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dolphi86 [110]
3 years ago
9

Happy Foods and General Grains both produce similar puffed rice breakfast cereals. For both companies, the cost of producing a b

ox of cereal is 45 cents, and it is not possible for either company to lower their production costs any further. How can one company achieve a competitive advantage over the other?
Business
1 answer:
labwork [276]3 years ago
3 0

Answer: introduce more differentiation

Explanation: Product differentiation is a method of using various tactics to make a product stand out from the rest of the similar products sold by a competitor, in an effort to make it more appealing to its customer base. This means differentiating the product so much, that it will make it more attractive for customers to buy. This can be anything from making the product's packaging more aesthetically appealing, including some form of a bonus/gift for purchasing the product (like getting a free toy in each cereal box) etc. In the end by applying product differentiation the one company will increase the customer benefits of purchasing this product from them, hereby gaining a competitive advantage over the other company.

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To overcome possible problems with budgets that are developed only by top level managers, an alternative is to use: A. Mandatory
Dafna11 [192]

Answer:

Paticipative budgets

Explanation:

A budget can be defined as a financial plan which gives an estimate of income and expenditures. A budget is a tool that is utilized by different organisations to manage their resources inorder to achieve their various objectives and goals.

A budget shows the different costs incurred by the organisation within a particular period of time.

Participative budgets is a type of budget in which the low level management of an organization are involved in the preparation of budget. It helps to prevent top managers from unruly behaviours.

Participative budget enables the top level and low level managers to share information that will lead to the growth of the organisation.

8 0
2 years ago
The buyers of a good will want to purchase it as long as their willingness to pay for the good is
Anna71 [15]
If it is greater than or equal to the price.
hope this helps
6 0
3 years ago
The debt has an interest rate of 8.50% (short term) and 10.50% (long term). The expected rate of return on the company's shares
viva [34]

Answer:

Re = 16.02%

Explanation:

current stock price 36 x 7,660,000 = 275,760,000

cost of equity = 17.5%

current short term debt = 141,600,000

cost of short term debt = 8.5%

current long term debt = 210,600,000

cost of long term debt = 10.5%

total financing = 627,960,000

  • equity = 275,760,000 / 627,960,000 = 0.4391
  • short term debt = 141,600,000 / 627,960,000 = 0.2255
  • long term debt = 210,600,000 / 627,960,000 = 0.3354

WACC = (0.4391 x 0.175) + (0.2255 x 0.085 x 0.75) + (0.3354 x 0.105 x 0.75) = 0.0768 + 0.0144 + 0.0264 = 0.1176 or 11.76%

under the new structure:

total financing = 627,960,000

  • equity = 325,760,000 / 627,960,000 = 0.5188
  • short term debt = 141,600,000 / 627,960,000 = 0.2255
  • long term debt = 160,600,000 / 627,960,000 = 0.2557

assuming WACC remains unchanged:

0.1176 = (0.5188 x Re) + (0.2255 x 0.085 x 0.75) + (0.2557 x 0.105 x 0.75) = (0.5188 x Re) + 0.0144 + 0.0201 = (0.5188 x Re) + 0.0345

0.5188 x Re = 0.1176 - 0.0345 = 0.0831

Re = 0.0831 / 0.5188 = 0.1602 or 16.02%

4 0
3 years ago
Beta Corporation had net income of $325,000 and paid dividends to common stockholders of $39,000 in 2017. The weighted average n
Bas_tet [7]

Answer:

The price earnings ratio for Beta corporation is 8 times

Explanation:

The formula for price-earnings ratio is the stock market price divided by the  stock earnings per share.

The stock market price has been given as $52 per share

the earnings per share=net income-preferred dividends/weighted average number of shares

net income is $325,000

preferred dividends is $0

weighted average number of shares is 50,000

earnings per share=($325,000-$0)/50,000=$6.5

price earnings ratio=$52/$6.5= 8 times

4 0
3 years ago
Which of the following statements about organic foods is true?
statuscvo [17]
I believe its choice D.
5 0
3 years ago
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