Which of the Following Best Explains Why Delicia Co

question 62

Multiple Choice

Which of the following best explains why Delicia Co. ,a manufacturer of potato chips,prices each bag of potato chips at 99 cents rather than $1.00?

• A)To encourage consumers to think the chips are less expensive
• B)To attract those consumers who are not too sure about the quality of the chips
• C)To create a signal that these chips are exceptionally fine
• D)To increase sales by offering the chips at a discounted price

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Definitions:

Operating Cycle

The duration of time it takes for a company to buy inventory, sell it, and convert it back into cash.

Current Liabilities

Obligations or debts that a company must pay within a year.

Operating Cycle

The operating cycle is the duration of time it takes for a company to purchase inventory, sell it, and convert the sales into cash.

Cash

A form of liquid asset that represents immediate purchasing power and can be used for transactions.