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nika2105 [10]
3 years ago
10

Product differentiation and advertising are profitable ventures only when:

Business
1 answer:
dalvyx [7]3 years ago
3 0

Answer:

Product differentiation and advertising are profitable ventures only when:

the gain in total revenue outweighs the extra cost

Explanation:

When Company XYZ differentiates its product from competitors' through trademarks and other differentiating factors and embarks on advertising, it must watch out for cost overrun.  The undertaking for the product differentiation and advertising should be able to generate more revenue than the costs.  This will make Company XYZ determine that its differentiation and advertising make economic meaning by producing positive NPV.

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Novak corp. sells a snowboard, ezslide, that is popular with snowboard enthusiasts. below is information relating to novak corp.
Rom4ik [11]

Answer:

a. The value of ending Inventory using FIFO is $2749.

b. The value of ending Inventory using LIFO is $2667.

c. The value of ending Inventory using Average Cost method is $2713.


We have:

Date     Explanation       Units      unit cost   Total Cost


Sep-01         inv                 11              97                1067


Sep-12 purchases        44               100              4400


Sep-19 purchases         47               101              4747


Sep-26 purchases         22               102              2244


Total                                 124                                  12458


Novak sold 97 snowboards, so the number of snowboards with it at the end of September is 124 -97 = 27 units.

If Novak adopts First In First Out (FIFO) method, and 27 units are remaining, all 22 units purchased on Sept-26th and 27 -22 = 5 units from the purchases made on Sept-19th will remain in inventory.

So the value of inventory using FIFO will be (22* 102) + (5*101) = 2749

If Novak adopts Last In First Out (LIFO) method, all 11 units in inventory on  Sept-01st and 27 -11 = 16 units from the purchases made on Sept-12th will remain in inventory.

Hence inventory value using LIFO will be (11* 97) + (16*100) = 2667

We calculate the Average cost by dividing the Total Cost by total number of units purchased.

Average Cost = \frac{12458}{124} = 100.468

The value of inventory using the average cost method is 100.648 * 27 =2713.

3 0
3 years ago
Read 2 more answers
Which action would be most likely to affect whether scroll bars appear in a Word document?
Luden [163]

Answer:

-D

Explanation:

I'm pretty sure it's zooming in or out on the document

6 0
3 years ago
A bond has a $1,000 face value, a market price of $989, and pays interest payments of $69.50 every year. What is the coupon rate
____ [38]

Answer:

6.95

Explanation:

Coupon rate = $69.50/$1,000 = .0695, or 6.95 percent

4 0
2 years ago
Stephen runs a pet salon. He is currently grooming 130130 dogs per week. If instead of grooming 130130 ​dogs, he grooms 131131 ​
borishaifa [10]

Answer:

Profit will increase by $2.3

Explanation:

Data provided in the question:

If instead of grooming 130130 ​dogs, he grooms 131131 ​dogs

Marginal cost = $65.82

Marginal revenue = $68.12

Now,

The effect on his profits of grooming 131 dogs instead of 130 ​dogs will be:

Change in profit = Marginal revenue - Marginal cost

or

Change in profit = $68.12 - $65.82

or

Change in profit = $2.3

Hence,

Profit will increase by $2.3

7 0
3 years ago
In hierarchical organizational structure, communication between employees tends to
Lubov Fominskaja [6]
Multiple times and divide
6 0
3 years ago
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