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Nadya [2.5K]
3 years ago
15

As the owner of La Boulangerie Bakery in Baton Rouge, Louisiana, you have a devoted clientele savoring your delicacies. Your sal

ty caramel cupcakes offer an irresistible salty-sweet flavor combination using fleur de sel crystals hand harvested from the pristine seas off Brittany, France. Although your cupcakes are a trendy hit, you also feature delicious cakes, squares, cookies, and breads. Your bakery has a medium-sized storefront; however, most of your business comes from supplying local restaurants and coffee shops with your tantalizing treats. You own two trucks that make deliveries to customers throughout the Baton Rouge metropolitan area.
Although La Boulangerie is financially successful, rising costs have severely undercut your profits over the past few months. You know that you are not the only business owner dealing with rising prices. Many of your suppliers have raised their prices over the past year. Specifically, the higher prices of wheat and sugar have resulted in a drastic increase in your production costs. Previously, you did not charge for deliveries made to your wholesale clients. However, you now feel that you have no choice but to add a delivery charge for each order to cover your increased costs and the rising price of gas.

Required:
As the owner of La Boulangerie Bakery, write a letter to your wholesale clients in which you announce a $20 charge per delivery. Try to think of a special offer to soften the blow.
Business
1 answer:
Mice21 [21]3 years ago
3 0

Answer:

La Boulangerie Bakery,

Baton Rouge,

Louisiana, U.S.A

25th April, 2021

Dear esteemed customers,

I bring to you an unpalatable news about the changes that would be initiated in our business approach to our customers.

As you can bear witness to, there has been a drastic increase in the cost of doing business in our industry with the notable changes being in the wheat used in producing our confectioneries, the sugar as well as the rising cost of transportation to various customers' locations.

Taking this into account, our company decided to introduce a flat rate delivery cost of $20 irrespective of the location of our customers. This would help us to minimize our production cost. Inorder to also consider our customers, there is a free 20 pieces cake (box) offered to every customer who buys 50 box of each product. This means, 50 box of cupcakes earns you one box free, 100 box cupcake purchase earns you 2 free boxes.

I do hope you would understand our challenges as a company and bear with us regarding to this delivery charge introduction.

Sincerely,

Maris Albert (For the company)

Explanation:

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The crossover point is that production quantity where total costs for one process equal total costs for another process. Hence, option D is correct.

<h3>What is crossover point?</h3>

Financial independence is secured when investment income exceeds regular income. In financial jargon, this is known as the "cross over point."

When the production expenses for one product are the same as those for another product, there is an added benefit to selling any product because the cost is the same and the income will be higher from each unit, independent of the number of units sold.

Thus, option D is correct.

For more details about crossover point, click here:

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All options are missing firm the question-

a. variable costs of one process equal the variable costs of another process.

b. fixed costs of a process are equal to its variable costs.

c. total costs equal total revenues for a process.

d. total costs for one process equal total costs for another process.

e. the process no longer loses money.

4 0
2 years ago
Carmen Company issued 10-year bonds on January 1. The 15% bonds have a face value of $100,000 and pay interest every January 1 a
il63 [147K]

Answer:

d. $7,032          

Explanation:

The computation of the interest expense is shown below:

= Sale value of the bond × market interest rate ÷ 0.5

= $117,205 × 12% ÷ 0.5

= $117,205 × 6%

= $7,032

Simply we multiply the sale value of the bond with the market interest rate so that the accurate amount of the interest expense can come.

We divide it by 0.5 because as the number of months is 6 months and total months is 12. The six month is calculated from the January 1 to July 1

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3 years ago
Several market participants interact in developed markets to organize the exchange of funds from buyers to sellers. Such institu
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Answer:

Description:

They underwrite, distribute, and design investment securities for corporations to help them raise capital.

Financial Institution:  Investment banks

Description:

They are established by an employer to facilitate and organize employee retirement funds. They are asset pools that invest in securities that have a potential to give stable returns.

Financial Institution: Pension Funds

Description:

With the use of advanced investment techniques, these largely unregulated portfolios are invested in securities. The investment objective is to offset potential losses by investing in counterbalancing securities. They are open to only a select class of investors.

Financial Institution: Hedge Funds

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3 years ago
A publisher reports that 55% of their readers own a particular make of car. a marketing executive wants to test the claim that t
Dominik [7]

Based on the percentage of readers who own a particular make of the car and the random sample, we can infer that there is sufficient evidence at a 0.02 level to support the executive claim.

<h3>What is the evidence to support the executive's claim?</h3>

The hypothesis is:

Null hypothesis : P = 0.55

Alternate hypothesis : P ≠ 0.55

We then need to find the test statistic:

= (Probability found by marketing executive - Probability from publisher) / √( (Probability from publisher x (1 - Probability from publisher))/ number of people sampled

= (0.46 - 0.55) / √(( 0.55 x ( 1 - 0.55)) / 200

= -2.56

Using this z value as the test statistic, perform a two-tailed test to show:

= P( Z < -2.56) + P(Z > 2.56)

= 0.0052 + 0.0052

= 0.0104

The p-value is 0.0104 which is less than the significance level of 0.02. This means that we reject the null hypothesis.

The Marketing executive was correct.

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8 0
2 years ago
An engineering firm wrote a new policies and procedures manual that helped everyone know exactly what to do and how to do it. Wh
defon

Answer:

The correct answer is: the cost of it.

Explanation:

To begin with, knowing that planning, organizating, controling and directing are the basis of an structured company in order to achieve efficiently those there is a cost that has to be done, therefore that the major drawback of becoming more structured in the company is the cost of doing it, due to the fact that creating documents and teaching every one how to use it and more, the costs of the company will increase as well as the company will become more structured.

3 0
4 years ago
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