Answer: Company B
Explanation:
Current company:
Average time = 40 minutes
Cost = Average time x researcher cost
= 40 x $2
= $80
= $5
Company A:-
Company A will reduce the current average time by 10 minutes
Average time = 40 - 10
= 30 minutes
Cost per search = $3.50
Cost = Average time x Researcher cost + cost per search
= 30 x $2 + $3.50
= $63.50
= $6.29
Company B:-
Company B will reduce the current average time by 12 minutes
Average time = 40 - 12
= 28 minutes
Cost per search = $3.60
Cost = Average time x Researcher cost + cost per search
= 28 x $2 + $3.60
= $59.60
= $6.71
The revenue per dollar of input of:
Current Company = $5,
Company A = $6.29 and
Company B = $6.71.
The highest productivity in terms of revenue per dollar of input is provided by Company B.
Answer:
Lucia's cash flows from operating activities would be:
$132,000.
Explanation:
Accounts Receivable End: $30,000 Beginning: $29,000 = -$1,000
Accounts Payable End: $24,000 Beginning: $26,000 = -$2,000
Net Income : $ 135,000
To calculate the total cash flow from operating activities it's necessary to deduct of the Net Income the variance of these accounts which indicates a negative variance during the year, -$2,000 on accounts payable because the company paid more bills these year than before, and -$1,000 because the company expand their credit line to customers.
Cash Flow: $135,000 - $1,000 - $2,000 = $132,000.
The company's next task is to determine what objective, strategy and budget to assign to each SBU. Four strategies can be pursued: build, hold harvest, or divest.
Answer:
- $20 profit
Explanation:
In this question, we have to find out the profit which is shown below:
= Total revenue - total cost
where,
Total revenue = 10 units × $10 = $100
And, the total cost = 10 units × $12 = $120
Now put the values to the above formula
So, the value would equal to
= $100 - $120
= -$20 profit
The answer shows that the profit of $20 comes in negative.
Answer:
Development - Penetration Pricing/Price Skimming
Growth - Competitive Pricing/Value-based Pricing
Maturity - Competitive Pricing
Decline - Bundle Pricing
Explanation:
The pricing strategy that would be most effective considering both the market's needs and the product life cycle are as follows:
1. Development: If and when the product is in this stage which is the first stage of the product life cycle, there is need to penetrate the market because it is a new product, hence the need for the 'penetration pricing strategy'. Howbeit, if the company is a monopoly and there is available demand it should rather charge a high price (price skimming) until competition sets in and price is reduced to compete with the entrants.
2. Growth: At the growth phase of the product life cycle, customers have known the product and it would be wise to charge a price that suits the value perceived by customers, hence the need for 'value-based pricing'. On the other hand competitive pricing helps to match pricing with the price of substitute goods in the market.
3. Maturity: At this phase of the product life cycle sales is beginning to level-out and competition would have become intense, hence the need to stick with the 'competition pricing strategy'
4. Decline: At this stage the product is almost being phased out and outdated and the best pricing strategy is 'bundle-pricing' where the declining product is attached with trending products and sold together. For example cameras are on the decline but mobile phones are trending. A company can choose to tie both products together and sell as one.