Sensenig Propeller manufactures replica antique wooden airplane propellers. In the process of production, the company generates a great deal of scrap hardwood. How can using by-product pricing benefit the company?
What will be an ideal response?
Using by-product pricing, Sensenig can seek a market for the hardwood and should accept any price that covers more than the cost of storing and delivering the by-products. This practice allows Sensenig to reduce the main product's price to make it more competitive. Sensenig might even find that the by-products themselves are profitable.
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Which statement is true?
A. From a legal perspective, preferred stock is a form of corporate equity. B. All classes of stock must have equal voting rights per share. C. Common shareholders elect the corporate directors while the preferred shareholders vote on mergers and acquisitions. D. Preferred dividends provide tax-free income to individual investors. E. Preferred shareholders prefer noncumulative dividends over cumulative dividends.
Which of the following is not a necessary element in the formation of a contract:
A: Offer; B: Acceptance; C: Consideration; D: Performance.