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4 years ago

What is unique about costco's channel management process? what components can other retailers borrow or implement?

1 answer:

7 0

Costco is the biggest warehouse retailers in the US. It follows unique idea of low pricing. It has an excellent channel management that includes these concepts – goals – the main goal of this strategy was to give different types of brand names with private level merchandise with a low price. Policies – Costo has products which have margin that is lower than 14% and helps in providing products at optimum market price. Products – it has various products with different colors and sizes and these help the company in high volume sales.

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Tercer reports the following for one of its products. Direct materials standard (4 lbs. $2 per lb.) Actual direct materials used

Natalka [10]

Answer:

Results are below.

Explanation:

Giving the following information:

Direct materials standard (4 lbs. $2 per lb.)= $8 per finished unit

Actual direct materials used (AQ)= 300,000

Actual finished units produced= 60,000

Actual cost of direct materials used= $535,000

To calculate the direct material price and quantity variance, we need to use the following formulas:

Direct material price variance= (standard price - actual price)*actual quantity

Direct material price variance= (2 - 1.783)*300,000

Direct material price variance= $65,100 favorable

Actual price= 535,000 / 300,000= $1.783

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Direct material quantity variance= (4*60,000 - 300,000)*2

Direct material quantity variance= $120,000 unfavorable

6 0

3 years ago

Your firm is thinking about investing $200 comma 000200,000 in the overhaul of a manufacturing cell in a lean environment. Reve

Zepler [3.9K]

Answer:

EAW = -$17,545.71

Explanation:

initial investment = $200,000

cash inflows;

Year 1 = $33,000
Year 2 = $44,000
Year 3 = $55,000
Year 4 = $66,000
Year 5 = $77,000
Year 6 = $88,000
Year 7 = $99,000
Year 8 = $110,000
Year 9 = $132,000

cash outflows:

Year 1 = $20,000
Year 2 = $30,000
Year 3 = $40,000
Year 4 = $50,000
Year 5 = $60,000
Year 6 = $70,000
Year 7 = $80,000
Year 8 = $90,000
Year 9 = $100,000

EAW = equivalent annual worth = equivalent annual benefits - equivalent annual costs

to determine the EAB we must first find the PV of the cash inflows using a financial calculator = $408,348.84

EAB = (PV x r) / [1 - (1 + r)⁻ⁿ] = ($408,348.84 x 10%) / [1 - (1 + 10%)⁻⁹] = $70,905.91

to determine the EAC we must first find the PV of the cash outflows (including initial outlay) using a financial calculator = $509,395

EAC = (PV x r) / [1 - (1 + r)⁻ⁿ] = ($509,395 x 10%) / [1 - (1 + 10%)⁻⁹] = $88,451.62

EAW = $70,905.91 - $88,451.62 = -$17,545.71

5 0

3 years ago

A firm can produce steel with or without a filter on its smokestack. If it produces without a filter, the external costs on the

Licemer1 [7]

Answer: B. The firm would install the filter at a cost of $ 300,000.

Explanation:

If the community owns the property rights, they would be able to demand that the firm pay the external cost of $500,000 per year.

If on the other hand the company installed a filter, it would cost them $300,000 but then they would not have to pay the community the $500,000.

The lower cost option would be to install the filter for $300,000 which is what the firm would do.

6 0

4 years ago

Suppose you have the following information about a fictitious economy. Assume there are no taxes in this economy. Disposable Inc

djyliett [7]

The equilibrium level of consumption is $28500.

The equilibrium level of consumption is at the point where the disposable income is equal to the consumption.

If this was properly placed in a tabular form, we would clearly see that when the disposable income was at $28500, the consumption in dollars was also at the same price level.

Given this condition, we can conclude in economics that consumption is at its level of equilibrium.

4 0

3 years ago

Support functions manage and improve the efficiency of an organization's conversion processes so that more value is created.

HACTEHA [7]

Answer:

a) true

Explanation:

Support Function include Information Technology, Human Resources, Finance and Marketing. These are there to ensure that conversion process is efficient by providing support services such as sourcing of talent, fund management, communication.

3 0

3 years ago