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Sedbober [7]
3 years ago
10

The market for laundry detergents in a country has several​ players, each with a slightly differentiated product. Squeaky Clean​

Inc. produces and sells​ 20,000 tons of household laundry detergent in this market at a price of​ $4 per pack. Alex​ Dawson, the operations manager of the​ firm, thinks that a​ 50-cent increase in the price per pack of the laundry detergent will increase the​ firm's profits. The marketing​ manager, Rick​ Arnold, however, feels that an increase in price will adversely affect the demand for its product and profits will actually decline. Which of the​ following, if​ true, will strengthen​ Alex's argument?
a. Shares of Squeaky Clean are being actively traded in the stock market.
b. Squeaky Clean has recently launched a new range of car washes.
c. The current prices of most of Squeaky​ Clean's products are lower than the prices of competing brands.
d. The demand for industrial detergents is likely to increase in the near future.
e. A market survey shows that a close rival has now overtaken Squeaky Clean in quarterly sales.
Business
1 answer:
Sedbober [7]3 years ago
5 0

Answer:

c. The current prices of most of Squeaky​ Clean's products are lower than the prices of competing brands.

Explanation:

If this statement was given to be true, it would be evident that Squeaky Clean​ has a competitive advantage based on the lower price, meaning consumers are probably opting for this brand because of the competitive price.

So, if they increase the price for 50 cents, consumers wouldn't perceive it as a deal-breaker, as their median price will still remain lower than those of competitors'.

Therefore, this slight increase in the price of one product will be significant for overall profit.

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Answer:

$1,743.25 divide 360 =$4.84 taxes per day

prorate jan1-aug12=222days

222x4.84=$1,074

Explanation:

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How is price a language for buyers and sellers?​
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3 0
3 years ago
Managers in international businesses will need to evaluate the attractiveness of a country as a market or location for a facilit
ludmilkaskok [199]

Answer: Please refer to Explanation

Explanation:

When Evaluating a country's attractiveness for investment, there are several factors that should be evaluated. Key amongst them are, Benefits, Costs and Risks.

Under Benefits, the economy is evaluated based on the benefits it brings to the table. It's strengths and Opportunities. The goal is to see if these benefits present the company with adequate enough incentives to want to invest.

Under Costs, the cost of setting up and thriving is evaluated. What does the company have to pay and who do they have to pay it to in order to set up properly.

Under Threats, the factors that could adversely affect the company as a result of Investing in the country are evaluated. This is very important to know so that if need be, contingencies can be established.

Classifying the above.

1. Middle-class population growth potential. EVALUATE BENEFITS.

The middle class are the main purchasers of goods and services in the economy. In evaluating benefits the potential growth rate of the middle class should be evaluated.

2. First-mover advantages. EVALUATE BENEFITS.

Evaluating the potential benefits to be had from investing first in a country is part of Benefits Evaluation.

3. Bribe payments. EVALUATE COSTS.

Bribery payments are a cost when it comes to setting up in corrupt nations. They need to be evaluated as costs.

4. Unexpected political change. EVALUATE RISKS.

Under the evaluation of risks, this should be evaluated because a new Political leadership could have a different attitude to the company and this is a threat.

5. Infrastructure issues. EVALUATE COSTS.

Under the evaluation of cost there must be an evaluation of infrastructural issues in the country. If there are infrastructural challenges, the cost of setting up will be higher because depending on the infrastructure you'd have to bring in infrastructure from other areas and that would be expensive.

6. Resolving contract disputes. EVALUATE COSTS.

What are the costs of resolving contract disputes in the country. If they are favourable then the country is fine.

7. Free market economy. EVALUATE BENEFITS.

A free Market Economy is very useful to Entreprise. The type of economy needs to be evaluated therefore to see if it is a Free Market Economy that can benefit the company.

8. Economic uncertainty. EVALUATE RISKS.

How stable is the economy of the country in question. A country with an unstable Economy is one with a lot of Uncertainty and any company going in there will have to risk suffering losses if the Economy goes through peril.

7 0
3 years ago
Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follow: If $25,
GaryK [48]

Answer:

The missing part of the question is found below:

Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follow:

                                Total       Hiking        Fashion

Sales revenue       $480,000 $340,000 $140,000

Variable expenses 355,000 235,000 120,000

Contribution margin 125,000 105,000 20,000

Fixed expenses         76,000 38,000 38,000

Operating income (loss) $49,000 $67,000 $(18,000)

Answer

By discontinuing fashion line of business operating income would increase by $5,000

Explanation:

The impact of eliminating Fashion line is evident in the revised Income statement below:

                                                                 Hiking

Sales revenue                                         $340,000

Variable expenses                                  ($235,000)

Contribution margin                                105,000

Fixed expenses($76,000-$25,000)     ($51,000)

Operating income                                    $54,000

By discontinuing the fashion line of business,the operating income would increase by $5,000 ($54,000-$49,000) from $49,000 when operating the two lines of business to $54,000 when fashion is closed up.

The most appropriate action is to concentrate on the hiking line which might mean that Boots plus has a competitive edge in the Hiking business sector.

4 0
3 years ago
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