Answer: A possible reason is a drop in the price of fresh fruits and vegetables.
Explanation: The revenues of Heinz have dropped in the second quarter and one very likely possibility is that the demand for their products are on the decline. The market demand for a product is affected by a number of factors and one of them is the price of close substitutes.
In this scenario, the close substitutes for Heinz products are fresh fruits and vegetables. The second quarter of the year (May, June and July) usually records lots of rainfall and good harvests of fresh foods. A good harvest encourages lower prices. If the price of these substitute food items reduces, the consumers would tend to buy more of those, that is, the demand for fresh fruits and vegetables would experience an increase while the demand for ketchup, packaged and processed foods would experience a decline. The decline would translate into lower sales figures and subsequently low revenues.
Answer:A. May make low volume customers appear more profitable than they are.
Explanation:
The allocation of fixed cost based on sales volume will increase cost allocated to large volume sales unit which will invariably reduce their profit and will reduce the cost allocated to low volume sales which may increase their profit.
It does not affect the overall firm profitability not customers contribution margin.
Answer:
He should have given the Japanese negotiators a menu of options including the lower price.
Explanation:
As it was already on cards that whenever you negotiate you need to have some preparation beforehand and have a complete list of options you would opt if your best options fails to be executed.
Hence, Mike should have given the Japanese a list of options so that It would be easy for them to think about the offer as well as give Mike the advantage to make his deal a success through different options. And if still the options weren't good enough for the Japanese, then Mike would only be left with the option of lowering the price but he would still had a more chance of getting his deal done if he had prepared those options as well.
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Goodluck buddy.
Development is the term that refers to the continuous process by which individual changes during life.
Answer:
$4,850 under allocated
Explanation:
Giving the following information:
Manufacturing overhead is allocated at 130% of direct labor cost.
The actual manufacturing overhead costs incurred in June amounted to $41,300.
Job No. 265:
Direct labor= $35,500
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base= 1.3*35500= $46,150
Over/under allocation= real MOH - allocated MOH= 46150 - 41300= $4,850 under allocated
