Answer:
Niche cost leader strategy
Explanation:
In simple words, A niche cost pioneer or leader aims to exploit consumer markets that are price responsive. Its objective is to undercut all rivals' costs while remaining sustainable. Under this business strategy, the producer try to create a strong customer base by offering lower prices as it is the best motivation for the customer to try a specific product.
Thus, from the above we can conclude that the correct answer is niche cost leader.
The implied quality weight is 6/10 = 0.6. A year lived with chpitis scars is only 60% as satisfying as living a year in full health.
Answer:
30600 less 25 000 = 5600
increase in net income
Explanation
1400 units 1000 units
sales 224 000 160 000
(1400*160) (1000*160)
variable costs (106 400) (48 000)
(1400*76) (1000*48)
contribution margin 117 600 112 000
fixed costs (87 000) (87 000)
net operating income 30 600 25000
Answer:
a) 25,000
Explanation:
The computation of the economic profit is shown below;
Economic profit is
= Revenue - Explicit cost - Implicit cost
= $550,000 - $500,000 - $500,000 × 5%
= $550,000 - $500,000 - $25000
= $25,000
Hence, the economic profit on this deal was $25,000
Therefore the correct option is a.
We simply applied the above formula so that the correct value could come
And, the same is to be considered
