answersLogoWhite

0

The higher electricity prices become results in the higher the company's overhead operating costs become. This in turn takes away from the profit margin. To maintain the company's profit margin, higher prices are charged to the consumer. The company just pass the extra cost along and the more a consumer has to pay.

User Avatar

Wiki User

15y ago

What else can I help you with?

Continue Learning about Natural Sciences

What is the most important factor that affects the value of a company?

The most important factor that affects the value of a company is its profitability. Investors assess a company's ability to generate profits and grow over time, which ultimately determines its valuation in the market. Other factors such as industry trends, management effectiveness, and economic conditions also play a role in determining a company's value.


How is target cost determined?

Target cost is determined by subtracting the desired profit margin from the target selling price. By understanding customer needs and competition, a company can set a competitive selling price. This allows the company to then calculate the target cost by subtracting the profit margin from the selling price.


What is an example of disagio?

An example of disagio is when a company issues bonds at a price below their face value, resulting in a discount that represents the difference between the issue price and the face value of the bonds. This discount is recorded as disagio on the company's balance sheet.


Why Would price necessarily be an advantage in a niche company?

Price can be an advantage for a niche company because it can help attract price-sensitive customers who are looking for affordable options within that specific market segment. Offering competitive pricing can also help a niche company differentiate itself from competitors and appeal to a larger customer base within its niche. This can lead to increased sales and customer loyalty.


What is EB and PB?

EB stands for Earnings Before interest, taxes, depreciation, and amortization, a financial metric used to evaluate a company's operating performance. PB typically stands for Price to Book ratio, a valuation metric calculated by dividing the company's stock price by its book value per share, indicating how the market values the company in relation to its net assets.

Related Questions

What is relation between inflation and price rise?

Inflation is the prices rising due to human consumption and the economy and it affects everyone. Price increases are due to the company doing it on an individual basis per item needed.


Why do companies prioritize and care about their stock price?

Companies prioritize and care about their stock price because it reflects the value of the company in the eyes of investors. A high stock price can attract more investors, increase access to capital, and boost the company's overall financial health. It also affects the company's ability to make acquisitions, attract top talent, and maintain a positive reputation in the market.


How do you get to sunny shore on Pokemon platinum?

you have to first get the badge from pastoria and defeat the bad guys at each of the lakes then the man saying that the electricitys


If a company raises its price for holidays over the equilibrium price the demand will?

if a company raises its price for holidays over the equilibrium price, the demand will


Does a reduction in share price decrease company profit?

No, a reduction in a company's share price has no effect on the company's profits.


How does the stock price analysis affect me?

The stock price affects everyone in the United States. It decides how much money you can essentially make in a year. This means it affects what food, clothing, and housing you can have.


Who are the founders of fisher price?

The company Fisher Price was founded in 1930. The original founders of this long standing company are Herman Fisher, Irving Price, Margaret Evans Price and Helen Schelle. The parent company of Fisher Price is Mattel.


What affects the price of stock?

Basically the stock marketis like any other market in the economy. Prices are regulated by demand and supply. Now there are various factors which affect demand and supply which will affect the price. Those factor can be news for example. A good CEO has left the company, or the company has committed fraud. Those things make people loose trust in the company and they will sell the stock which means the price goes down. Still over history it can be calculated which trend the current stock price is going. blog.vantagetrade.com is giving greater insight in how that works.


What is the company Price Runner known for?

Price Runner is a Swedish company that was originally started in 1999. It was started as a price comparision website to help shoppers get the best price on products.


What does 'jobber price' mean?

Jobber price is what one company would sell their goods to another retail company for. That company would then raise the price on that product and sell it for profit. Margins of profit when selling at jobber price is typically very low, think of it as a wholesale price.


What is the current stockoffered price for Company XYZ?

The current stock price for Company XYZ is 50 per share.


How old is fisher price toy company?

Herman Fisher, Irving Price and Helen Schelle created the Fisher-Price Toy Company in 1930.