In order to implement a cost-leadership strategy effectively, a <span>functional and mechanistic</span> structure is preferred in a firm. The cost leadership strategy in business was developed by Michael Porter regarding competitive advantage. The ultimate goal is to achieve the lowest cost of manufacturing and operating your product within the industry.
Answer:
a. $508,000
b. $420,000
Explanation:
a. Assets = Equity + Liabilities
669,000 = Equity + 161,000
Equity = 669,000 - 161,000
Equity = $508,000
b. Assets = Equity + Liabilities
(669,000 - 127,000) = Equity + (161,000 - 39,000)
542,000 = Equity + 122,000
Equity = 542,000 - 122,000
= $420,000
<span>Sustainable Growth Rate is = ( 1- Dividend Payout Ratio ) X RoE
Now, We have to find out the RoE of the given problem.
Return on Equity (RoE) = (Net Profit Margin) X (Asset Turnover)
X(Equity Multiplier).
= (0.05) X (1.40) X (1.50)
=0.105 or 10.5%
Now Sustainable Growth Rate(SGR) = (1- .40) X 0.105
= .063 or 6.3%
So, According to the question SGR of Green Giant is = 6.3%</span>
Answer:
The Price Elasticity for increased sales relieved from ticket sales as a result of reduction in price is option <u>A) Elastic</u>
Explanation:
Suppose the Washington Wizards owner lowers the price of Wizard game tickets and the total revenue he receives from ticket sales rises. This would be evidence that the price elasticity of demand for Wizards tickets is elastic.
Price elasticity of demand refers to a standard used to measure how much price changes can affect the quantity of goods demanded or sold.
Price Elasticity of demand could be
- Elastic
- Inelastic
- Unitary
- Perfectly Inelastic
When reduction in price brings about a rise in quantity demanded and by implication more sales such that total revenue increases, The price Elasticity of demand is Elastic.
This is the applicable option for Washington Wizards business.