Johnson builders builds 1,500-square-foot startertract homes in the fast-growing suburbs of atlanta. land and labor arecheap, and competition among developers is fierce, the homes are a standard model, with any upgrades added by thebuyer afterthe sale, johnson builders’s costs per developed sublot are as follows: land 5 50.000construction 123,000landscaping 9,000variable selling costs 8,000johnson builders would like to earn a profit of 14% of the variable cost of each home sold. similar homes offered bycompeting builders sell for $207,000 each. assume the company has no fixed costs. requirements1. which approach to pricing should johnson builders emphasize? why? 2 will johnson builders be able to achieve its target profit levels? 3. bathrooms and kitchens are typically the most important selling features of a home. johnson builders could differentiatethe homes by upgrading the bathrooms and kitchens. the upgrades would cost $16,000 per home but would enablejohnson builders to increase the sales prices by $28,000 per home. (kitchen and bathroom upgrades typically add about175% of their cost to the value of any home.) if johnson builders makes the upgrades, what will the new cost-plus price perhome be? should the company differentiate its product in this manner?

Mr. smith recently faced a choice between being (a) an economics profes-sor, which pays $60,000/yr, or (b) a safari leader, which pays $50,000/yr. after careful deliberation, smith took the safari job, but it was a close call. "for a dollar more," he said, "i'd have gone the other way."now smith's brother-in-law approaches him with a business proposition. the terms are as follows: - smith must resign his safari job to work full-time in his brother-in-law's business.- smith must give his brother-in-law an interest-free loan of $100,000, which will be repaid in full if and when smith leaves the business. (smith currently has much more than $100,000 in the the business will pay smith a salary of $70,000/yr. he will receive no other payment from the business.the interest rate is 10 percent per year. apart from salary considerations, smith feels that working in the business would be just as enjoyable as being an economics professor. for simplicity, assume there is no uncertainty regarding either smith's salary in the proposed business or the security of his monetary investment in it. should smith join his brother-in-law and, if so, how small would smith's salary from the business have to be to make it not worthwhile for him to join? if not, how large would smith's salary from the business have to be to make it worthwhile for him to join?

Assume the perpetual inventory method is used. 1) the company purchased $12,500 of merchandise on account under terms 2/10, n/30. 2) the company returned $1,200 of merchandise to the supplier before payment was made. 3) the liability was paid within the discount period. 4) all of the merchandise purchased was sold for $18,800 cash. what effect will the return of merchandise to the supplier have on the accounting equation?

Which of the following is an example of a monetary policy? a. the government requires credit card companies to protect customers' privacy. b. the government restricts the amount of money that banks can lend. c. the government lowers taxes and increases spending. d. the government pays for repairing damage from a natural disaster.