Answer:
$8.00 per item
Explanation:
A company makes product and its 3% of products are faulty. There is no other quality inspection test which can identify the faulty products during the manufacturing process. The faulty products are only identified when the customer arrives to return it. The faulty product costs the company $200 each and company wants to make profit of $2.00 per item. It should charge price of $8.00
The calculation is as follows,
let selling price is
- (0.03 * 200) = 2.00
after rearranging the equation we get;
= 2 + 6
= 8
Private brands or if not private labels is the answer.
Answer: D. Would government regulations significantly impede Vytel's ability to make profits?
Explanation:
The challenge to doing business in the country is that there are barriers to entry which are most probably government regulations.
The opportunity however is that there is a demand for Vytel's products and services which means that there is a chance to make profits.
The question the consulting firm should be asking therefore is if the profits that could be made could be impacted by the government regulations so significantly that there would be no benefits.
Answer:
<h2>C. Makes domestic consumer worse off. </h2>
Explanation:
A tariff is levied on the exports and imports between two countries. It is meant to regulate the foreign trade and encourage the domestic industries and safeguard them from the competition of foreign goods. Tariffs are source of income for states. Tariffs and import export quotas are most used instruments of protectionism. Tariffs are fixed or variable.
It can put the domestic consumer in an advantageous position as due to tariffs they would not be able to get less costly products.