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Archy [21]
4 years ago
9

Coca-Cola has expanded to Diet Coke, Cherry Coke, and Caffeine-free Coke, to name a few. These are examples ofa) product modific

ations.b) functional modifications.c) aesthetic modifications.d) line extensions.e) product lining.
Business
1 answer:
wel4 years ago
6 0

Answer:

D) Line Extensions

Explanation:

Line extensions represent a strategy undertaken by manufacturers to introduce additional items/products to the same product category and most times under the same brand name. Examples of how this works is to introduce new forms, colours, new ingredients, sizes or new flavours.

The goal of this strategy most times is to gain a market share of consumers who would take the already existing product but with preference for certain characteristics.

For instance, Mr. A does not like Caffeine, so even though he loves Coca-Cola, his aversion for Caffeine will make him stay away from the product. Once, the Caffeine-free Coke is introduced, then his desires and wants are satisfied, he can begin to take the product. Coca-Cola has not created a new product in a different category, but have removed a particular content to expand the existing line.

The opposite of line extension is brand extension which is the introduction of a new product in a totally different product category.  

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Read 2 more answers
A company performs 20 days of work on a 30-day contract before the end of the year. The total contract is valued at $6,000, with
snow_tiger [21]

Answer:

a. True

Explanation:

Based on the information given the required adjusting journal entry will includes a $4,000 DEBIT TO UNEARNED REVENUE reason been that we were told that the company carried out 20 days of work out of 30-day contract before the end of the year which means that the company has earned an UNEARNED REVENUE by the end of the year of the amount of $4,000 calculated as ($6,000 * 20 days /30 days) which is why the adjusting Journal entry would includes a $4,000 DEBIT TO UNEARNED REVENUE.

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3 years ago
Sage Company is operating at 90% of capacity and is currently purchasing a part used in its manufacturing operations for $15.00
UNO [17]

Answer:

$115,269 decrease

Explanation:

Below are the following information given in the question.

Purchase price = $15

Variable cost per unit = $12

Fixed cost per unit = $10. i.e $22-$10

Production in units = 38,423

N.B. As in the above scenario, we will need to factor in the variable cost per unit only in order to determine whether it is convenient to make the part in house or purchase it. Also, we will have to ignore fixed costs because of the fact that it is constant in the option of whether to buy or make part in house.

Therefore,

Option at purchasing/Buying

= $38,423 × $15

= $576,345

Option at making the part in house

= $38,423 × $12

= $461,076

Cost difference is therefore = $115,269 decrease

5 0
3 years ago
1. Nickleson Company had an unadjusted cash balance of $9,586 as of May 31. 2. The company’s bank statement, also dated May 31,
alukav5142 [94]

Answer:

$10,181

Explanation:

Given that,

Unadjusted Cash Balance as of may 31 = $9,58

Interest revenue = $18

Note Collected by Bank = $700

NSF check = $98

Bank service charges = $25

Outstanding checks = $1,461

deposits in transit as of May 31 = $210

True Cash Balance as of May 31:

= Unadjusted Cash Balance as of may 31 + Interest Earned + Note Collected by Bank - NSF check - Bank charges

= $9,586 + $18 + $700 - $98 - $25

= $10,304 - $123

= $10,181

6 0
4 years ago
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