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Vladimir [108]
3 years ago
15

A chemical engineer working for a large chemical products company was asked to make a recommendation about which of three mutual

ly exclusive revenue alternatives should be selected for improving the marketability of personal care products used for conditioning hair, cleansing skin, removing wrinkles, etc. The alternatives (X, Y, and Z) were ranked in order of increasing initial investment and then compared by incremental rate of return analysis. The rate of return on each increment of investment was less than the company's MARR of 17% per year. The alternative to select is: Group of answer choices
Business
1 answer:
anastassius [24]3 years ago
6 0

Answer: a. DN

Explanation:

The Minimum Acceptable Rate of Return (MARR) which is also known as the Hurdle Rate is the rate of return that will be earned by an investment to ensure that it will cover its cost.

This means that below the MARR, the project will bring in less than the costs it incurred. This is therefore not ideal.

The rate of return on each increment was less than the MARR of 17% which means that they are not profitable.

The company should not invest or rather Do Nothing.

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While setting the price of a product, what must managers consider? A cost of the whole marketing mix B) buying capacity of the c
Naddik [55]

Answer:

While setting the price of a product, managers must consider all of the following: A) cost of the whole marketing mix B) buying capacity of the customers C) profit it should bring the company D) transportation cost E) personnel cost to the company

Explanation:

Key factors in calculating the sale price can be:

  • Costs are a major factor in determining the selling price and a way of forming a price that is primarily related to costs called “ground” because it represents the minimum at which the price can be set. It includes cost plus other costs with no projected or minimal profit;
  • Demand/buying capacity as a key factor in price calculation is tied to a method called the "ceiling" because capacity exceeds the price limit that customers are willing to accept to get a product or service.
  • Competition as a pricing factor refers to alternatives that customers can choose from, and competition allows them to do so;

Cost-based pricing has its sub-methods such is Cost plus method

The basic principle is to add a rate of profit to the sum of direct and indirect costs. This way price consider a profit to it should bring to company.

Direct costs include material and labor costs, and indirect or general costs comprise a portion of fixed indirect costs such as depreciation, administration costs, sales costs and other general costs.

Formula: price = Direct costs + Indirect costs + Rate of profit

5 0
3 years ago
While reconciling your check register to your bank statement, you notice that your check register balance is $1250.00, while you
muminat

Answer:

You could have done a transaction that you didn't take into consideration in the check register.

this might be:

1. check

2. debit card withdrawal or POS transaction

3. Bank charges

4. fees for an order of checks

6 0
3 years ago
A monopolist’s inverse demand function is P = 150 – 3Q. The company produces output at two facilities; the marginal cost of prod
Setler [38]

Answer:

Given : Inverse demand function : P = 150 - 3Q

Marginal cost of producing at facility 1: MC1(Q1) = 6Q1

Marginal cost of producing at facility 2: MC2(Q2) = 2Q2

Here we will first find Total Revenue.

i.e.  Total Revenue(T.R) = P*Q

T.R(Q) = (150 - 3Q)*Q = 150Q - 3Q^{2}

Where Q = Q_{1} + Q_{2}

MR = \frac{\delta T.R}{\delta (Q_{1}+ Q_{2})}

(a) MR = 150 - 6Q

MR = 150 - 6(Q_{1} + Q_{2})

(b) Since we know that profit maximizing condition is given as :

MR = MC

Therefore , profit maximizing condition for facility 1 is

150 - 6(Q_{1} + Q_{2}) = 6Q_{1}

150 - 12Q_{1} - 6Q_{2}

Similary profit maximizing condition for facility 2 is

150 - 6(Q_{1} + Q_{2}) = 2Q_{2}

150 - 6Q_{1} - 8Q_{2}

Now, evaluating these two equations. We get ;

150 - 12Q_{1} - 6Q_{2} - 150 - 6Q_{1} - 8Q_{2}

Q_{2} = 3Q_{1}

Therefore, the profit maximizing level of output for facility 1 is

Q_{1} = 5

Q_{2} = 15

(c)The profit maximizing price is

P = 150 - 3Q

P = 150 - 3(Q_{1}+Q_{2})

P = 150 - 3(5 + 15)

P = 150 - 60

P = 90

7 0
3 years ago
Which of the following is NOT a property right?
ioda
D. to use the item to cause harm to another person
8 0
3 years ago
Read 2 more answers
Kurt Company purchased $5,000 of merchandise from Marilyn Company with terms of 2/10, n/40. What percent discount will Kurt Comp
PilotLPTM [1.2K]

Answer:

(a) 2%

(b) 40 days

Explanation:

given data

purchased = $5,000

solution

we have given term 2/10, n/40

so payment is done with in 10 days from date of purchase

so 2 % discount is allowed

and

term show that due date for payment is 40 days from date of purchase

if we not done with in limit

so it is consider as a late

3 0
3 years ago
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