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Blababa [14]
3 years ago
15

g In 2009, an agricultural company introduced a new cropping process which reduced the cost of growing some of its crops. If sal

es in 2008 and 2009 were steady at $30 million, but the gross margin increased from 2.8% to 3.9% between those years, by what amount was the cost of sales reduced
Business
1 answer:
damaskus [11]3 years ago
4 0

Answer:

$ 330000

Explanation:

Gross margin represent the amount of money remaining after the removal or subtraction of cost of product or services sold from its net sales \

Gross margin = ( total revenue - costs of good sold ) × 100

the sales in 2008 and 2009 were steady at $ 30 million dollar

the gross margin increased from 2.8% to 3.9 %

the amount the cost of sales reduced = ( $ 30 million × 0.039) - ( $ 30 million × 0.028) = $ 330000

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According to him, the presence of motivators (such as; recognition and employee involvement) in an organization lead to job satisfaction.

He also stated that when "hygiene factors" (such as conducive working conditions, good supervision and job security) are absent, it causes dissatisfaction in the workplace, even though their presence don't improve job satisfaction.

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An increase in the interest rate increases the opportunity cost of holding money and leads to a reduction in the quantity of money demanded

<h3>What is opportunity cost ?</h3>

The opportunity cost of a particular activity option in microeconomic theory is the loss of value or benefit that would be incurred by engaging in that activity, as opposed to engaging in an alternative activity that offers a higher return in value or benefit.

The value of the next best alternative or option is referred to as the opportunity cost. This value may or may not be monetary. Value can also be measured using other criteria such as time or satisfaction. One formula for calculating opportunity costs could be the ratio of what you give up to what you gain.

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5 0
2 years ago
In the five C's, how is cost different from price?
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Simone started the meeting at BCD Co. by focusing the attendees on the company's current status. "We have a good product mix," s
WINSTONCH [101]

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The focus of a market development strategy are the existing customers and new customers in the targeted segments that are not currently buying the products of the company.

Market development is therefore a marketing strategy that is employed when a company wants to expand its total market by making effort to promote its current product to new consumers or a new geographical area.

From the question, the statement that  "To continue to grow, we need to target more segments" by Simone indicates that the strategic path Simone is pursuing is <u>market development</u>.

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