Excise taxes tend to<span> increase prices.</span>
Answer:
B, Cultural congruence
Explanation:
Cultural congruence is a kind of marketing technique/strategy in which a new product with similar characteristics as with the currently existing product is marketed. This technique of marketing helps to reduce resistance as consumers see the new product as the same as the existing product.
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Answer:
It will affect Wendy's fast- food sales negatively.
Explanation:
Especially if the competitors have larger market share than Wendy's Fast-food. There will be a switch in consumers from Wendy's Fast-food to it's competitor, therefore reducing its sales and invariably reducing it's profit.
Therefore, Wendy's fast-food should be in tune with price fluctuation of it's competitors especially if it is a price decrease.
Answer:
The answers are:
- A change in sales mix from high-margin to low-margin items may cause total profits to decrease despite an increase in total sales.
- A change in sales mix from low-margin to high-margin items may cause total profits to increase despite a decrease in total sales.
Explanation:
A company's profit is affected by its sales mix. Profits will always be higher if high margin products or services make up a large proportion of the sales mix. Even if total sales decrease, due to a decrease in the sales of low margin products, the company's profits might increase if more high margin products are sold.
For example, a Ford sells mostly pick up trucks, SUVs and cars. The profit margin from car sales is very low, so in order to make a larger profit the company must focus on selling more pick up trucks and SUVs. Even if the company losses market share by not selling cars, it will make more money by selling high margin products.
Interest paid to the share holder of a specific company that offers a dividend. (note: not all companies pay dividends).
