Answer:
Option A; INCREASED COMPETITION FROM IMITATORS.
Explanation:
Innovation occurs only when something is entirely new, having never been done before. Innovation also exist when something which may have been done elsewhere is done for the first time in a given industry.
On the other hand, when other competitors in the same industry subsequently copy the innovator, even though it is something new for them, then it is imitation.
When a company comes out with a new product, its competitors typically go on the defensive, doing whatever they can to reduce the odds that the offering will eat into their sales. Responses might include: cranking up marketing efforts, offering discounts to channel partners and even lobbying for regulations that would hinder the rival's expansion.
Therefore, Lilypad's managers should prepare for INCREASED COMPETITION FROM IMITATORS next.
Answer:
The correct answer is (d)
Explanation:
Better quality can help to reduce many costs such as customer’s dissatisfaction cost, inspection cost and warrant and service cost. When customers don't like the quality of the product they are likely to buy the same product from somewhere else that is the dissatisfaction cost. Still, maintenance cost is likely to incur no matter how good the quality is. Maintenance cost helps to keep the product clean and fresh for long-term use.
Answer:
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Explanation:
Answer:
C. Decrease by $7,000
Explanation:
Calculation to determine what company's overall operating income would Decrease by
Using this formula
Overall operating income =(Product X units*Contribution margin )-Fixed overhead eliminated
Let plug in the formula
Overall operating income=(5,000 units*$5)-$18,000
Overall operating income=$25,000-$18,000
Overall operating income=$7,000 Decrease
Therefore As a result of discontinuing Product X, the company's overall operating income would:Decrease by $7,000