Correct
b. the percentage a financial institution pays you to borrow your money
Inventory Costs plays a major role in ascertaining working capital requirements as well structuring cash flow statement.
Explanation:
In the given example,
inventory cost 40 percent
Inventory Value $400 million
Ratio of inventory cos ts to inventory value = Inventory Cost / Inventory Value
.
so in the current case it will be 40% x/$400 million
Hence, Inventory Cost 160 Million
Since the cost is fairly on a higher side at 40$ it should try to reduce it which will help in improving its bottom-line.
Company should focus on offering on discounts and promotions and reduce Obsolete Stock.
It should work on restructuring and organizing warehouse costs by prioritizing inventory based on their movements.
The procurement team should order in minimum quantities and benchmark reorder point.
Answer: True - Monopolistic competition
Explanation:
The monopolistic competition is one of the type of imperfect competition in which the various types of industries selling the products and the services that is basically differentiated from others.
In the monopolistic competitors, the different types of decision taken by an organizations are not directly affecting the other competitors in the market.
According to the question, the J. Pitner's is basically refers to the monopolistic competition in the given competitive environment as it helps in establishing the reputation by offering the various types of high quality services.
Therefore, Monopolistic competition is the correct answer.
Answer:
Mrs Smith either shut down the business or invest in efficient equipements that lowers the total cost to below $7
Explanation:
The reason is that the you can not make profit if you product is sold in the market at a higher price than the competitor who offers the same product with the same features. So here, Smith can not make profits by selling the product at $8 because here total cost is $8.25 per unit.
So either she should invest in the business equipments which bring efficiencies and keeps the total costs to below $7 or she should shut down her business because the business is turned into loss making machine.
Most of the small business found that small, community banks were more willing to lend money to small operations, it is due to the credit crunch during the recent recession. The community banks are more willing to help the small businesses to gain again their capital or investment.
