All categories

3 years ago

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

You might be interested in

The distinguishing feature of economic capital (as opposed to financial capital, like money) is that it is:__________. a. expens

seraphim [82]

Answer:

C. Productive

Explanation:

3 0

3 years ago

For each of the following items, indicate whether it would be classified as an (O) operating activity, an (I) investing activity

dmitriy555 [2]

Answer:

The categorization is shown below:

Explanation:

The cash flow statement includes three types of activities which are listed below:

1. Operating activities: It involves those transactions that after net income affect the working capital. It will subtract the rise in current assets and a reduction in current liabilities, while adding the reduction in existing assets and a rise in current liabilities.

This will moderate the adjustments in working capital. In addition, the depreciation expenses are applied to the net profit and the loss on the selling of assets is added, while the gain on the sale of assets is excluded

2. Investing activities: it tracks operations that involve purchasing and selling long-term properties. Purchase is cash outflow while selling is cash inflow

3. Financing operations: it tracks transactions that have an impact on long-term debt and equity balance of shareholders. Share issue is a cash inflow while redemption and dividend are cash outflows.

Therefore, the categorization is shown below:

(1) Received cash dividends from investments in trading securities. = an (I) investing activity

(2) Collected accounts receivable from customers.= an (O) operating activity

(3) Issued bonds payable for cash.= a (F) financing activity

(4) Paid wages to employees. = an (O) operating activity

(5) Issued stock for cash. = a (F) financing activity

(6) Sold equipment for cash. = an (I) investing activity

(7) Purchased land in exchange for a note payable. = a significant (N) non-cash financing and investing activity

(8) Paid cash dividends. = a (F) financing activity

(9) Received interest from investments in trading securities. = an (I) investing activity

(10) Purchases of land for cash. = an (I) investing activity

7 0

3 years ago

Net loss can be thought of as a __________ to the Capital account. Debit Credit

xz_007 [3.2K]

Answer:

The answer is Credit.

Explanation:

Net loss can be thought of as a Credit to the Capital account.

6 0

2 years ago

What team would a writer, illustrator, and and agent be in?

makvit [3.9K]

Answer:

a writer, illustrator and an agent would be in a cross functional team

8 0

3 years ago

Producer surplus is the difference between the _____ price and the minimum price at which a producer would be willing to sell a

gogolik [260]

Answer:

Market

Explanation:

Producer surplus is the difference between the market price and the minimum price at which a producer would be willing to sell a particular quantity.

Producer surplus is known to be the total amount that a producer benefits or gains from producing and selling a quantity of a good at the market price. The total revenue that a producer receives from selling their goods minus the total cost of production equals the producer surplus.

5 0

3 years ago