1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
777dan777 [17]
3 years ago
8

Which of the following statements are correct with regards to a change in a company's sales mix? (check all that apply)- A chang

e in sales mix from high-margin to low-margin items may cause total profits to decrease despite an increase in total sales.- A change in the sales mix resulting in an increase in total sales will always result in an increase in profits.- A change in sales mix from low-margin to high-margin items may cause total profits to increase despite a decrease in total sales.- A change in the sales mix resulting in a decrease in total sales will always result in a decrease in profits.
Business
1 answer:
ololo11 [35]3 years ago
7 0

Answer:

The answers are:

  • A change in sales mix from high-margin to low-margin items may cause total profits to decrease despite an increase in total sales.
  • A change in sales mix from low-margin to high-margin items may cause total profits to increase despite a decrease in total sales.

Explanation:

A company's profit is affected by its sales mix. Profits will always be higher if high margin products or services make up a large proportion of the sales mix.  Even if total sales decrease, due to a decrease in the sales of low margin products, the company's profits might increase if more high margin products are sold.

For example, a Ford sells mostly pick up trucks, SUVs and cars. The profit margin from car sales is very low, so in order to make a larger profit the company must focus on selling more pick up trucks and SUVs. Even if the company losses market share by not selling cars, it will make more money by selling high margin products.

You might be interested in
Suppose the revenue from producing​ (and selling) x units of a product is given by Upper R (x )equals 10 x minus . 04 x squared
Volgvan

Answer:

marginal revenue is -6

and production levels 200, 50  

Explanation:

given data

R(x) = 10 x - 0.04 x²  

solution

we have given

R(x) = 10 x - 0.04 x²  

so here R'(x)  is

R'(x) = 10(1) - 0.4 (2x)  

R'(x) = 10 - 0.8 x ....................1

so here at x is 20 marginal revenue will be

R'(20) = 10 - 0.8(20)

R'(20) =  10 - 16

R'(20) = - 6

and

when revenue  is ​$400

R(x) = 400

400 = 10 x - 0.04 x²  

x= 200, 50

7 0
3 years ago
ABC Inc. just paid a dividend of $1.00 this year. The stock price is $15.43 currently. The market risk premium is 15% and the ri
mariarad [96]

Answer:

Price lowers and becomes negative or -5.37 dollars

Explanation:

Market risk premium's formula could be written as dividends/price + dividend's growth rate. Therefore, we dividend growth rate according to the current price and dividend level equal to market risk premium - dividends/price or 0.15 - 1/15.43 = 0.086 or 8.6%. If the dividend growth rate rises by 25% than new one is 33.6%. Price is equal to dividends/market risk premium - dividend growth rate or in this case 1/0.15-0.336 or 1/-0.186 or -5.37 dollars. If the price is negative that would mean that any future selling of the stock would mean that ABC would have to pay in order to sell it.

4 0
3 years ago
Linda visits her favorite clothing store and is disappointed to discover that the shirt she was hoping to purchase is out of sto
Julli [10]

Answer:

d. backorder

Explanation:

Based on the scenario being described within the question it can be said that the sales associate most likely offered to backorder the item for Linda. This is when a retailer places an order for a product that is no longer in stock for the time being, in order to comply with the customer, but will take a while for that order to come in and for the transaction to be completed.

8 0
3 years ago
Professor Foley conducted a cola taste test. Each participant in the experiment first tasted 2 ounces of Coca-Cola, then 2 ounce
aalyn [17]

Answer:

The three brand are famous soft drink brands utilized by individuals. It very well may be somewhat muddled for deciding the favored taste of the buyers. This exploratory plan is flawed as a result of the potential issues engaged with it. The test here is that the members may not give an exact rating. They may rate it the equivalent. There is an issue with this trial as one of the soft drinks going level may affect the rating of the members. As indicated by Malhotra (2010) the most widely recognized strategy utilized for testing is combined correlation. This can be utilized by the members for successful examination.  

The perplexing variable in the investigation incorporates the measure of time that went between the tasting of various soft drinks. The temperature of the soft drink additionally indicates the inclination of the members.  

The measure of time that has gone since the members had the beverage likewise chooses their inclination level.  

I would utilize correlation strategy wherein irregular examining will be picked. The refrigerated soft drinks will be given. A sense of taste chemical will be given after each drink to clean their taste. This will incorporate in excess of five preliminaries for effectiveness.

7 0
3 years ago
Paxton Company can produce a component of its product that incurs the following costs per unit: direct materials, $9.50; direct
mrs_skeptik [129]

Answer:

$7.50 per unit

Explanation:

Cost of buying from outside supplier = $33 per unit.

Relevant cost of making such component in-house = Direct materials+ Direct labor+ Variable overhead

= $9.50 per unit + $13.50 per unit + $2.50 per unit

= $25.50 per unit

Net incremental cost of buying the component = Cost of buying from outside supplier- Relevant cost of making such component in-house

= $33.00 per unit - $25.50 per unit

= $7.50 per unit

4 0
2 years ago
Other questions:
  • А.
    13·1 answer
  • You want to show the stock price of a company over the last 6 months. What type of chart would be best for this purpose?
    9·1 answer
  • Select the best answer for the question.
    5·1 answer
  • The screening process involves . A. choosing a setting to have group B. deciding how to publicize C. choosing a co-leader D. int
    9·1 answer
  • The FTC regulates businesses to prevent price-fixing and similar monopolistic practices. What is the main reason the FTC discour
    6·2 answers
  • Rachel sells 100 shares short at $43. The sale requires a margin deposit equal to 60 percent of the proceeds of the sale. If the
    5·1 answer
  • Nissan’s all-electric car, the Leaf, has a base price of $32,780 in the United States, but it is eligible for a $7500 federal ta
    12·1 answer
  • Which career would organize, train, and support teachers and educational workers to help them provide better
    5·2 answers
  • Last year Christine worked as a consultant. She hired an administrative assistant for $15,000 per year and rented office space (
    15·1 answer
  • A portfolio consists of 265 shares of Stock C that sells for $50 and 230 shares of Stock D that sells for $25. What is the portf
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!