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sesenic [268]
4 years ago
6

When a firm provides a specialized product or service for a narrow target market better than competitors, they are using a ___ s

trategy?
Business
1 answer:
spin [16.1K]4 years ago
7 0
They are using the market niche strategy. 
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A company sells 15,000 units of its single product annually. Annual revenues are $450,000, variable costs are $315,000, and fixe
valentinak56 [21]

Answer:

Decrease in profit = $9,000

Explanation:

The impact on the profit would be the sum of the increase in contribution from the special order less the lost contribution by forgoing the standard order.

Accepting the special order of 3,000 units would mean losing standard contribution on 2,000 units from the current sales unit of 15,000. Remember the company only has excess capacity of 1, 000 units i.e (16000-15,000) So, the additional 2,000 units would need to be forgone at standard price.

Variable cost per unit = 315,000/15,000 = $21

Standard selling price = 450,000/15,000 = $30

Special order price = $24

                                                                                                          $

Additional contribution from special order = (24-21) × 3,000 =  9,000

Lost contribution from forgoing standard order (30-21) × 2000 =(<u>18,000)</u>

Decrease in profit                                                                          <u> (9,000)</u>

By accepting the special order, the company would lose $9,000 of its profit

7 0
3 years ago
Westerville Company accumulates the following data concerning a mixed cost, using units produced as the activity level.
KatRina [158]

Answer & Explanation:

a. Using the high-low method, Variable cost per unit is;

= \frac{Highest Variable Cost - Lowest Variable Cost}{Highest number of units - Lowest number of Units} \\\\= \frac{17,492 - 14,860}{10,480 - 8,600} \\\\= $1.40

= $1.40

b. Fixed Cost

= Total Cost at lowest unit - Variable costs at lowest unit

= 14,860 - (1.4 * 8,600)

= $‭2,820‬

c. Variable cost at 8,170 units + Fixed cost

= (8,170 * 1.4) + 2,820

= $‭14,258‬

3 0
3 years ago
Mow and Trim, a sole proprietorship that uses contract labor, has all of its authority centralized in a single person (the owner
dsp73

Answer:

Simple Structure

Explanation:

According to my research on different organization structures, I can say that based on the information provided within the question Mow and Trim is an organization with a Simple Structure. This type of structure has few rules, little work specialization and departmentalization, and the owner usually has most if not all control/authority in the organization.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

8 0
4 years ago
An advertising agency in Mexico City represents a wide range of accounts. It depicts real Mexicans enjoying everyday life. The a
Arte-miy333 [17]

Answer:

C. regional

Explanation:

The advertising agency described in the question is said to do business with several companies in Mexico City. The agency has clear skills and know-how that cater to the Mexican public.

However, the agency does not do any business with international companies, meaning that the agency is strictly regional in scope.

3 0
3 years ago
Select the correct answer from each drop-down menu.
guajiro [1.7K]

Answer: 1

Explanation:

6 0
3 years ago
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