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Setler [38]
3 years ago
10

A company that manufactures and sells kitchen scrubbing sponges has significantly lower cost structures than its competition. Th

e company sells in large volumes and has realized economies of scale in its productions of the scrubbing sponges. Besides the lower production costs, the company has little debt and sells most of its products to larger cleaning companies. Because of the company's situation, which competitive pricing approach should the company take to increase its sales volume? pricing to meet competitors O pricing below competitors pricing above competitors
Business
1 answer:
chubhunter [2.5K]3 years ago
5 0

Answer:

The correct answer is “Pricing below competitors”.

Explanation:

It is given that the organization is operating with a lower cost structure as compared to its competitor and it is also enjoying the economies of scale. Since lower cost structure makes the organization capable to keep the price of its product lower as compared to its competitor. Moreover, the lower price of a commodity will attract new customers. Consequently, its sales volume will increase.

You might be interested in
Kellogg's sells many different breakfast cereals, including Corn Flakes, Rice Krispies, Frosted Flakes, Raisin Bran, and Special
zysi [14]

Answer:

True

Explanation:

Kellogg's sells many different breakfast cereals, including Corn Flakes, Rice Krispies, Frosted Flakes, Raisin Bran, and Special K. This is an example of the breadth of the Kellogg's product mix.

<u>The product mix breadth of a business refers to the all of the products being sold by a particular brand or company. </u>

Product breadth in a retail environment is also sometimes referred to as merchandise breadth or product assortment width.

4 0
3 years ago
If the economy experiences an inflationary gap, a contractionary monetary policy will __________ investment and _______ interest
dlinn [17]

Answer:

The correct answer is: Decrease; Increase.

Explanation:

The inflationary gap or inflation is the situation where there is a sustained increase in the general price level. It erodes the purchasing power of the consumers and the real value of money.  

In such a situation a contractionary policy is required to correct the inflationary gap. Such a policy can be either monetary or fiscal.

Contractionary monetary policy is adopted by the Fed to reduce the money supply by using tools such as discount rate, open market operations, reserve ratio, etc.  

These tools are used to reduce the lending capacity of the banks. As the reserves with bank declines. Credit becomes expensive and interest rate increases.  

This raises the cost of borrowing to invest. So the investment will decline as well.

8 0
3 years ago
What are used to organize text and are identified by the bullet style , indentation, and the size of the text in power point?
mihalych1998 [28]

I believe the correct answer to this is:

“List levels”

 

<span>There are different types of list levels to use from. We can use bullets which has different symbols to choose from. We can also use numbering and also we can have a multi level list which incorporates bullet, number and alphabets.</span>

8 0
3 years ago
Olinick Corporation is considering a project that would require an investment of $324,000 and would last for 8 years. The increm
mylen [45]

Answer:

Payback period = 3.5 years

Explanation:

Net income                           $50,000.00

Add: Depreciation expense<u> $42,000.00</u>

Net annual cash inflow     <u>  $92,000.00</u>

Payback period = Initial investment / Annual cash inflows

= $324,000 / $92,000

= 3.5 years

5 0
3 years ago
Pontchartrain Company issues $20,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2017. Interest is paid on June 30 and De
solmaris [256]

Answer:

$1,568,498

Explanation:

First calculate the Amont of discount

Discount on the bond = Face value - Proceeds from the bond = $20,000,000 - $19,604,145 = $395,855  

Now prepare the bond amortization

The Bond Amortization schedule is attached with this answer, please find it.

Now calculate the interest expense for 2017

Interest Expense 2017 = $784,165.80  + $784,332.43

Interest Expense 2017 = $1,568,498.23

Interest Expense 2017 = $1,568,498

3 0
3 years ago
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