Question

In: Accounting

Waving Through the Window You and your two roommates are starting a window washing service to...

Waving Through the Window

You and your two roommates are starting a window washing service to help put yourself through college. There are two other well-established window washing services in your area.

  • Should you set your price higher or lower than that of the competition? Justify your answer.

One roommate believes the most important objective in setting prices for the business is to generate a large profit, while keeping an eye on your competitors’ prices; the other roommate believes it is important to maximize sales and set prices according to what your customers expect to pay.

  • Who is right and why?
  • How do the number of competitors in the market in this situation affect YOUR pricing strategy?

Solutions

Expert Solution

ekkarill92 answered 7 months ago
Next > < Previous

Related Solutions

Waving Through the Window You and your two roommates are starting a window washing service to...
Waving Through the Window You and your two roommates are starting a window washing service to help put yourself through college. There are two other well-established window washing services in your area. Should you set your price higher or lower than that of the competition? Justify your answer. One roommate believes the most important objective in setting prices for the business is to generate a large profit, while keeping an eye on your competitors’ prices; the other roommate believes it...
Imagine you and your partners are starting up a delivery service that satisfy the need and...
Imagine you and your partners are starting up a delivery service that satisfy the need and wants of the society during the Covid-19 epidemic. Design for the delivery service based on the following requirements: 1. Introduction a) Nature of the business b) Business background and profile 2. Type of business entity you chose - partnership or company 3. Reasons for choosing partnership or company a) the advantages and benefits b) Provide a court case that could support your reason 4....
New Dawn Window Washing Inc. was started on May 1. Here is a summary of the...
New Dawn Window Washing Inc. was started on May 1. Here is a summary of the May transactions. 1. Stockholders invested $20,000 cash in the company in exchange for common stock. 2. Purchased equipment for $9,000 cash. 3. Paid $700 cash for May office rent. 4. Paid $300 cash for supplies. 5. Purchased $750 of advertising in the Beacon News on account. 6. Received $7,200 in cash from customers for service. 7. Paid a $500 cash dividend. 8. Paid part-time...
You and your roommates have decided to go to a fraternity party on Saturday night. You...
You and your roommates have decided to go to a fraternity party on Saturday night. You arrive at the fraternity house and see another classmate, Jenn, from your psychology class. You go over to say hello and see what she thought of the first exam, but Jenn seems to be acting very strangely. She starts describing fantastic colors made by the lights and how the dance floor is a beautiful sea of diamonds. You take a look around and realize...
Have you ever thought of starting your own small business? Think of a good or service...
Have you ever thought of starting your own small business? Think of a good or service you might like to provide to your community. Then, describe how you would supply the good or service. How would you go about estimating demand for your good or service? Evaluate whether there would be enough demand for there to be a “market” for your good or service.
A ball is thrown upward from the ground. You observe the ball through a window on...
A ball is thrown upward from the ground. You observe the ball through a window on its way up, and notice it was visible for 2 seconds while it travels from the bottom of the window to the top, which is a length of 43.42 metres. a) How much time does it take for the ball to be seen again (in seconds)? b) How far above top of window will the ball reach (in metres)?
How much must you deposit each year into your retirement account starting now and continuing through...
How much must you deposit each year into your retirement account starting now and continuing through year 15 if you want to be able to withdraw $80,000 per year forever, beginning 27 years from now? Assume the account earns interest at 8% per year. The amount to be deposited is determined to be $________?
explain the pathway of blood as it travels through your body starting at the left ventricle
explain the pathway of blood as it travels through your body starting at the left ventricle
Mike Greenberg opened Novak Window Washing Inc. on July 1, 2017. During July, the following transactions...
Mike Greenberg opened Novak Window Washing Inc. on July 1, 2017. During July, the following transactions were completed. 1-Jul Issued 11,300 shares of common stock for $11,300 cash. 1 Purchased used truck for $7,520, paying $1,880 cash and the balance on account. 3 Purchased cleaning supplies for $850 on account. 5 Paid $1,680 cash on a 1-year insurance policy effective July 1. 12 Billed customers $3,480 for cleaning services performed. 18 Paid $940 cash on amount owed on truck and...
Patrick opened Patrick’s Window Washing on July 1, 2019. During July the following transactions were completed:...
Patrick opened Patrick’s Window Washing on July 1, 2019. During July the following transactions were completed: July 1 Patrick invested $20,000 cash in exchange for stock of the business. 1 Purchased used truck for $6,000, paying $3,000 cash and the balance on account. 3 Purchased cleaning supplies for $1,300 on account. 5 Paid $1,200 cash on one-year insurance policy effective July 1. 6 Purchased 20 bottles of window washing detergent from Coal Company for Patrick’s inventory for $10/bottle, 2/10 n30....
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT