Answer:
= $132,000.
Explanation:
There are two types of fixed costs, general fixed cost and specific fixed cost.
<u><em>General fixed costs </em></u><em>are those that cannot be traced to a specific product rather they are incurred for the benefit of all of the product being produced. For example,the rent of the factory where three products are being produced</em>
So they are unavoidable should a product be ceased for production that is they would still be incurred either way.
<u>S</u><u><em>pecific fixed costs </em></u><em>are those incurred specifically for a particular product and as such they would be saved should the product be discontinued. For example , if a special machine that cost $4000 a month to rent is used to produce a product. The $4000 would be saved should the production of the product ceases</em>
The net operating cost of the company would increase by the amount of the avoidable specific fixed cost:
=$90,000 + $42,000
= $132,000.
This is True.
Being an entrepreneur means starting a business venture by placing a new product on the market and then profiting from it.<span />
Answer:
The correct answer would be, The Canadian Airline would have used Lost Customer Recovery Strategy.
Explanation:
When the sales of the Canadian Airline declines, they surveyed their target market which is Business Class Travelers. From the responses of the customers, they found out that customers feel bounded by the staff of the airplane. They think that they were totally controlled by the staff on board.
Now if the Canadian Airline would have surveyed their former customers, then they would have known why they left their airline, and what was their concerns and what they want in this airline; then the strategy used by them would have Lost Customer Recovery Strategy.
I know the answer is but b and d because they have the key words savings and with credit you pay lower to so the answer should be A
Answer:
Dynamic Pricing
Explanation:
Dynamic pricing is the price set to reflect the changes in environment factors and factors that are included in the company's corporate policies. In the above scenario, the company has set a different price in different scenario. The normal customer who visits the store fewer times are not given any discounts however the permanent customer is given discount. This is because of the changes in customer loyalty factor. The company is charging different in different scenarios which means it is pursuing Dynamic Pricing strategy.
