1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
atroni [7]
3 years ago
12

A company introduces a new product in the market. The company decides that the only way it could attract customers is to keep th

e price of the product lower than what its competitors charge. What advantage would the company enjoy because of the strategy it proposes to follow?
Business
2 answers:
8_murik_8 [283]3 years ago
7 0

Answer:

Company would make more money than other companies.

Explanation:

Because customers would buy more.

topjm [15]3 years ago
4 0
Lowering prices leads to higher sale volumes , making up for the lower profit margin .
You might be interested in
When Heather entered college, she wanted to be a nurse. After her second year, however, she was stressed by her course load and
PIT_PIT [208]
Yes, Heather did, in fact, experience an obstacle which influenced the choice of her career. The psychosocial stress was too much for her
4 0
3 years ago
Read 2 more answers
Project Q has an initial cost of $211,415 and projected cash flows of $121,300 in Year 1 and $176,300 in Year 2. Project R has a
vlada-n [284]

Answer:

Project Q should be accepted.

Explanation:

In this question, we have to use the profitability index formula which is shown below:

Profitability index = Present value of all years cash flows ÷ Initial investment

where,

Present value of cash inflows is calculated by applying the discount rate which is presented below:

For this, we have to first compute the present value factor which is computed by a formula

= 1 ÷ (1 +rate) ∧ number of year

number of year = 0

number of year = 1

Number of year = 2

So,

For year 1 = 0.9216 (1 ÷ 1.085) ∧ 1

For year 2 = 0.8495 (1 ÷ 1.085) ∧ 2

Now, multiply this present value factor with yearly cash inflows

So

For Project Q,

The present value of year 1 = $121,300 × 0.9216 = $111,797.235

The present value of year 2 = $176,300 × 0.8495 = $149,758.967

and the sum of all year cash inflow is 261,556.202

So, the Profitability index would be equal to

= $261,556.202 ÷ $211,415

= 1.23

For Project R,

The present value of year 1 =  $187,500 × 0.9216 = $172,811.059

The present value of year 2 = $236,600 × 0.8495 = $200,981.121

and the sum of all year cash inflow is $373,792.180

So, the Profitability index would be equal to

= $373,792.180 ÷ $415,000

= 0.90

Since, the Project Q has high profitability index than Project R, so Project Q should be accepted.

4 0
2 years ago
Jeff's Pizzeria can handle 30 orders during the day. It wanted to increase this number, so it started making its delivery boys d
MissTica

Jeff's pizzeria can handle 30 orders during the day.It wanted to increase this number,so it started making its delivery boys do minor chores in the kitchen when they were not out for delivery and made some of the chefs pick up customers' calls.This doubled the number of order Jeff's Pizzeria could handle.This approach is an example of <u>Synergy</u>

Answer: The correct answer is (B)

<u>Explanation:</u>

Synergy takes place when a concern use teams to increase performance and growth and it helps in achieving common goals.Synergy means collective performance or action which multiply the speed of team.

Synergy approach helps in speeding up the job and completing it in a desired time period.It increases the effectiveness of the team and enable the team to share common perspective,knowledge and experience.

Even if the members of the team are not talented enough but with group efforts or synergy a team can accomplish the things beyond their skills.

Synergy makes the team stronger .Ever team member gets the benefit and become prosperous.

6 0
3 years ago
Healthy foods just paid its annual dividend of $1.62 a share. the firm recently announced that all future dividends will be incr
solmaris [256]
<span>((Current value - original value) / original value) x 100 = rate of return
</span><span>(( 1.65402- 1.62) / 0.157) x 100 = Original Value
</span>Original Value = $ 21.66
<span>

</span>
7 0
2 years ago
A struggling company currently has a total value of $700,000. It owes $500,000 from debt financing (assume these are loans from
Lynna [10]

Answer:

What is the current value of the firm to the owners?

total value - debt = $700,000 - $500,000 = $200,000

Show that this in expectation decreases the firm’s value, and explain why, in spite of that, the owners of the company would want to undertake the project.

the expected value of the company after the new project = (50% x 0) + (50% x $1,200,000) = $600,000, so the net value of the company actually decreases by $100,000.

the issue here is that if things go wrong, the owners will lose $200,000, but if things go well, then the owners equity will increase by $500,000 to a total of $700,000. In this case, the expected value of this project for the owners = (50% x -$200,000) + (50% x $700,000) = $250,000.

I am assuming that this company is some type of corporation, LLC or LLP, not a partnership or sole proprietorship. Under current bankruptcy laws, when a cooperation goes bankrupt, the owners are not personally liable for it.

8 0
3 years ago
Other questions:
  • Select the items that describe what is most likely to happen when the Federal Reserve decreases the money supply.
    9·1 answer
  • Which terms will make the following statement true? When manufacturing overhead is overapplied, the Manufacturing Overhead accou
    5·1 answer
  • For the month of July, Jacobs Company incurs a direct materials cost of $6,000 for 6,000 gallons of paint produced in its Mixing
    12·1 answer
  • The owner of a life insurance policy has decided to surrender the life insurance policy to the insurer. Since inception of the l
    14·1 answer
  • Security frameworks establish behavior expectations and define policy. Policies cannot address every scenario employees will fac
    14·1 answer
  • A new truck, manufactured by General Motors Corp. (GMC), stalled in rush hour traffic on a busy interstate highway because of a
    6·2 answers
  • Given the following information for the year ended December 31, what is the ratio of cash to monthly cash expenses? Negative cas
    12·1 answer
  • Explain the limitations of statistics
    7·1 answer
  • Make a budget of 2000 dollars for a grade six pupil​
    8·1 answer
  • What can you add to your presentation from the Insert tab?
    10·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!