Answer:
new buy situation
Explanation:
The three most common types of buying situations are:
- new buy: Diane (the buyer) is trying to purchase a service for the first time (payroll management), so she is looking for potential suppliers since she never did this before.
- modified rebuy
- straight rebuy
Answer: True
Explanation:
Low Margin items refer to those that have a lower profit per unit because their costs may be higher in relation to their selling price.
High margin items are the opposite.
If the company switches from High Margin items to Low margin items, they will face a situation where they are incurring more costs per sale which would drive their profits down even if sales increase.
The optimal mix for a company should have more high margin items than low margin items.
Answer:
Decrease demand for Wendy's products.
Explanation:
This is because Wendy's is aware of the cross elasticity of demand and the effect it can have on Wendy's given a change in price of its competitors. Since the competitors are all substitute goods which means that a decrease in price of any substitute that is the competitor product will shift people from buying Wendy's to these competitors, thus reducing Wendy's product demand and its revenue.
Cross elasticity of demand for substitutes is 1> . Hence the qty demanded for Wendy's will fall more than the increased revenue by charging higher price than its competitors.
Hope that helps.
Total cost = Fixed cost + Variable cost = $3,600 + 20($600) = $3,600 + $12,000 = $15,600
Therefore, Austin's total cost is $15,600