Answer:
The answer is:
A 15% increase in inventory turns for Toys by Tom, Inc. would bring this ratio to 4.8 times, suggesting improvement in efficiency.
Explanation:
We have the current Inventory turnover = COGS / Inventory = 41,700/10,000 = 4.17 times
=> An 15% increase in the Inventory turnover will bring the Inventory turnover ratio to: 4.17 x 1.15 = 4.8 times;
Increasing in inventory turnover may be the result of higher sales ( thus higher COGS) or low level of inventory holding - thus limiting the resources spending on idle inventory. So, higher level of inventory turnover in someways suggesting improvement in efficiency.
Answer: $9,182,000
Explanation: This question can be done as follows :-
Total shareholders equity = paid in capitals + other paid in capitals + retained earnings - treasury stock
Putting the values into equation we get :-
Total shareholders = $32,000 + $5,200,000 + $4,200,000 - $250,000
equity
= $9,182,000
Answer:
$525
Explanation:
Given that,
Each specialized bike purchased includes free maintenance service for 12 months,
Price of the specialized bike = $700
When sold separately,
Maintenance contract = $200
Comparable but non-specialized bike = $600
Total value = $200 + $600
= $800
The whole price of the specialized bike will be based on the ratio of maintenance contract and the individual prices of non specialized bikes.
Revenue from the sale of bike:
= Price of the specialized bike × (Price of non specialized bike ÷ Total amount)
= $700 × ($600 ÷ $800)
= $700 × 0.75
= $525
Available options are:
a) defensive strategy.
b) blue ocean strategy.
c) diversified portfolio.
d) vertical integration.
e) strategic positioning.
Answer:
Option E Strategic Positioning
Explanation:
Though it seems that the company has investment in a specific niche market segment but this doesn't mean that the blue ocean strategy is followed by the company because it is not given that the competitors can whether or not manufacture such products based on their capabilities.
Furthermore, the investment is in the same industry so the investment is not diversified investment.
It is also worth noting that the company has no ambition of moving to acquire the capabilities of customers or suppliers so it is not part of vertical integration.
The company has not opted to defensive strategy otherwise it would had tried to increase its marketing budget and save costs on manufacturing and other operations.
The strategic positioning follows three principles. The first principle is that the company tries to increase the value for the shareholders by positioning the business in a specific segment which the The Toy Box Inc did by manufacturing products from expensive to low priced products. The second principle is trading-off the competition gains and losses which Toy Box Inc tried to do by offering inexpensive products as well. The third principle is finding the fit among operations of the business which Toy Box Inc did successfully by integrating marketing department with other departments. The result of integration was that the company increased its sales by offering 10% discounts on its products.
Answer:
Customer relationship era.
Explanation:
Present marketing era is often referred to as 'Customer Relationship Era', as the whole business activities including the activities of the marketing department aims at satisfying the needs and wants of the customer and thus, revolves around building a healthy relationship with the customers. Therefore, it is important for a business to focus on the customer's needs and keep a track in the changing trend in the market. Also, it takes time and financial resources to study the requirements of the customers in order to satisfy them.
