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melomori [17]
2 years ago
10

What strategy was avon pursuing until the mid-2000s? what were the advantages of this strategy? what were the disadvantages?

Business
1 answer:
LenaWriter [7]2 years ago
8 0
Avon used Direct Sales Model Strategy until the mid-2000s. It is a method wherein the business's own employees are in direct contact with buyers as they sell their products. 

The advantages of direct sales model are:
1) strong customer relations
2) coordination with other effective business strategies
3) price and cost control
4) access to more customers

The disadvantages of direct sales model are:
1) more expensive compared to other marketing strategy
2) time consuming during sales calls or talks.
3) can be inconvenient or intrusive to clients or consumers.
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A company has budgeted fixed overhead of $1.00 per hour at expected capacity of 5,000 units which has a standard quantity of 2 h
Nastasia [14]

Answer:

$1,600 Unfavorable

Explanation:

Given that,

Budgeted fixed overhead = $1.00 per hour

Expected capacity = 5,000 units

Standard quantity = 2 hours per unit

Actual units produced = 5,200

Total overhead costs = $12,000

Controllable variance:

= Actual Overhead cost - Budgeted cost of actual production

= $12,000 - (Actual units produced × Budgeted fixed overhead × Standard quantity)

= $12,000 - (5,200 × $1 × 2)

= $12,000 - $10,400

= $1,600 Unfavorable

7 0
3 years ago
Please explain the largest benefit and and the largest risk associated with outsourcing of a company.
QveST [7]

Explanation:

Companies primarily outsource cost reduction. Yet today it is not just a matter of reducing costs but also of taking advantage of the advantages of practice for outsourcing, such as gaining professional skills, minimizing turnover, agile personnel and improving efficiency.

For many businesses, outsourcing — using external companies to handle the job usually done within a company— is a familiar concept. Small businesses often outsource manufacturing, billing, marketing, and many others because they have no choices. Most big firms outsource production to raise.

More broadly, outsourcing risks are usually covered by four broad categories: loss of control; loss of innovation; loss of trust in organizations; and higher transaction costs than expected.

6 0
2 years ago
The LeMond Corporation just purchased a new production line. Assume that the firm planned to depreciate the equipment over 5 yea
hammer [34]

Answer:

c. LeMond's net fixed assets as shown on the balance sheet will be higher at the end of the year.

Explanation:

Provided information,

There is a purchase of new production line. On which the company plans to charge depreciation as per straight line method for 5 years. As per the recent amendment the company has to charge depreciation fr 7 years under straight line method.

Thus, depreciation per year will be decreased.

As depreciation is an expense which is going to decrease with increase in duration, therefore, income will increase and accordingly taxes will increase.

Also the net balance of fixed assets will be higher, as depreciation is less.

Therefore, correct statement is

c. LeMond's net fixed assets as shown on the balance sheet will be higher at the end of the year.

8 0
2 years ago
you need a 20-year, fixed-rate mortgage to buy a new home for $210,000. Your mortgage bank will lend you the money at a 7.1 perc
Delicious77 [7]

Answer: $337,869.73

Explanation:

Find out the future value of $1,000 given an interest rate of 7.1%. If this amount is less than the future value of $210,000, the difference is added to the final payment to come up with the balloon payment.

The APR needs to be made periodic:

= 7.1% / 12

The $1,000 payment is an annuity so this can be calculated as:

= Annuity * ( ( 1 + rate) ^ number of periods - 1) / rate

= 1,000 * ( ( 1 + 7.1/ 12%) ²⁴⁰ - 1) / 7.1/12%

= $527,297.83

Future value of $210,000

= 210,000 * ( 1 + 7.1/ 12%) ²⁴⁰

= $865,167.56

Balloon payment will be:

= 865,167.56 - 527,297.83

= $337,869.73

3 0
3 years ago
Mauve company permits employees to occasionally use the copying machine for personal purposes. the copying machine is located in
serg [7]
That means they arnt paying you a lot or there not making more that there selling
6 0
2 years ago
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