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3 years ago

Which orientation, as it relates to marketing, maximizes a company's use of economies of scale?

Business

1 answer:

Dafna11 [192]3 years ago

6 0

Answer:

d) production orientation

Explanation:

A company that follows a production orientation chooses to ignore their customer's needs and focus only on efficiently building a quality product. This type of company believes that if they can make the best 'mousetrap,' their customers will come to them.Production Orientation is the general approach of any business that is primarily concerned with manufacturing and production processes. In a product oriented approach, business focuses and develops products based on what it is good at making or doing, rather than what the customer wants.

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A small gaming software company did not wish to run general business condition forecasting for the enhanced features added to it

Elena L [17]

Answer:

1. Cost-plus

Explanation:

Penetration pricing is when the pricing is set relative to the competition, often slightly lower than the competitors to gain marketing advantage. This does not necessarily ensure a certain gross margin.

Skim pricing is often higher than the market price, reminiscent of high quality or innovative nature of the product. This again may not be a good way to earn a determined margin.

Cost plus pricing is when a certain percentage is added to the costs to come up with the final price. This ensure that the company covers all the costs and then earns a certain percentage of gross margin.

Hope that helps.

8 0

4 years ago

On January 2, 2019, Konrad Corporation acquired equipment for $ 850 comma 000. The estimated life of the equipment is 5 years o

Grace [21]

Answer:

The depreciation expense for the year under units of production method is $ 132,000

Explanation:

Computation of depreciation expense under the units of production method

Total cost of equipment $ 850,000

Salvage value of equipment $ ( 14,000)

Depreciable basis $ 836,000

Estimated useful life in hours 38,000

Depreciation per hour of usage $ 836,000 / 38,000 $ 22 per hour used

Total usage during the year 6000 hours

Depreciation expense 6000 hours * $ 22 per hour $ 132,000

3 0

4 years ago

During the next four months, a customer requires, respectively, 600, 800, 1,200, and 900 units of a commodity, and no backloggin

Hoochie [10]

Answer:

Minimal Net cost: $ 335,000

Explanation:

In order to minimize net costs, the first step is to obtain the unitary cost including all the concepts: production + storage

The period with lower production cost is Month 1 ( $ 80 ) , and after adding storage cost ( $ 20 ) it sums $ 100.

The second Month is the next convenient one in terms of production costs ( $ 100 ).

However, is not convenient to produce the whole demand in this periods because the extra stock remaining will increase storage expenses, specially considering that storage cost is accumulative ( $ 20 per unit per each end of month).

Remaining inventory after Month 4: not efficient, as $ 60 does not cover production cost.

Therefore, the best option is:

Month 1 : to produce from 600 up to 1,400 units

Month 2 : to produce from 0 up to 800 units, according to Month 1 production ( formula= 1,400 less Month 1 production)

Month 3 : 1,200 units

Month 3 : 900 units.

Net cost: $ 335,000

*Optionally, it is correct producing 600 u in Month 1, and 800 u in Month 2: the result is the same ( Month: 1 $ 80 + $ 20 = Month 2: $ 100 )

8 0

4 years ago

FIFO reports higher gross profit and net income than the LIFO method when a.prices are increasing b.prices remain stable c.price

elena-14-01-66 [18.8K]

FIFO reports higher gross profit and net income than the LIFO method when (a)prices are increasing

Explanation:

FIFO (First in, First Out) reports higher gross profit and net income than the LIFO (Last In, First Out) method when prices are increasing. 

The FIFO method refers to an inventory system wherein the first items purchased are thought to be sold first(i.e. First In First Out) while the most recent purchases make up the ending inventory.

On the other hand, the LIFO method is just the opposite. The recent purchase are sold first and the first item purchased makes up the ending inventory(last item that is in is sold first)

6 0

3 years ago

M. Cotteleer Electronics supplies microcomputer circuitry to a company that incorporates microprocessors into refrigerators and

Molodets [167]

Answer:

The quanitity per order that minimizes the cost is 137.84 units.

Explanation:

The EOQ or economic order quantity is the quantity that should be ordered per order to minimize the cost of ordering and holding inventory. To calculate the number of units that should be ordered per order to minimize cost, we need to calculate the EOQ.

EOQ = √(2*D*O)/H

Where,

D is the annual demand in units
O is the ordering cost per order
H is the holding/carrying cost per unit per annum

Thus,

EOQ = √(2 * 250 * 19)/0.5

EOQ = 137.84

5 0

3 years ago