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zhannawk [14.2K]
4 years ago
6

The decision to purchase a good or service or a customer benefit package is based on an assessment by the customer of the percei

ved benefits in relation to its price. True or False
Business
1 answer:
quester [9]4 years ago
8 0

Answer: True

Explanation:

The decision to purchase a good or service or a customer benefit package is totally based on the price of that package or a good and on the benefits that a consumer will received after the purchase. A rational consumer will compare the price of a good with the perceived benefits. If the perceived benefits worth greater or equal to price then a consumer may purchase that product otherwise not. Therefore, a consumer's decision is largely depend upon the ratio of price and benefits.

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A company currently sells products in the United States and is considering expanding to China or Vietnam. Expanding won't impact
mariarad [96]

Answer: Company should not expand to either.

Explanation:

Find the expected values of expanding to either country and pick the country with the highest expected value:

China:

= ∑(Probability of outcome * Outcome)

= (20% * 2,000,000) + (30% * 1,000,000) + (50% * -2,000,000)

= -$300,000

Vietnam:

= (70% * 1,000,000) + (30% * -2,500,000)

= -$50,000

<em>Both countries result in an expected loss so company should not expand to either of them. </em>

3 0
3 years ago
Fabri Corporation is considering eliminating a department that has an annual contribution margin of $35,000 and $70,000 in annua
aleksandrvk [35]

Answer:

Fabri Corporation is considering eliminating a department that has an annual contribution margin of $35,000 and $70,000 in annual fixed costs. Of the fixed costs, $25,000 cannot be avoided.

The annual financial advantage for Fabri Corporation of eliminating this department would be:

A. $10,000

Explanation:

Annual Contribution margin =                                         $35,000

Annual departmental fixed costs = $70,000

Annual unavoidable fixed costs = $25,000

Therefore, the avoidable fixed cost (70,000 -25,000) = 45,000

Loss incurred by not eliminating the department =      ($10,000)

b) Fabri Corporation will avoid incurring the loss amounting to $10,000 by eliminating the department.  This implies that it will have some financial advantage by stopping the erosion of its profit margin from other departments.

3 0
3 years ago
Many new business owners prefer a limited liability structure because there are ________.
Misha Larkins [42]

Many new business owners prefer a limited liability structure because there are less liable at a loss towards the business. Personal assets are not needed to be sacrificed

3 0
4 years ago
Bargaining associations are required to bargain without making any threats against buyers. true false
Debora [2.8K]

Workers typically obtain a larger proportion of productivity improvements as wages through collective bargaining. The given statement is true.

<h3>What is Bargaining associations?</h3>

The three primary categories of negotiation subjects are obligatory, permissible, and unlawful. The required category includes wages, health and safety, management rights, working conditions, and benefits. Topics that are permitted during the process are ones that are not required but may be discussed.

Workers typically obtain a larger proportion of productivity improvements as wages through collective bargaining. This can then encourage teamwork, boost productivity inside the company, and support stronger economic demand.

Union members typically receive greater wages, better health and pension benefits, and better working conditions. For people who decide to work in education, the advantages of unionization are essential. NEA members use collective bargaining to fight for causes other than their own financial stability.

To negotiate our union contract with the employer, including our pay, benefits, hours, holidays, sick days, staffing levels, seniority, safety, supplies, and other working conditions, a group of union members—our Bargaining Team—sits down with management.  The given statement is true.

To learn more about Bargaining associations refer to:

brainly.com/question/1130553

#SPJ4

6 0
2 years ago
When an economist says that the demand for a product has increased, this means that: consumers are now willing to purchase more
Damm [24]

Answer:

consumers are now willing to purchase more of this product at each possible price.

Explanation:

When the demand for a good or service increases, it means that consumers are buying more. In this case, according to the law of supply and demand, increasing demand will decrease inventories of good and will make it scarcer, increasing the price.

5 0
3 years ago
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