During the product adjustment, you made several changes to the product in order to obtain more customer satisfaction so you will keep them as loyal customers.
After making the adjustment, the thing that you should do is inform the brand new features of the product so the potential customers become aware of it.
Answer:
Testerman Construction Co.
Internal rate of return method in analyzing capital expenditure:
Present value of expenditure = $149,630
Present of cash inflows annuity = $149,630 (using 20% discount rate and present value annuity factor of 3.3251 x $45,000)
NPV = $0 (PV of cash outflow - PV of cash inflow)
Therefore, the IRR = 20%
Explanation:
a) Data and Calculations:
Investment cost = $149,630
Annual net cash flows = $45,000
Investment period = 6 years
Annuity of future cash flows = 3.3251
b) Testerman’s IRR (Internal Rate of Return) is a capital budgeting and analysis tool which determines the discount rate that makes the present value of future inflows equal to the present value of outflows from a project. This IRR helps the managers to determine the projects that add value and are worth undertaking. IRR is based on assumptions. Similar projects with the same IRR will differ in returns due to the differences in timing and the size of the cash, the amount of debts and equity used to generate the returns, and the assumption of a constant reinvestment may which IRR makes.
Answer:
$65,750
Explanation:
Given:
Direct materials = $6.20
Direct labor = $3.70
Variable manufacturing overhead = $1.25
Fixed manufacturing overhead = $10,000
Sales commissions = $1.50
Variable administrative expense = $0.50
Fixed selling and administrative expense = $5,000
Number of unit Produced = 5,000 units
Calculation:
Production Cost = Direct Material cost + Direct labor cost + variable manufacturing overhead + Fixed manufacturing overheads.
= (5000 x $6.20) + (5000 x $3.70) + (5000 x $1.25) + $10,000
= ($31,000) + ($18,500) + ($6,250) + $10,000
= $65,750
Convenience products like Coke are available almost everywhere in the United States. Thus, Coke uses intensive distribution, which is related to the strategy of making the product available at many different retailers.
This is a marketing strategy widely used by companies that supply non-durable consumer goods, which are those that are consumed quickly, such as food, beverages and medications.
Therefore, non-durable goods such as Coke need to be replenished quickly, justifying the company's intensive distribution strategy, which makes its products easily available to consumers, increasing its profitability and positioning.
Learn more here:
brainly.com/question/3520708
Answer:
Consumer Product Safety Act of 1972
Explanation:
