Cannibalization occurs when a producer offers a new product that takes sales away from its existing products: TRUE
<h3>
What is cannibalization?</h3>
- Cannibalization in marketing strategy refers to a decrease in sales volume, sales revenue, or market share of one product when the same company releases a new one.
- Cannibalization occurs when a manufacturer introduces a new product that competes with its existing items.
- Market cannibalization occurs when a corporation introduces a new product that replaces one of its existing ones.
- When a new product is identical to an old one and both share the same client base, market cannibalization occurs.
Therefore, the statement "cannibalization occurs when a producer offers a new product that takes sales away from its existing products" is TRUE.
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The correct question is given below:
Cannibalization occurs when a producer offers a new product that takes sales away from its existing products. TRUE or FALSE
Bendel Inc. has an operating leverage of 4.8. If the company's sales increase by 13%, its net operating income should increase by about: 62.4%.
<h3>What does it mean if operating income increases?</h3>
- An organization's management is creating more revenue while managing expenses, production costs, and overhead, which is why a company generating an increasing amount of operating income is seen favorably.
- Better managerial controls, more effective resource usage, better pricing, and more successful marketing can all increase operating profit. The operational margin can be defined as the ratio of a company's profits from its main business to its total revenues.
- It could be reasonable to say that the only good operating margin is one that is positive and increasing over time because higher operating margins are generally preferable to lower operating margins. One of the most crucial accounting measures of operational efficiency is operating margin, which is universally accepted.
Bendel Inc. has an operating leverage of 4.8. If the company's sales increase by 13%, its net operating income should increase by about:
Degree of operating leverage = % Change in operating income/ % Change in Sales
4.8 = % Change in operating income/ 13
% Change in operating income = 62.4%
Bendel Inc. has an operating leverage of 4.8. If the company's sales increase by 13%, its net operating income should increase by about: 62.4%.
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Answer:
Results are below.
Explanation:
<u>The absorption costing method includes all costs related to production, both fixed and variable. </u>The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.
<u>The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead).</u>
<u>Absorption costing:</u>
<u />
Unitary fixed overhead= 940,000/23,000= $40.87
Unitary production cost= 180 + 340 + 51 +40.87
Unitary production cost= $610.87
<u>Variable costing:</u>
Unitary production cost= 180 + 340 + 51
Unitary production cost=$571
Answer:
technically, atoms have an infinite amount of levels of energy, but there are most likely 7 most known levels of atoms. All levels may contain electrons.
Explanation:
Answer:
$353,540
Explanation:
Given that
Beginning work in process inventory cost = $2,540
Additional cost of product cost to work in process = $351,000
So the amount of cost that should be transferred out is
= Beginning work in process inventory cost + Additional cost of product cost to work in process
= $2,540 + $351,000
= $353,540
