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3 years ago

Giant Company has three products, A, B, and C. The following information is available:

Business

1 answer:

myrzilka [38]3 years ago

7 0

Answer:

$24,000

Explanation:

Product A Product B Product C

sales 70,000 97000

Variable cost 37000 51000

Contribution margin 33000 46000

Avoidable cost 10,000 20000

Unavoidable cost 7000 12000 9400

Operating income 16000 14000

Total operating income if product C is dropped is (16000+14000 +3400-9400)

=$24000

Please note that Giant company with still incur the unavoidable cost even if the product is dropped. This is assumed to be a portion of the fixed overhead expenses allocated to the product in the course of normal operation.However , the loss made of 3400 will be avoided as well

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Companies that successfully implement customer relationship management (CRM) tend to: a. customize the goods and services offere

Zolol [24]

Answer:

a. customize the goods and services offered to their customers.

Explanation:

Customer relationship management refers to the technology, principles, policies, considerations, and principles applied by businesses to ensure the satisfaction of their customers. The ultimate purpose of customer relationship management is to meet the needs of the customers, thus making them happy and satisfied.

When an organization customizes the goods and services offered to their customers, they are offering a personalized buying experience that would make the customers happy. They would also have a sense of belonging and the feeling of being recognized. The result might translate to increased sales.

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3 years ago

Effects of internal migration to the labour force

Tcecarenko [31]

Answer:

Internal migration is the permanent displacement of certain groups of people within the same country, that is, from one region to another of the same nation. These displacements usually occur for economic reasons (that is, not for humanitarian issues, such as wars or major crises, since in those cases migration generally occurs abroad), such as work or personal relocations, such as life choices.

This type of migration tends to occur from rural areas to urban areas, and in general the labor force in cities increases, while that of rural areas decreases.

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2 years ago

If a tax is levied on the sellers of a product, then the demand curve will a. become flatter. b. not shift. c. shift up. d. shif

Lera25 [3.4K]

If a tax is levied on the sellers of a product, then the demand curve will become flattered.

Option A. becomes flattered.

If a tax is levied on sellers of a product, then the supply decreases, the supply curve will shift to the left. The demand curve will not shift. This is shown in the following figure;

S+tax Price E1 pl p 0 q1 q Quantity х

In the above figure, the x-axis shows quantity and the y-axis shows the price. D is the demand curve and S is the supply curve. As a result of the tax, the supply curve will shift to the left. The price increases from p to p1 and quantity decreases from q to q1.

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2 years ago

Karl Harris, a marketing critic, is concerned about the pervasiveness of marketing. He points out that advertising messages are

vekshin1

Answer: te correct answer is B) Cultural pollution

Explanation:

Cultural pollution is a defilement of culture and it is when too much mass of art, language, clothing, media and products whose existence is really meaningless is represented in society. Cultural pollution can be enjoyed in earnest by uncritical people, and ironically by the jaded and educated.

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3 years ago

High Flying takes tourists on helicopter tours of Hawaii. Each tourist buys a $190 ticket; the variable costs average $57 per pe

Dennis_Churaev [7]

Answer:

a. 450 tours per month

b. $850 per month

c. CM Ratio = 0.7

1. Increase

2. Decrease

3. No Effect

Explanation:

The questions are:

a. Compute the average number of tours the company must conduct per month to break even

b. Compute the average sales revenue needed per month to produce a target average profit of $53,200

c. Calculate the contribution margin ratio. (Round your answer to 2 decimal places.)

d. Determine whether the actions that follow will increase, decrease, or not affect the company's break-even point.

1. A decrease in tour prices.

2. The termination of a salaried clerk (no replacement is planned).

3. A decrease in the number of tours sold.

Solution:

Selling Price = 190

VC = 57

Unit Contribution Margin = $133

Fixed Cost = 718,200 yearly, so monthly is:

718,200/12 = 59,850

Break even occurs when by selling tours they will cover monthly fixed cost of 59,850 [each tour will get 133], thus:

59,850/133 = 450 tours per month

718,200 FC yearly, means, monthly:

718,200/12 = $59,850

Profit needed 53,200, so we would need to cover:

53200+59850 = $113,050

Each tour gives Unit CM to be $133, so we would need revenue of:

Rev = 113,050/133 = $850

Contribution margin ratio is the quotient of difference in sales and var expenses to sales.

So,

CM Ratio = (Sales - Var Exp) / Sales

CM Ratio = (190 - 57) / 190 = 0.7

If the tour prices, decrease, there will be less revenue coming in so the break even point would go higher.

So, break even point will increase

If a salaried clerk is terminated, it will decrease the salary costs of the company. This is decrease the fixed costs of the company (annual wages and salaries), thus it will be easier to cover the new, lower, fixed costs. Thus, the break even point will decrease

A decrease in number of tours sold would proportionally change the variables and other costs and revenues associated. If you look at the calculation above, you will see that "number of tours" won't affect the Break Even Point. Thus, this action will create "no effect".

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3 years ago