Non price competition is competing against others when price isn't the driving force of differentiation. If a local restaurant repairs a new recipe for it's lunch menu it is using the physical characteristic form of non price competition. The restaurant is hoping to differentiate based on the quality and taste of their new lunch item compared with another restaurants.
Answer and explanation:
a.
the table below shows the impact of dropping beta product
Loss of Contribution Margin if Beta is Dropped (75,000*64) -$4,800,000
Traceable Fixed Manufacturing Overhead (123,000*33) $4,059,000
Incremental Contribution Margin from Additional Alpha Sales (15,000*72)
$1,080,000
Increase in Net Operating Income if Beta is Dropped $339,000
Notes:
Contribution Margin Per Unit (Beta) = 150 (Selling Price) - 15 (Direct Material) - 28 (Direct Labor) - 20 (Variable Manufacturing Overhead) - 23 (Variable Selling Expenses) = $64 per unit
Contribution Margin Per Unit (Alpha) = 195 (Selling Price) - 40 (Direct Material) - 34 (Direct Labor) - 22 (Variable Manufacturing Overhead) - 27 (Variable Selling Expenses) = $72 per unit
check the attached files for additional details
where 9=b, 10=c, etc
It is known as the Total Quality Management or TQM. It is the nonstop procedure of lessening or dispensing with blunders in assembling, streamlining inventory network administration, enhancing the client encounter, and guaranteeing that workers are doing speed with their preparation. Add up to quality administration means to hold all gatherings associated with the generation procedure responsible for the general nature of the last item or administration.
Answer:
1) Part 1. Operating Income = Revenue - Operating cost
=201,000 - 56,000
=$145,000
Part 2. Operating Income = Revenue - Operating cost
= 159,000 - 55,000
= $104,000
Part 3. Operating Income = Revenue - Operating cost
= 89,000 - 15,000
=$74,000
2. Part 1. Operating Income = Revenue - Operating cost
=201,000 - 45,600
=$155,400
Part 2. Operating Income = Revenue - Operating cost
=159,000 - 25,000
=$134,000
Part 3. Operating Income = Revenue - Operating cost
=89,000 - 55,400
=$33,600
