Answer:
a differentiation advantage
Explanation:
This scenario best illustrates a differentiation advantage. This is basically when a company is able to offer a product that, despite being the same as the competitor's product, is slightly different or offers something that the competitors do not. This small difference is what attracts the customers and increases profits. In this case, Fashion Mart Corp is differentiating their product by providing a guarantee of quality, which the competitors offering similar products cannot offer.
Answer:
Results are below.
Explanation:
Giving the following information:
Plan A:
Fixed costs= $40,000
Unitary varaible cost= $27
Plan B:
Fixed costs= $54,000
Unitary varaible cost= $26
Selling price per unit= $35
<u>To calculate the break-even point in units, we need to use the following formula:</u>
Break-even point in units= fixed costs/ contribution margin per unit
<u>Plan A:</u>
Break-even point in units= 40,000 / (35 - 27)
Break-even point in units= 5,000
<u>Plan B:</u>
Break-even point in units= 54,000 / (35 - 26)
Break-even point in units= 6,000
Answer:
1. 4,000 bags
2. 1,000
3. 180 runs
4. 18,000
5. $165,600
Explanation:
1.
Q = 
= 4,000 bags
2.
Maximum Inventory = Q* (1 - D/N/P)
4,000*0.25
= 1,000
3.
Annual demand / Bags of coffee roasted per day
36,000 bags / 200 bags
= 180 runs
4.
Annual average inventory
36,000/2
=18,000
5.
Production Cost $200 * 180 runs = $36,000
Carrying Cost $3.6 * 36,000 bags = $129,600
Total Cost = $36,000 + $129,600
= $165,600
Answer: A) direct marketing.
Explanation:
Direct marketing derives its name from the direct nature of communication it uses to communicate with customers. This means that in direct marketing, the entity advertising talks to the targets directly instead of having to go through a third party of sorts.
Southwest Airlines advertised its special offer to the intended targets directly via their email which makes this a direct marketing example.
