Answer:
The company's income will decrease in $1,500
Explanation:
Giving the following information:
Burlington Company offers to purchase 3,000 units at $9 each. HHI will incur special shipping costs of $2.50 per unit. HHI Company $7 of variable costs.
The company has unused capacity, so we will not have into account the fixed costs.
Total variable cost= 7 + 2.5= 9.5
Selling price= 9
Marginal contribution= -0.5
Effect in income= -0.5*3000= $-1,500
Answer: Sell at lower price
Explanation:
Marginal Utility is the amount of satisfaction that her customers will get with every additional unit of bread purchased.
If the marginal utility decreases, her customers will buy less bread because to them, it is not as valuable anymore. If she offers her bread at lower prices, the customers would buy more because the new price will align with the lower utility the customers get from the additional loaves.
Answer:
Cultural Myopia
Explanation:
Myopia in general refers to short sightedness.
A Cultural myopia refers to the belief that one's own culture is better suited and apt in all situations and circumstances and applies to all people.
In business context, this conveys the inability of a firm to adopt or modify it's product strategies as per the market conditions of a foreign nation, thereby providing standardized or same products and services as it provides in it's own domestic market.
For instance, Heinz provides different variants of it's ketchups across the globe, incorporating changes and modifications in ingredients as would better suit a market and better cater to it's needs. The company for instance provides ketchup without onion and garlic as ingredients to suit Indian market requirements.
In the given case, the chemical company applied the same French ethnocentric policies in international markets and followed the same domestic marketing policies internationally. Thus, it's expansion move failed miserably since it failed to adapt to the requirements of global markets and could not cater to them effectively.
Answer:
$38,851 approx
Explanation:
As per the information provided in the question, the minimum annual rate of return would be at-least equal to the usual rate of return the investor (here uncle) earns. Here it is 9% per annum.
Anything earned below this rate of return will not satisfy the investor since this represents the minimum required rate of return.
A=
Where A= Amount
P= Principal
r= Annual Rate Of Interest
n= period of loan
Therefore, A=
A= $38,850.87 or $38,851 approx.