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Luden [163]
3 years ago
5

A low-cost leader can translate its low-cost advantage over its rivals into superior profit performance by

Business
2 answers:
ollegr [7]3 years ago
8 0

Answer:

The low-cost leader can try to underprice the rest of the competition in order to attract more customers. Lower prices should increase total sales volume which will help to increase profits by offsetting fixed costs and increasing the total contribution margin. This strategy can be used as long as the firm is able to produce under economies of scale.

Explanation:

sashaice [31]3 years ago
5 0

Answer:

either using its low-cost edge to underprice competitors and attract price sensitive buyers in large enough numbers to increase total profits or refraining from price-cutting and using the low-cost advantage to earn a bigger profit margin on each unit sold.

Explanation:

Competitive advantage is the edge that a firm has over others in the same industry that results in higher profit margins for them.

One of the importance competitive advantages is price advantage.

This results from the firm being a low cost leader. Their cost of production is low enough for them to attract customers that are price sensitive leading to increased profits.

Also they can underprice their competitors or earn profit margins on the reduced cost of production per unit

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What does a company's code of ethics cover?
scoundrel [369]

Ethics and the law is the best option

8 0
3 years ago
Your boss would like your help on a marketing research project she is conducting on the relationship between the price of juice
djverab [1.8K]

Answer: The law of demand

Explanation:

The tabular representation (demand schedule is down below)

Price of Juice (Dollars per can)     Quantity Demanded(Billions of can)

2000                                                   0.5

1500                                                   0.75

1000                                                     1

750                                                      1.25

From the table above and the graphical representation attached, <u>the law of demand</u> is confirmed. The law of demand states that the price of a good and the quantity demanded are inversely proportional.

Notice that when the price of the juice increases, the demand decreases and when the price decreases, the demanded increases. This shows that majority of consumers will be more willing to make purchases when there is a decrease in price.

Check the attachment for the graphical representation.

Download xlsx
5 0
3 years ago
Aloan Co. provides the following sales forecast for the next three months: January February March Sales units 3,000 4,200 5,000
Natalka [10]

Answer:

Total= 3,120 units

Explanation:

Giving the following information:

production budget:

January= 3,000 units

February= 4,200 units

March= 5,000 units

The company wants to end each month with ending finished goods inventory equal to 10% of the next month’s sales.

Beginning inventory= 300 units.

To calculate the production for any month, we need to use the following formula:

Production= sales + desired ending inventory - beginning inventory

<u>January:</u>

Sales= 3,000

Desired ending inventory= (4,200*0.1)= 420

Beginning inventory= (300)

Total= 3,120 units

6 0
3 years ago
Which of the following circumstances usually comes before a period of economic contraction?
erik [133]
C
A low GDP for two or more consecutive quarters is usually followed by economic contraction. 
8 0
3 years ago
Each​ Friday, Laferty pays employees for the current​ week's work. The amount of the weekly payroll is $ 5, 000for a​ five-day w
Kisachek [45]

Answer:

1  

Db Salaries expenses__4000  

Cr Accrued salaries__________4000

Accrued on December 31

Explanation:

Accrued salaries refers to the amount of liability remaining at the end of a reporting period for salaries that have been earned by employees but not yet paid to them.

Weekly payroll 5000  

Day payroll          1000  

 

Monday-Thursday 4000  

   

1  

Db Salaries expenses__4000  

Cr Accrued salaries__________4000

Accrued on December 31

6 0
3 years ago
Read 2 more answers
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