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anastassius [24]
3 years ago
10

Elle Appliances has recently released its "Elite" cooking range. The cooking appliances were advertised extensively with offers

for early-bird buyers and assured refunds if the goods were found defective. This resulted in a lot of hype surrounding the goods and high levels of projected demand in the market. However, after its release in the market, the products failed to substantially add to the company's profits. When the venture failed to recover even the minimum projected returns, the marketing manager blamed the production department for the delays in production, while the production manager claimed that he was doing his best to dispatch stock on the predetermined days. Which of the following best explains the failure of this venture by Elle?A) The company priced the "Elite" cooking range at relatively low rates.B) The company minimized its operating costs by using efficient production techniques.C) The company followed a low inventory system.D) Elle was a reputed company which enjoyed the loyalty of customers.E) Elle had recently acquired one its major rival firms.
Business
1 answer:
Margaret [11]3 years ago
6 0

Answer:

C) The company followed a low inventory system.

Explanation:

As the product was new, the correct estimate of expected sales could not be made, and with high demand and hype in the market the company, there was a high demand of the product.

This certainly led to stock out, and not meeting the customers needs.

Accordingly the reputation in market degraded.

This is because of low performance, because of shortage of inventory.

Therefore, the correct option is:

Poor Inventory system, which led to poor performance.

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Susan owns a car that she uses exclusively for personal purposes. Its original cost was $26,000, and the fair market value is $1
givi [52]

Answer:

$22,000

Explanation:

The original cost of the car was : $26,000

The fair market value of the car was : $12,000

The car was bought at a price higher than its fair market value by :

$26000-$12000 = $14000

She exchanges the car for $18000 to get a new one;

The loss while selling the car is : $26000-$18000=$8000

Total loss realized is  : $14000 +$8000 = $22,000

3 0
3 years ago
Arbot Co. manufactures appliances at three manufacturing facilities in the United States. Each location has a plant manager who
yanalaym [24]

The correct answer to this open question is the following.

Arbot Co. manufactures appliances at three manufacturing facilities in the United States. Each location has a plant manager who oversees the manufacturing process for that location. Segmented income statements are prepared for each plant and each product manufactured in the plant. The salary of each plant manager is a traceable fixed cost to the plant and a common fixed cost for the individual product lines made in the plant.

The traceable fixed cost for a corporation means that this cost has a relationship between cost and effect related to a particular area or region of the country, or related to a process just operated in a specific location. This traceable fixed cost is part of the equation because there is a peculiar business that includes it. Or there is a necessity to be covered.

7 0
3 years ago
Donovan's would like to increase its internal rate of growth. Decreasing which one of the following will help the firm achieve i
IgorC [24]

Answer:

D) Dividend payout ratio

Explanation:

Internal Growth Rate of a firm is the maximum growth rate at which the firm can grow without involving external financing i.e. without assuming additional debt or equity infusion in the firm. At this level of growth the cash available from the operations can be used to fund the company.

It is calculated using the formula

IGR= ROA* b / (1-ROA * b)

where

IGR is the Internal Growth Rate

ROA is return on assets

b is the retention ratio or (1-dividend payout ratio)

To answer the question we look at each option

If ROA (Return on Asset) is decreased the numerator decreases and denominator increases in equation (1) and thus the Internal growth rate decreases, so ROA is not the answer

If Net Income is reduced the Return on Assets also falls thus as in the above case Internal growth Rate decreases

If retention ratio is reduced the numerator decreases and denominator increase leading to a fall in IGR

If dividend payout ratio is decreased the retention ratio increases leading to the increase in numerator and decrease in denomonator leading to an increase in the IGR. Thus Decreasing the dividend payout ratio will increase the IGR.

If Return on Equity is reduced i.e. indirectly Net Income is reduced for the same equity the similar effect as in part for Net Income and thus reduces the IGR.

So decreasing dividend payout ratio increases the interna growth rate of a firm

3 0
3 years ago
love to learn daycare is over budget. which is the easiest category in which to cut costs? miscellaneous payroll rent utilities
alexgriva [62]

Love it or hate it, keeping a balanced budget is one of the most crucial aspects of running a daycare. No matter how excellent the service you offer is, your company will not be able to exist if you do not make more money than you spend.

You can understand exactly where your money is going and identify ways to be more efficient with careful planning and maintaining an eye on your finances. Having a system that you can use and that shows information in a way you can easily comprehend is crucial. The majority of the money you make as a child care provider comes from the parents of the children who are enrolled in your program.

To learn More about daycare from the given link.

brainly.com/question/507309

#SPJ4

3 0
2 years ago
Rocky Guide Service provides guided 1–5 day hiking tours throughout the Rocky Mountains. Wilderness Tours hires Rocky to lead
o-na [289]

Answer:

Please find the complete question in the attached file.

Explanation:

Rocky believed there would be a 30\% possibility of a July bonus for touring, i.e < 50\%, from July 1-July 15 (10 days)-. Therefore no bonus can be calculated as \$2,400 / day trip \times 10 days =\$2,400 throughout this duration.

The expected 15-day revenues from 16th July – 31st July may well be calculated as \$2,400 \times 15 \ days = \$36.000. Rocky calculated that it would get the bonus 80\% of the time. Estimates a \$240/day\ bonus \times (10\ days + 15\ days) = \$6,000

3 0
3 years ago
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