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s344n2d4d5 [400]
2 years ago
11

A business may survive and prosper during the growth stage even though it has neither differentiated its offering from competito

rs nor attained the lowest-cost position in its industry. But during the transition period, such is not the case." Which of the following strategic traps leads to such a state?
A. Failure to recognize the events signaling the beginning of the shakeout period
B. Getting caught in the transition period without a clear strategic advantage
C. Failure to recognize the declining importance of product differentiation and the increasing importance of service
D. Giving up market share too easily in favor of short-run profit
Business
1 answer:
Elan Coil [88]2 years ago
6 0

Answer:

B. Getting caught in the transition period without a clear strategic advantage.

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Answer: a.$275,000

Explanation:

Let us assume local production sales of 0 for simplicity of analysis.

At 0 there will be no Variable Costs and no fixed costs because they are dependant on the amount of units produced.

If then Rylan Corporation receives 25,000 units at $16 per unit this will change the Variable costs as it will have to incorporate the new units.

The question however says that normal production continues. This means that Fixed costs do not change. That means fixed costs remain at $0.

That means the only change will be the Variable costs of selling 25,000 units.

At a rate of $11 per unit we then have,

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The costs have increased by $275,000 from 0 which means that $275,000 is the Incremental cost.

Note that Fixed and Variable costs of 0 are improbable and we're only used for simpler analysis. Feel free to try the question with other number of units for your own practice. You will arrive at the same answer regardless.

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2 years ago
Bryce Co. sales are $801,000, variable costs are $465,100, and operating income is $287,000. What is the contribution margin rat
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Answer:

Contribution margin ratio= 0.42

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Giving the following information:

Bryce Co. sales are $801,000

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<u>To calculate the contribution margin ratio, we need to use the following formula:</u>

contribution margin ratio= (sales - variable cost) / sales

contribution margin ratio= (801,000 - 465,100) / 801,000

contribution margin ratio= 0.42

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B. Executive Summary

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Executive Summary is a business plan which comes first and should be written last

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