Answer:
if both the company integrates together, then this result may not be feasible and marketers must pay the firm's $19.
Explanation:
For one news paper, advertisers were willing to pay $10 for ads.
They were prepared to pay $19 to advertised in both news papers
If somehow marketers exploit and persuade the newspaper with which they negotiate on $10 they'll reach an agreement with profits and that at $9 from other newspaper as well, and if this approach works, then advertisers pay just $9 for both newspapers, which is equivalent to $9+$9=$18
Furthermore, if both the company integrates together, then this result may not be feasible and marketers must pay the firm's $19.
The company's merges give them marketability to influence and decide the cost to enhance the competitiveness of the company as competition decreases. The newspaper now has market dominance, and so it may not work to compromise tactics used by marketers. In other words, there are many more advertisers on the market than the newspaper available.
they can expose product flaws. they can improve operating instructions. they can help clear up supply chain bottlenecks.
Answer:
* The company’s degree of operating leverage: 1.38;
* The impact on net operating income of a 22% increase in sales: it will increase by 30.4%;
* New contribution format income statement:
Engberg Company
Contribution format income statement
Amount Percentage of sales
Sales $176,900 100%
Variable expenses 70,760 40%
Contribution margin 106,140 60%
Fixed expenses 24,000
Net operating income 82,140
Explanation:
* The company’s degree of operating leverage = Contribution / profit = 87,000/63,000 = 1.38
* The impact on net operating income of a 22% increase in sales is calculated as: Degree of operating leverage x % changes in sales revenue = 1.38 x 22% = 30.4%.
* new contribution format income statement is shown in the answer part.
Answer:
Product re positioning
Explanation:
Product re positioning is a process of altering the incumbent perception about a product's benefit , features , overall identity and targeted market in comparison to what similar competitive products are offering.
Such product can be redefined to attract a wider and new market targets.
It requires a lot of innovation , strategies and hard work as the target market has to be convinced of the changes and improvement of the product and the old view of the product completely erased.
Answer:
Purchasing power is the;
B. amount of goods that can be purchased with a unit of currency
Explanation:
The purchasing power is a measure of the value of a currency by determining how much of the goods and services a unit of that currency is able to purchase. It is always used to gauge how strong a currency is. The purchasing power is however affected by inflation. Inflation tends to reduce the quantity of goods or services that one can buy using a unit of currency.
This is because inflation causes a sudden spike in the price of goods and services in the economy, when this happens most people tend to only spend on needs rather than wants since their ability to purchase has been greatly reduced. A typical example is a case where ten years the amount that one could purchase property is definitely lower than the price of the same property now. This means that the purchasing power ten years ago is higher than the purchasing power now.
The purchasing power has the ability to affect different aspects of the economy. An example is the cost of living. When the purchasing power reduces, the people pay more for a good or service leading to a high cost of living.