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Nastasia [14]
2 years ago
10

Assume starbucks increased its spending on advertising by 35 percent to increase sales in its current markets. Which growth stra

tegy does this​ represent?.
Business
1 answer:
poizon [28]2 years ago
5 0

We can see here that if we assume that Starbucks increased its spending on advertising by 35 percent to increase sales in its current markets. The growth strategy this​ represents is: (d) Market penetration.

<h3>What is market penetration?</h3>

Market penetration actually refers to the success recorded by an organization or company in the selling of their goods and services to a specific market. Sales volume of the existing goods or services is actually used to measure market penetration.

The options that complete the question are:

(a) Market development

(b) Divesting

(c) Diversification

(d) Market penetration

(e) Product development

Thus, if Starbucks was able to increase its spending on advertising by 35 percent in order to increase sales in its current markets, then they had market penetration.

Learn more about market penetration on brainly.com/question/1172265

#SPJ1

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1-a. Prepare a contribution format income statement for the game last year. 1-b. Compute the degree of operating leverage. 2. Ma
marishachu [46]

Answer:

1-a. Total Contribution margin is $210,000 and Net operating income is $28,000.

1-b. Degree of Operating Leverage = 7.50

2-a. The expected percentage increase in net operating income for next year is 150%.

2-b. Expected amount of Net Operating Income is $70,000.

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question as follows:

Magic Realm, Inc., has developed a new fantasy board game. The company sold 15,000 games last year at a selling price of $20 per game. Fixed costs associated with the game total $182,000 per year, and variable costs are $6 per game. Production of the game is entrusted to a printing contractor. Variable costs consist mostly of payments to this contractor.

Required:

1-a. Prepare a contribution format income statement for the game last year.

1-b. Compute the degree of operating leverage.

2. Management is confident that the company can sell 18,000 games next year (an increase of 3,000 games, or 20%, over last year). Given this assumption:

a. What is the expected percentage increase in net operating income for next year?

b. What is the expected amount of net operating income for next year? (Do not prepare an income statement; use the degree of operating leverage to compute your answer.)

Explanation of the answer is now provided as follows:

1-a. Prepare a contribution format income statement for the game last year.

The contribution format income statement for the game last year can be prepared as follows:

Magic Realm, Inc.

Contribution Income Statement

For Last Year

<u>Details                               Total ($)       Per Unit ($)   </u>

Sales                                 300,000              20

Variable cost                <u>    (90,000)   </u>          <u>  (6) </u>

Contribution margin         210,000               14

Fixed expense                <u> (182,000) </u>

Net operating income   <u>   28,000  </u>

1-b. Compute the degree of operating leverage.

Degree of Operating Leverage = Contribution Margin / Operating Income = $210,000 / $28,000 = 7.50

2-a. Management is confident that the company can sell 18,000 games next year (an increase of 3,000 games, or 20%, over last year). Given this assumption: What is the expected percentage increase in net operating income for next year?

Since:

Degree of Operating Leverage = Percentage change in Operating Income / Percentage change in Sales

Substituting the relevant values, we have:

7.50 =  Percentage change in Operating Income / 20%

Percentage change in Operating Income = 7.5 * 20% = 150%

Therefore, the expected percentage increase in net operating income for next year is 150%.

2-b. Management is confident that the company can sell 18,000 games next year (an increase of 3,000 games, or 20%, over last year). Given this assumption: What is the expected amount of net operating income for next year? (Do not prepare an income statement; use the degree of operating leverage to compute your answer.)

This can be calculated as follows:

Change in Net Operating Income = 150% * $28,000 = $42,000

Expected amount of Net Operating Income = Current Net Operating Income + Change in Net Operating Income = $28,000 + $42,000 = $70,000

6 0
3 years ago
The Pinetop Corporation issues 1,000 shares of 6%, $100 par value preferred stock at the beginning of 2014. All remaining shares
lidiya [134]

Answer:

$12,000 and $6,000

Explanation:

For computing the dividend, first we have to find out the yearly dividend which is shown below:

= Number of shares × par value per share × dividend rate  × number of years

= 1,000 shares × $100 × 6%  × 2 years

= $12,000

Out of $18,000, the $12,000 will be paid to preferred stockholders and the remaining $6,000 will be paid to common stockholders

5 0
3 years ago
, suppose the book value of the debt issue is $70 million. In addition, the company has a second debt issue on the market, a zer
vlada-n [284]

Answer: See explanation

Explanation:

a. The company's total book value of debt will be:

= Value of debt + Value of zero coupon bonds

= $70 million + $100 million

= $170 million

b. The market value will be:

= Quoted price × Par value

= ($70 × 1.08) + ($100 × 0.61)

= $75.6 + $61

= $136.6 million

c. The aftertax cost of debt will be:

= (1 - Tax rate) × Pre tax cost of debt

= (1 - 35%) × 5.7%

= 65% × 5.7%

= 3.7%

5 0
2 years ago
Which of the following provides a consumer with the deepest comprehension and the greatest chance of accurate recall? a. Spreadi
horrorfan [7]

Answer:

Personal elaboration

Explanation:

Personal elaboration is the simplest and important form of recall memory. In this process, the consumer can recall the deepest comprehension and then there is the greatest chance to recall accurately.  

Different strategies play a great part in this process.

  • To describe the place in details
  • Use very specific words
  • Show taste, smell, feeling, smell.
  • To show the comparison between two similar things
  • To use the exact words from another person
  • To describe something movement about objects
  • Show the feeling that how something has happened  
3 0
3 years ago
Estee Lauder advertises a new facial cream by putting free samples of the cream in a magazine. The extent to which a product or
Jobisdone [24]

Answer:

d) Trialibility.

Explanation:

Under trialibility a customer can take trial of the product and then, take a decision whether to adapt the product or not.

In this manner, company saves itself from launching the product at complete market level, and incurring cost at the same level.

In the given instance also, company, launches the product on a trial basis and the launch is limited to specific users, that is the product is on trial and then the launch will be made at full commitment only when the trial period will be successful.

Therefore, correct term is

Trialibility

3 0
3 years ago
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