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Answer:
$897
Explanation:
The cost price is $23,000
The commission is 6%
Total commissions paid = 6/100 x $23,000
=0.06 x $23,000
=$1,380
If Sarah receives 35 %, then the broker gets 65 % the commission.
65% of $ 1, 380
=65/100 x 1380
=.65 x 1380
=$897
Keep the product:
Sales $500,000Variable Expenses 340,000
---------------------------------------
Contribution Margin 160,000
Fixed Manufacturing 220,000
Net operating income (60,000)
Drop the product:
Sales $0
Variable Expenses 0
----------------------------
Contribution Margin 0
Fixed Manufacturing 180,000
Net operating income (180,000)
Difference of keep and drop the product would be:Sales ($500,000)
Variable Expenses 340,000
-----------------------------------------
Contribution Margin (160,000)
Fixed Manufacturing 40,000
Net operating income (20,000)
Therefore, net operating income would decrease by $20,000 if Product A were dropped.
Answer:
technological change is fast-paced and competition revolves around rapidly evolving product features.
Explanation:
A differentiation strategy works best when technological change is fast-paced and competition revolves around rapidly evolving product features.
