<span>A business products producer which has given its salespeople the right to adjust prices when necessary to get new business is using a flexible-price policy. Having a flexible pricing strategy is critical in every product's lifecycle. Companies will use this policy to increase the selling price of a product to make necessary adjustments with current trends. </span>
<span>Big business is concerned with profit, and thereby decreasing costs including worker salaries and wages. The economy transformed because it is hard for small business to compete and with large entities that leverage scale. Working people lose bargaining power and job security.</span>
Answer:
Primary reasons a company would decide to expand internationally are as follows:
- Expanding markets and increasing sales are one of the primary reasons.
- Companies get globalized in order to become a market leader.
- The company may choose to enter into international market in order to diversify a company's product line.
- Markets and investments would be protected by companies once they enter into international market and get engaged in an international business.
- Controlling the expenses is again one of the most important reasons. Company would buy the resources to gain cost advantage.
- For example, the company which is located in Canada gets most of their resources from China; the company would look forward to get situated near China.
- Another reason would be, to get protected from their competitors or to gain advantage over them; the company would decide to expand internationally.
The three motivational factors that induce a company to go global are as follows:
- Economies of Scale — The advantage that a company gain through mass production to achieve the lowest possible production cost per unit.
- Economies of scope — The advantage that a firm gains by producing different varieties of products and services and at different regions.
- Low-Cost Production Factors — It is an opportunity to purchase the resources at the lower possible cost.
Jaguar Land Rover decided to manufacture cars outside the UK for the first time. In recent years, it has rapidly expanded in its home UK and the company is planning to go to Brazil and implement the strategies that they had implemented in India.
Jaguar Land Rover moves to other countries to gain the opportunity of producing at a lower price and to gain economies of scale.
Answer:
Effect on income= $115,000 decrease
Explanation:
Giving the following information:
Fixed costs= $45,000
Number of units= 20,000
Unitary contribution margin= $8
<u>To calculate the effect on income, we need to use the following formula:</u>
Effect on income= decrease in fixed costs - decrease in contribution margin
Effect on income= 45,000 - 20,000*8
Effect on income= $115,000 decrease
Answer:
=$5,533.33
Explanation:
James took four weeks of paid leave. It means earned his salary but missed out on overtime earnings.
His hourly pay is $25; overtime pay will be $50 per hour
Monthly qualifying income is similar to average monthly income. The term is used mostly in credit assessments.
regular monthly income for James equal to yearly pay divide by 12 months
=$52,000/12
=4,333.333
Overpay income
6 hours per week x 4 weeks per month x $50 per hour
=6 x 4 x $50
=24 x $50
=$1200
Monthly qualifying income = 4,333.33 + 1200.00
=$5,533.33
