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Zolol [24]
3 years ago
10

In a push based system of distribution which relies on selling to customers through a sales force and retail partners, managers

direct their promotional efforts more towards
Business
1 answer:
Elanso [62]3 years ago
6 0

Answer:

a) channel members.

Explanation:

A push-based distribution system can be defined as one whose production plan is directed from management to the market, where products are sent through a channel until they reach retailers, and then to the final consumer.

Therefore, managers direct their promotional efforts more towards channel members, so that the path that the product goes through to reach the final consumer is effective so that the product arrives in the right way, in the right quantity and at the right time to the consumer. Effective management of the company 's distribution channel helps to reduce costs, reduce delays, speed up the capacity to meet demand, increase customer satisfaction, etc.

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soldier1979 [14.2K]

The fundamental relationship of economic value creation to competitive advantage is that an increase in one will leads to another. Due to that, we can say that other competitors’ economic value creation will decrease. These changes will lead to a relative shift in cost structure and a shift in consumers’ behavior to pay more.

Competitive markets deal with homogenous products and with too many producers and due to that no one producer can create a monopoly. As in monopoly, the market deals with non-homogenous products with single or few producers.

Further descriptions are below here about the relationship between value creation and competitive advantages:

  • Fundamental in strategic management
  • Provides the foundation upon which to formulate a firm's competitive strategy for cost leadership or differentiation
  • A firm has a competitive advantage when it creates more economic value than rival firms.

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According to the public choice modelLOADING...​, how do policymakers arrive at their​ decisions? The public choice model suggest
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"how would the distribution of income change if social security were privatized?"
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Premium Watches, Inc. produces and sells children’s smart watches. The company started the year 2019 with 1,500 watches and prod
borishaifa [10]

Answer:

(1)Cost of Good Manufactured $191,830(2)) Net income $21,547.25 (3) cost of producing one watch $2.45

Explanation:

The question is not complete, here is the missing part of the question

Premium watches inc

Income statements As at December 31st, 2018

Sales revenue (67,500 watches) 269,500

Unearned rent revenue. 4,000

Gain on sale of investment. 1,200

Royalty revenue. 500

Interest payable. 1,500

-----------

Total Revenue. 276,700

Less operating expenses

Indirect manufacturing labour cost 7,200

Utilities 9,200

Direct manufacturing labour cost 47,000

Factory equipment 50,000

Direct materials purchased 95,000

Insurance expense 2,500

Rent Expense 27,000

Interest expense 300

Selling expense 34,700

Administrative expense 30,900

Research & development expense 4,000

Short term investment 8,000

Dividend paid 500

Restructuring cost 6,000

Total operating expenses. 327,300

------------

Net operating loss. ($50,600)

(a) 65% of utilities & 70% of insurance expense related to factory operations. Apply the remaining amount equally to selling expense & Administrative expense

(b) 90% of the rent expense is associated with factory operations. Allocate the remaining 10% equally to selling expense and Administrative expense

(c) Factory equipment is estimated to have a useful life of 5 years with a $5,000 salvage value remaining at the end of its useful life. The company uses the straight line method of depreciation.

(d) inventory balances at the beginning and ending of the period were

January 2018. Dec 31,2018

Direct materials. 4,600. 7,000

Work in process. 9,000. 12,000

Finished goods. 3,750. ?

These amount were not taken into account when the statement were prepared

(e) The company tax rate is 21%

The president is dissapointed with the result of operations and has asked you to review the income statement and make a recommendation as to whether the company should look for a buyer for its assets Required

(1) prepare a schedule cost of good manufactured for the year ended December 31, 2018

(2) prepare a corrected multiple -step income statement for the year ended 31st December, 2018

(3) Calculate the cost of producing one watch if the company produced 110,000 watches in 2018 (round your answer to 2 decimal places )

Here is the solution

Schedule cost of Goods Manufactured for the year ended December 31st, 2018

Beginning work in process inventory

Direct materials used

Add: Beginning Direct materials 4,600

Add: purchases of Direct materials 95,000

Add: Direct Labour. 47,000

------------

Prime Cost. 146,600

Add: Manufacturing overhead

Indirect material labour cost 7,200

Utilities. 5,980

Insurance. 1,750

Rent Expense. 24,300

Depreciation of factory equipment 9,000

Add: Beginning work in process 9,000

Less: Ending work in process. 12,000

-----------

45,230

------------

Cost of Good Manufactured. 191,830

---------------

(2) corrected Multiple - step income statement for the year ended December 31st, 2018

Sales. 269,500

Less: Cost of good sold 195,580

----------

Gross Margin. 73,920

Operating Expenses

Utilities 3,220

Insurance 750

Selling Expense 12,145

Administrative expense 9,270

Rent allocated to selling expense 3,470

Rent allocated to Administrative expense 3,090

Research &Development expense 5,000

Prepaid insurance expense 4,000

Restructuring cost 6,000

-----------------

46,945

------------

Operating income. 26975

Interest expense. 300

------------

Income before taxes. 27,275

Income taxes. 5,727.75

--------------

Net income. 21,547.25

------------------

(3) To calculate the cost of producing one watch if the company produced 110,000 watches in 2018

Sales / Numbers of watches produced

= 269,500 / 110,000

= $2,45

Workings of schedule of cost of Goods Manufactured

Utilities =0.65 × 9,200 = 5,980

Insurance = 0.7 × 2,500 = 1,750

Rent Expense = 0.9 × 27,000 = 24,300

Factory equipment depreciation = Cost - Salvage value / Number of years

= 50,000 - 5,000 / 5

= 45,000 /5

= 9,000

Workings of cost of Goods sold

Cost of good sold = Beginning finished good inventory + Cost of Good Manufactured - Ending finished good inventory

= 3,750 + 191,830

= 195,580

Workings of income statement

Utilities = 0.35 × 9,200 = 3,220

Insurance= 0.3 × 2,500 = 750

Selling Expense = 0.35 × 34,700 = 12,145

Administrative expense = 0.3 × 30,900 = 9,270

10% of rent expense allocated to selling & Administrative

Selling = 0.1 × 34,700 = 3,470

Administrative = 0.1 × 30,900 = 3,090

Income taxes = 0.21 × 27,275 = 5,727.75

4 0
3 years ago
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