A private place where you record your experiences and your inner life is a

Suppose Pump-U-Up lowers the price of its gym membership by 10 percent and as a result, Sweat-It-Out experienced a 16 percent de

konstantin123 [22]

Answer:

The Cross elasticity of demand will be the change in demand at Sweat-it-out divided by the change in price at Pump-U-Up

=-0.16/-0.1

= 1.6

Explanation:

The Price decrease from Pump-U-up = 10%

And the resultant decline in Gym membership at sweat-it-out is 16%

The Cross elasticity of demand will be the change in demand at Sweat-it-out divided by the change in price at Pump-U-Up

=-0.16/-0.1

= 1.6

A Positive Cross - Price elasticity indicates both Gyms are close substitutes of one another.

An attempt by one to lower its price will directly impact negatively in membership of the other.

The strategy often adopted in such line of Business is to keep prices at Par or offer distinctive services outside of the traditional, e.g include a Spar into the gym membership, or access to discounted toning or body building products etc.

5 0

3 years ago

What action involves reconfiguring or redesigning work, jobs, and processes for the purpose of improving cost, quality, service,

katrin2010 [14]

Answer:

b. Reengineering

Explanation:

Business Process Reengineering or Business Process Redesign (BPR) involves radical overhaul of company's core business processes, work, jobs, etc to achieve radical performance improvement in terms of quality of service, cost reduction, productivity etc. Company's start from zero and re-think all the processes.

Restructuring: It is significant change made to operational process or structure of a company when the company is facing financial pressure.

For Example Debt Restructuring involves change in terms of debt and creating a way to pay off debt.

Downsizing: Downsizing involves terminating multiple employees at the same time to save money.

Delayering: It is a way to remove one or more levels of hierarchy from the organisational structure. It is a way to flatten the organisation's structure.

Recruiting: It is process of finding and hiring the qualified and suitable people for a given job.

3 0

3 years ago

PPG Industries, the Pittsburgh-based manufacturer of paints, coatings, optical products, specialty materials, chemicals, glass,

Sidana [21]

Answer:

B. Scenario analysis

Explanation:

Just like the name implies, it involves the analysis or description of various possible outcomes/action/events in the future. It is the process of analyzing future event by considering alternative possible outcomes.

It estimates the expected events.

After the failures suffered by PPG, they thought it better to use a technique that predicts possible occurence in order to avoid a repetition of those failures.

4 0

3 years ago

Product Pricing: Single Product Presented is the 2017 contribution income statement of Grafton Products. GRAFTON PRODUCTS Contri

hodyreva [135]

Answer:

a)647,000

b)658,000 yes as increase net income

c) 2,480,000

Explanation:

a) current net income : 842,000

less 13,000 x 12 increce in variable manufacturing (156,000)

less increase in fixed MO (39,000)

647,000

b)

Sales 3,200,000 (16,000 x 200)

Variable (1,408,000) 988,000x16,000/13,000 + 156,000

Contribution 1,792,000

Fixed MO (819,000)

Fixed S&A (315,000)

Net Income 658,000

c)

$\frac{Fixed\:Cost + Target \: Profit}{Contribution \:Margin \:Ratio} = Break\: Even\: Point_{dollars}$

$\frac{Contribution \: Margin}{Sales \: Revenue} = Contribution \: Margin \: Ratio$

1,792,000 / 3,200,000 = 0.56

$\frac{1,134,000 + 254,800}{0.56} = Break\: Even\: Point_{dollars}$

4 0

4 years ago

3. If the Wall Street Journal published an article w/ the headline "Poultry Farmers Detect Infectious Avian Bird Flu," what woul

Vadim26 [7]

Answer:

If such a headline was published, the demand for chicken and its byproducts would plummet. The demand curve would shift to the left, meaning that the quantity demanded would decrease at all price levels.

The quality of the chicken and its byproducts has changed here, since they would turn into potentially unhealthy food.

The determinant of the demand for chicken products that is altered by this article is consumer preferences. The health of consumes is at risk, which would alter their preferences due to fear of getting sick.

5 0

3 years ago