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larisa86 [58]
4 years ago
5

Premier Co. produces park equipment and is currently producing 10,000 park benches annually. A supplier has offered to produce t

he bench for Premier Co. for $500 per bench. Premier Co. incurs unit-level costs of $490 per unit. Premier also spends $50,000 on product design each year and incurs $100,000 of facility-level costs. Calculate the avoidable production cost for Premier Co. to produce 1 bench.
Business
1 answer:
Vera_Pavlovna [14]4 years ago
5 0

Answer:

$5

Explanation:

If Premier Co. incurs a unit-level cost of $490 per unit

Product design cost = $50000

Facility-level cost = $100000

No of units produced annually = 10000

Product design cost/unit = $50000/10000 = $5

Facility-level cost/unit = $100000/10000 = $10

Hence total production cost per unit = $490 + $5 + $10 = $505

However, the supplier is willing to produce the bench at $500 per unit

Thus avoidable production cost for 1 bench = $505 - $500 = $5

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Which one of the following statements about strategic groups and strategic group mapping is false?
katrin2010 [14]

Answer:

B. Part of strategic group map analysis always entails drawing conclusions about where on the map is the best place to be and why.

Explanation:

A strategic group is a classification of a companies or businesses in an industry based on their competitive strategy and business model. Variables such as their pricing, and what gives them an edge in competition are considered. Strategic group map analysis(used in identifying strategic groups) pays attention to where a business falls in strategic competition and the competitive dynamics of the industry. strategic group map analysis is not concerned with identifying the best competitive position for a business and why it should be in this position

5 0
3 years ago
International marketing can be defined as
malfutka [58]

Answer: Option B

           

Explanation: As the name suggests, international marketing refers to the process under which a company uses various marketing tools to operate their marketing activities in more than one country.

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For example- Starbucks is a popular brand for their variety in coffee but in China they market their tea products more due to general preference of individuals towards tea more than coffee.

6 0
3 years ago
insurance companies expend a lot of effort marketing their offerings, mainly due to the fact that insurance is a(n) ________blan
Semenov [28]

Insurance companies expend a lot of effort marketing their offerings, mainly due to the fact that insurance is an unsought product that consumers don't normally think about much.

<h3>What are unsought products?</h3>

Although a buyer may feel pressured into purchasing a product they do not want, unsought commodities are frequently bought under certain circumstances, so a marketing strategy that harasses consumers into purchasing the product will be seen as immoral. A notable example of an unasked-for good is funeral services.

Unsought goods are those that consumers are unaware of or hardly ever think about purchasing and whose acquisition is motivated by a combination of risk or worry about harm and lack of desire. Examples of well-known but unpopular things are funeral services, encyclopedias, fire extinguishers, and reference books.

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7 0
1 year ago
The financial reporting carrying amount of Johns-Hopper Company's only depreciable asset exceeded its tax basis by $750,000 at D
Sati [7]

Answer: Liability of $300,000

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Therefore, Johns-Hopper should report the deferred tax effect of this difference in its December 31, 2018, balance sheet as Liability of $300,000

7 0
3 years ago
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describe(s) interactions and patterns that operate in a family over time and that are linked to expectations. ________________is
nataly862011 [7]

Satisfaction is the accounting system linked to family loyalty and indebtedness.

<h3>What is Satisfaction?</h3>

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7 0
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