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3 years ago

Arriving at a cost structure that is both profitable and hard for potential followers to match is called

1 answer:

5 0

Arriving at a cost structure that is both profitable and hard for potential followers to match is called a <u>Price Minus</u>.

<h3>What is a Price Minus?</h3>

A Price Minus is a pricing strategy that deducts some amount from the market price to attract more customers and increase profitability to the detriment of competitors.

A price minus can be used as a market penetration strategy.

Thus, using a price minus, a company can arrive at a cost structure that achieves profitability and deters potential competitors without instigating a price war.

Learn more about pricing strategies at brainly.com/question/27124956

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Sara’s Salsa Company produces its condiments in two types: Extra Fine for restaurant customers and Family Style for home use. Sa

Len [333]

Answer:

1.$4.29 per cases

2. Extra Fine $14.29

Family Style $13.29

3a. Extra Fine $4.71

Family Style $0.29

3b. What might the management conclude about the Family Style Salsa product line is that Family Style salsa are not yielding profit which may may inturn make make the company to stop the production of the product in a situation where either the cost are not reduced or where the price.

Explanation:

1. Computation for the overhead cost that is assigned to each case of Extra Fine Salsa and each case of Family Style Salsa using Plantwide overhead rate

Using this formula

Overhead cost=Total overhead cost/Total volume

Let plug in the formula

First step is to calculate the Total overhead cost

Total overhead cost = $130,800 + $349,000 +$206,000

Total overhead cost =$685,800

Second step is to calculate the Total volume

Total volume= 35,000 + 125,000 cases

Total volume=160,000 cases

Now let calculate the Overhead cost

Overhead cost=$685,800/160,000 cases

Overhead cost=$4.29 per cases (rounded)

Therefore since we are making use of plantwide rate which means that same overhead cost of the amount of $4.29 per cases will be assigned to each of the two case .

2. Calculation to determine the total cost per case for the two products

Extra Fine Family Style

Direct materials + Direct Labor $ 10.00 $ 9.00

Add Overhead $4.29 $4.29

Manufacturing cost per case $ 14.29 $ 13.39

Therefore the the total cost per case for the two products will be:

Extra Fine $14.29

Family Style $13.29

3-A Calculation to determine the gross profit per case for each product.

Extra Fine Family Style

Selling price per case $ 19.00 $ 13.00

Less Manufacturing cost per case $14.29 $13.29

Gross profit (loss) per case $ 4.71. $ (0.29 )

Therefore the gross profit per case for each product will be ;

Extra Fine $4.71

Family Style $0.29

3-b. Based on the above Calculation What might the management conclude about the Family Style Salsa product line is that Family Style salsa are not yielding profit which may may inturn make make the company to stop the production of the product in a situation where either the cost are not reduced or where the price.

3 0

3 years ago

The most recent financial statements for Xporter, Inc., are shown here:

Diano4ka-milaya [45]

Solution :

Expected sales = current sales x (1 + projected sale next year increase)

= 5,700 x (1 + 15%)

= $ 6555

Expected cost = current cost x (1 + projected sale next year increase)

= 4200 x (1 + 15%)

= $ 4830

Taxable income = 1500 x ( 1 + 15%)

= $ 1725

Taxes (34%) = 510 x (1+15%)

= $ 586.5

Net income = sales - cost - taxes

= 6555 - 4830 - 586.5

= $ 1138.5

Calculation of total asset :

Current asset = 3,900 x 1.15

= $ 4485

Fixed asset = 8100 x 1.15

= $ 9315

Total asset = 4485 + 9315

= $ 13800

Calculation of total liabilities

Current liabilities = 2200 x 1.15

= $ 2530

Long term debt = $ 3,750

Equity = $ 6050 + (1138.5 x 0.50 )

= $ 7189

Total liabilities = $ 2530 + $ 3,750 + $ 7189

= $ 13, 469

Therefore the external financial needed is = $ 13800 - $ 13, 469

= $ 331

8 0

3 years ago

Fruitlicious is a fruit juice manufacturing company. The company ensures that all the raw materials are used well and minimal wa

Semmy [17]

It can be said that Fruitlicious demonstrates Efficiency

<h3><u>Explanation:</u></h3>

Efficiency correlates to the quality of your profession, which might involve building manufacturing with more limited waste, utilizing fewer resources or consuming smaller money. Improved efficiency can impede productivity and vice versa. Obtaining the correct sequence of productivity and efficiency assists you optimize your yield while reducing losses.

Added means to look at efficiency is the amount of gained hours of great quality productive product sorted by the number of work hours possible in a day. Essentially to expand manufacturing efficiency you want to create added output in the equivalent amount of time

5 0

3 years ago

TuckIn, a restaurant chain, has hired a market research company to help it better understand its customers and their preferences

ludmilkaskok [199]

Answer:

B. The results are objective.

Explanation:

Thei return with the information that customer demand for quality in their dinner weren't met.

When the customer order something it is a plate it likes therefore, it should not return the order. If it does then, the restaurant is not doing a good job in the quality department.

It should check now for either decrease in their quality or adapt into the customers preference change

5 0

3 years ago

Read 2 more answers

state four measures that may be taken by the government to control inflationstate formations that taken by the government to con

Margarita [4]

Answer:

see below

Explanation:

The government takes contractionary measures to check against rising inflation. Contractionary policies reduce liquidity in the market, thereby reducing the rate of money circulation.

<u> Four measures that may control inflation include</u>

1<u>. Increasing interest rates</u>: An increase in interest rates increases the cost of borrowing money. When the cost of money becomes expensive, firms and households reduce the borrowing rate, reducing the money supply rate. In turn, the inflation rate declines.

2. <u>Increasing reserve requirement:</u> Reserve is the proposition of customer discounts that commercial banks are expected to maintain at their custody at all times. Increasing the reserve requirement means banks will reduce lending, thereby reducing the money supply in the economy.

3. <u>The open market sells</u>: The government makes available many treasury bills and bonds for purchase in the market. It offers attractive rates that encourage banks and other institutions to buy them. Buying the treasury bills means banks will use a substantial percentage of customer deposits on treasury bills other than lending to customers. Open market sales mop up excess liquidity in the markets, reducing the rate of cash circulation.

4. <u>Reduction of government spending:</u> Government spending is a fiscal policy tool. The government is a big spender in an economy. If the level of spending is decreased, the money supply in the economy is reduced.

5 0

3 years ago