash discounts-buyer and seller LO P1, P2 Santa Fe Retailing purchased merchandise "as is" (with no returns) from Mesa Wholesalers with credit terms of 3/10, n/60 and an invoice price of $24,300. The merchandise had cost Mesa $16,573. Assume that both buyer and seller use a perpetual inventory system and the gross method. ints 1. Prepare entries that the buyer records for the (a) purchase, (b) cash payment within the discount period, and...
Check my work 4 Exercise 4-6 Recording sales, purchases, and cash discounts-buyer and seller LO P1, P2 Santa Fe Retailing purchased merchandise "as is" (with no returns) from Mesa Wholesalers with credit terms of 3/10, n/60 and an invoice price of $24,300. The merchandise had cost Mesa $16,573. Assume that both buyer and seller use a perpetual inventory system and the gross method. ints 1. Prepare entries that the buyer records for the (a) purchase, (b) cash payment within the...
Revenues are normally recognized when the entity has
transferred to the buyer the significant risks and rewards of
ownership of the goods, it retains neither continuing managerial
involvement to the degree usually associated with ownership nor
effective control over the goods, it is probable that future
economic benefits will flow to the company, and the benefits from
afnd costs associated with the transaction can be measured
reliably. The amount recorded is the cash-equivalent sales price.
Assume that the following events...
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