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3 years ago

The competition between firms within a strategic group is:

Business

1 answer:

Lelechka [254]3 years ago

6 0

Answer:

The correct answer is A. Greater than the competition a member of a strategic group and companies outside that strategic group.

Explanation:

Companies that sell products or offer similar services to the same segment of the population are in a strategic group. For example, a haute cuisine restaurant and a fast food restaurant are both restaurants, but companies would be in different strategic groups, since they usually do not have the same customers. Similarly, a fashion boutique and a haute cuisine restaurant serve the same clientele, but they are in different strategic groups because companies offer different products. The examination of companies that operate within the same strategic group is called analysis of strategic groups.

This type of analysis is often discussed in conjunction with the market focus. In the market approach, the population of consumers is divided into market segments that share common characteristics such as education level, income, age and gender. Research companies study the general preferences of market segments and then use those preferences in gear products and services to specific market segments that are served by strategic groups.

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Jenny Jennarator Co has the motto of placing a Jenny in every home in a state receiving more than 12 inches of snow per year. Fa

goblinko [34]

Answer:

a. 19 units

b. $56,452

c. Facility B shall be chosen.

Explanation:

As for the provided information,

We have

Costs under facility A

Cost per generator = $1,300

Setting up cost = $22,500

Number of generators = 20

Costs under facility B

Cost per generator = $950

Fixed cost = $35,000

Number of generators = 42

Selling price of generator = $2,500

a. Break even point for Type A, in units

= $\frac{Fixed\ cost}{Contrbution\ per\ generator}$

Fixed cost = $22,500

Contribution per generator = $2,500 - $1,300(Variable cost) = $1,200

Break even point in units = $\frac{22,500}{1,200} = 18.75$

since units can not be in decimals, it will be 19 units.

b. For type B contribution margin in percentage shall be:

Selling price - variable cost = $2,500 - $950 = $1,550

Contribution margin = 1,550/2,500 = 62%

Break even in dollars = $35,000/62% = $56,451.61

c. If facility Q has fixed cost = $40,000

and unit cost = $800

contribution = $2,500 - $800 = $1,700

Thus, break even in units = $40,000/1,700 = 23.5 = 24 units

As the break even for facility b = $35,000/1,550 = 22.58 = 23 units

Thus, since facility B has least break even the facility B shall be chosen, as for facility A the break even is low but profit will not be there as maximum capacity is 20 units.

4 0

3 years ago

Goodman Company borrowed $100,000 cash on September 1, 2014, and signed a one-year 12%, interest-bearing note payable. The requi

MA_775_DIABLO [31]

Answer:

The required adjusting entry at the end of the accounting period is : A) Interest expense 4,000 Interest payable 4,000

Explanation:

Interest is Accrued from September 1 ,2004 to December 31, 2014 in the 2014 accounting period. Thus we a period of over 4 months out of the 12 months in a year.

Considering the Matching or Accrual Principle Interest will only be considered for these 4 months only (Revenues and Expenses must be recorded in the period in which they Accrue or Incur)

Calculation of the Interest expense and the Interest Payable is :

=$100,000 × 12% × 4/12

=$ 4,000

8 0

3 years ago

Suppose an economy’s entire output is cars. in year 1, all manufacturers produce cars at $15,000 each; the real gdp is $300,000.

adelina 88 [10]

Formula for the Real GDP:
RGDP = Quantity in the current year x Price of the output in the base year
The base year should be the 1st year:
RGDP 1 = $300,000, P 1 = $15,000
Q 1st = $300,000 : $15,000 = 20 cars
In the 2nd year we also have: Q 2nd = 20,produced at $16,000 each.
The Nominal GDP = 20 x $16,000 = $320,000 ( market value )
But the Real GDP = 20 x $15,000 = $300,000.
Answer: The real GDP in the year 2 is $300,000.

3 0

3 years ago

Read 2 more answers

Next year, Baldwin plans to include an additional performance bonus of 0.5% in its compensation plan. This incentive will be pro

Dennis_Churaev [7]

Answer:

$29.70

Explanation:

The computation of the per hour pay is shown below:

= Wages × (1 + total raise)

where,

Wages is $28.15

And, the total raise would be

= 1 + (0.5% + 5%)

= 1 + 5.5%

= 1 + 0.055

= 1.055

Now put these values to the above formula

So, the value would equal to

= $28.15 × 1.055

= $29.70

We simply multiplied the wages by the total raise percentage

6 0

4 years ago

Which of the following is not considered a legitimate expense of a partnership? a Interest paid to partners based on the amount

never [62]

Answer:

a Interest paid to partners based on the amount of invested capital.

Explanation:

A partnership is formed between two parties that agree to go into a venture for mutual gain. The parties share ownership of the business entity and as such are entitled to profit from their equity holdings.

Interest paid based on invested capital is considered a distribution of profit by the business and not an expense. This is similar to sharing profit to shareholders in a company.

Legitimate expenses include: cost of sales, staff cost, administrative costs, advertising costs, and professional expenses like hiring an accountant.

8 0

3 years ago