Answer:
increase in income of $80
Explanation:
Prepare an Analysis of Costs and Savings if the Company buys from Outside Supplier.
Note : The fixed costs per unit at are unavoidable are irrelevant and disregarded in this decision.
<u>Analysis of Costs and Savings</u>
Purchase Price (400 widgets × $44.00) = ($17,600)
Savings :
Variable Costs ($35.60 × 400 widgets) = $14,240
Fixed Cost ( $8.60 × 400 widgets) = $3,440
Net Income effect = $80
Conclusion :
The effect on net income if the company instead buys the widgets is an increase in income of $80
Answer:
b. market power.
Explanation:
A firm has market power when it is able to charge prices for its goods and services far above its marginal cost of production and higher than the average price charged in the market for similar goods and services.
Apple is able to charge higher price when compared with Microsoft.
Corporate level core competitencies is when a firm has unique abilities that gives it an edge over other competitors and enhances the long term success of the firm.
Multipoint competition is when a firm is competiting at the same time across many industries with the same competitors.
Brand awareness is how well a product is familiar to consumers .
In class 2 ., The Model D is the Top/ favorite one having highest market return (24%) with lowest inventory cost ($79)
Explanation:
To Determine the value of the inventory at the lower of cost or market applied to each item in the inventory. simply we should calculate the profit margin for each category
Profit margin = (market value - cost price) = Profit ÷ cost price × 100
Class 1:
Model A
46 $116 $139
Profit margin = (139 - 116) = 23 ÷ 116 × 100 = 19.32%
Model B
49 243 239
Profit margin = (239 - 243)= -4 ÷ 243 × 100 = - 1.65% (loss)
Model C
43 233 252
Profit margin = (252 - 233) = 19 ÷ 233 × 100 = 8.15%
Class 2:
Model D
37 79 98
Profit margin = (98 - 79) = 19 ÷ 79 × 100 = 24%
Model E
6 151 130
Profit margin = (130 - 151) = - 21 ÷ 79 × 100 = -13.91 % (loss)
Result
In class 1
Model A is preferable., It has the lowest inventory value and has highest market value (Returns) at 19.82%
In class 2
Model D is preferable., It has the lowest inventory value and has highest market value (Returns) at 24%
Overall the Model D is the Top/ favorite one having highest market return with lowest inventory cost
Answer:
B) related-linked strategy
Explanation:
Related linked strategies have the purpose of creating value for the organization by exploiting and developing economies of scope within the company. This means that the company will try to save money by transferring its competencies within one product line.
In this case the product line is Nocturnal Products which has expanded to include designer apparel, perfumes, watches, bags and home furnishing. The company hopes to transfer the competencies that designer apparel has to the rest of the products.
