Answer:
Brief summary of the case:
The case deals about the evolution of kindle by Company A. When the company decided to introduce kindle, its price was $399 in 2007. Company A understood that to be successful against the huge competitors, kindle must be priced low. It must be highly reliable, many features and elegance must be provided in the design of kindle. "Company A- designed kindle in State C where the research and development expertise is available.
Market research firm "IS," estimated that the manufacturing cost of kindle is about $185. The expensive components of the kindle are the display used in the Electronic ink technology and wireless cord. Company A contracted with Country C's company to produce the display. A manufacturer in Continent A produced a wireless cord of $13. Many components were contracted to the different countries to reduce the cost of the kindle to be competitive. Now, kindle became the competitor to the massive companies.
Determine if the company has decided to manufacture all the components of Electronic reader K in Country U:
If Company had decided to manufacture all the components in Country U, then it would have been more expensive. Company A cannot sell that at an affordable price. Increase in the cost of the components would increase the overall cost of the Electronic reader K. The most important strategy of Company A is to minimize the cost of the product to increase the number of sales.
Increase in the manufacturing cost will dilute their competitive advantage and it increases the cost of the product. It will lower the sales and the buyers would prefer to use the competitors' products, which are cheaper.
Determine if the company has decided to manufacture all the components of Tablet F in Country U:
It would be expensive if they decide to manufacture the components in Country U. It will not affect the sales number like Electronic reader K. as Tablet F is multipurpose. People will prefer quality and specifications than price.
Conclusion:
Manufacturing in Country U would be expensive and it increases the overall cost of the product. It would affect sales of the products.
Answer and Explanation:
The classification is as follows:
1. Dividend of preferred stock paid - Financing activity
2. Purchase of the property for a future factory - Investing activity
3. Issuance of the common stock shares - Financing activity
4.Rise in accrued liabilities - Operating activity
5. Sell some old equipment - Investing activity
The following are expected to increase in the cash flow
1. Issuance of the common stock shares
2. Rise in accrued liabilities
3. Sell some old equipment
Increase inventory holdings - Operating activity
Sell a tract of land it has held for years - Investing activity
Answer:
A. economies of scale.
Explanation:
The economies of scale is the scale where the company has the advantage of the cost that reaped by the organization in the case when there is an efficient production. It could be accomplished when the level of production or the volume of the production rises by lowering the cost
Therefore as per the given situation, the option A is correct as it fits to the current situation
Hence, the correct option is A.
Answer:
A business management degree focuses more on planning and organizing, whereas a degree in business administration provides a broad background and then allows the student to focus on a specialized area of business
Explanation:
Business administration (also known as business management) is the administration of a business. It includes all aspects of overseeing and supervising business operations. From the point of view of management and leadership, it also covers fields that include accounting, finance, project management and marketing.
Answer:
Net present value of proposal $168,166
Explanation:
Check attachment
