I know nothing about cars, help!!!

The competition between firms within a strategic group is:

Lelechka [254]

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.

6 0

3 years ago

Cole has a cold. Although the brand-name drug is more expensive than the generic, he buys the brand-name one. Cole is familiar w

Semmy [17]

Answer:

less risk

Explanation:

Note: The question appears to be incomplete. Another similar question has been attached for reference purpose and the answer provided herein is based upon that.

It is common consumer behavior of sticking to a brand name despite another lower cost option providing the same base or constituent. Particularly in case of necessities, the law of demand i.e lower price higher demand fails as consumer would prefer being exposed to lesser risk no matter whatever be the cost.

In the given case, the consumer i.e Cole prefers going with a brand name as it provides him with a higher degree of assurance as the brand has a certain reputation attached to it which the other generic option lacks.

Secondly owing to his familiarity with the drug and it's past usage experience, he has developed brand loyalty apparently.

Thus, Cole's decision is attributable to less risk.

4 0

4 years ago

Chrzan, Inc., manufactures and sells two products: Product E0 and Product N0. Data concerning the expected production of each pr

Molodets [167]

Answer:

Order size= $57.61 per machine hour

Explanation:

Giving the following information:

Order size:

Estimated total overhead= $581,866

Estimated total machine hours= 10,100

To calculate the predetermined manufacturing overhead rate we need to use the following formula:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Order size= 581,866 / 10,100

Order size= $57.61 per machine hour

8 0

3 years ago

Schrade Company bought a machine for $128,000 cash. The estimated useful life was four years and the estimated residual value wa

zzz [600]

Answer:

Net book value (NBV) at the end of Year 2, under:

straight-line method is $67,250
units-of-production method is $21,800
double-declining balance is $32,000

If there is need for NBV for Year 1, simply subtract the depreciation for Year from the cost.

Explanation:

Under straight-line method, depreciation expense is (cost - residual value) / Estimated useful life = ($128,000 - $6,500) / 4 years = $30,375 yearly depreciation expense.

Accumulated depreciation for 2 years is $30,375 x 2 years $60,750.

The net book value of the asset (cost - accumulated depreciation) is: $128,000 - $60,750 = $67,250.

The unit-of-production method is used when the asset value closely relates to the units of output it is able to produce. It is expressed with the formula below:

(Original Cost - Salvage value) / Estimated production capacity x Units/year

At Year 1, depreciation expense (DE) is: ($128,000 - $6,500) / 135,000 units x 58,000 units = $52,200/year

At Year 2, depreciation = ($128,000 - $6,500) / 135,000 units x 60,000 units = $54,000/year

Accumulated depreciation for 2 years is $52,200 + $54,000 = $106,200.

Note that this depreciation method results in higher depreciation charge when the asset is heavily used, at this time, it was in year 2.

The NBV under this method is is: $128,000 - $106,200 = $21,800.

The double-declining method is otherwise known as the reducing balance method and is given by the formula below:

Double declining method = 2 X SLDP X BV

SLDP = straight-line depreciation percentage

BV = Book value

SLDP is 100%/4 years = 25%, then 25% multiplied by 2 to give 50%

At Year 1, 50% X $128,000 = $64,000

At Year 2, 50% X $64,000 ($128,000 - $64,000) = $32,000

Accumulated depreciation for 2 years is $64,000 + $32,000 = $96,000.

The NBV under this method is is: $128,000 - $96,000 = $32,000.

6 0

3 years ago

In 2010, the MoreForLess Company had revenues of $2,000,000 while costs were $1,500,000. In 2011, MoreForLess will be introducin

Harlamova29_29 [7]

Answer:

Differential profit Profit = $40,000

Explanation:

The differential operating profit is the difference between the operating profit before the introduction of the product and after the introduction of the new product

Profit = Revenue - costs

Profit before the introduction of the new product

= 2,000,000 - 1,500,000 = 500,000

Profit after the introduction of the new product

New revenue = (2,000,000 + 200,000) = 2,200,000

Cumulative cost = 1,500,000 + 160,000 = 1,660,000

Profit = 2,200,000 - 1,660,000 = 540000

Differential profit Profit = 540,000 - 500,000= $40,000

4 0

4 years ago