Answer:
The reasons why I need to restructure the company's channel of distribution are:
The company is going to enter a new market.
If we don't increase our distribution we are going to lose against our adversaries.
The existing distribution is not going to be profitable.
Explanation:
The arguments behind these reasons are that in the first place we no longer belong to the same market. The company has entered a new market and because it now has this bigger pool of customers we need to increase the channel of distribution or we are going to lose the market. That is the second reason if we don't build a distribution network we are going to let our adversaries sell their products to the new clients because we are unable to satisfy their needs. Third, the actual channel of distribution needs to improve it because if we don't do it we are going to lose by working with the same. the reason is that the capability might not be enough to satisfy the demand.
This situation is known as cannibalization. Cannibalization is a marketing strategy that refers to the reduction company's see in there sales volume, revenue or market share of a current product when they release a new product. When a company releases a new product, those who are fans of their other products will likely try the new product instead of the hold which initially brings down the volume they sell and make from the initial product.
Answer:
I think it would be the first one to be honest
Explanation:
We can define the sales mix as the proportion of products sold in a company. A calculation is made to establish the proportion of sales of a particular product and how profitable it is for a company. The calculation is performed according to the productive capacity of the company and the need of consumers for a given product.
By knowing the sales mix, you can determine the breakeven point, which corresponds to the point at which total cost and total revenue are equal.
When there is a change in the sales mix, it significantly affects the breakeven point because different products have different expenses, contribution margins, and selling price, so any change in the sales ratio of a given product will impact the breakeven point.
Answer:
The answer is 9.38%
Explanation:
This is a semiannual paying coupon. And it means West Corp pays interest twice a year.
N(Number of periods) = 24 periods ( [14years - 2 years ago] x 2)
I/Y(Yield to maturity) = ?
PV(present value or market price) = $1,030 ( 103% x $1,000)
PMT( coupon payment) = $49 ( [9.8 percent÷ 2] x $1,000)
FV( Future value or par value) = $1,000.
We are using a Financial calculator for this.
N= 24; PV = 1.030; PMT = 49; FV= $1,000; CPT I/Y= 4.69
Therefore, the Yield-to-maturity of the bond for annual is 9.38% (4.69% x 2)