In this example, Wrigley used the Penetration pricing.
Penetration pricing is one of marketing strategy which aims to attract potential customers by offering lower price as its initial offering.
This pricing strategy helps a new product or service to penetrate the market and attract customers because of the low price offered.
In the question, the introductory price for chewing gum, mint mojito were set low and aims to attract new customers to the product.
In conclusion, Wrigley used the Penetration pricing to attract new customers.
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If sales volume increases and all other factors remain constant, then the Margin of safety will increase
Explanation:
The margin for safety (MOS) is described as an overall excess of current or expected revenue, expressed either in terms of currency or in units, or as a percentage of total revenues.
One of the main ways to increase the safety margin is through increasing the gross value per unit (if business conditions are favourable) and by reducing the variable cost per unit of the good. This can be accomplished by rising selling costs.
Answer:
Yes. Contract formed on June 18.
Explanation:
A contract is an agreement between two interest parties that has rights and obligations attached to them.
The fact that Brian mails a letter of acceptance on June 18 entails that an agreement has been reached.
Thus the date of the Contract is June 18.
Answer: d. Unity of direction
Explanation:
The principle of Unity of Direction is one of the 14 principles of Fayol in relation to administration. Summarised into one phrase, the principle would mean,<em> One Head One Plan</em>.
This is because the principle believes that when in a company, different departments aim to achieve distinct goals, the departments should have a sole leader and a sole plan for the goals that should be accomplished so that there is no confusion.
This is why the Akika Corporation wants to create independent domains that reflect the actions they perform and will have the distinct roles needed to help them perform the actions efficiently.
Answer:
all of the above
Explanation:
When outcomes are uncertain, a manger must recognise and describe the risks involved. After identifying the risks, the risks must be evaluated to determine the extent of the risk and how the risk would affect the business. After the risks have been evaluated, the risk should be managed. For example, by taking insurance.
For example, if a manager wants to purchase a machine,
the manger has to identify the risks involved : the machine can be stolen, it can injure workers or it might not produce the desired effect
The manger must then evaluate the risks. The risks can be evaluated using capital budgeting methods. e.g. NPV
The manger can manage the risk by taking out insurance
