Answer:
The correct answer is: scrambled merchandising.
Explanation:
Scrambled merchandising refers to companies offering new products that are not necessarily related to their original business. This strategy is used when firms intend to boost their sales profits and is beneficial because the organization's store obtains the treat of one-stop shops. However, the lack of experience selling the new products could affect the business in the beginning.
2. Significant fluctuations in the market would actually be corrected
Answer:
Explanation:
What is given:
The price of a new fabricating machine - 60
The price of a one-year-old machine - 51
The real interest rate is 10% per year
Marginal product of fabricating machines 165-2K (K - desired number machines)
If calculate the depreciation, (60-51)/51 = 15%
a) Find user cost of capital
User cost of capital is the sum of interest rate and depreciation cost multiplied by the price of new machine
= 60*(0.10+0.15) = 15 units
b) Determine the number of machines that will allow Missing Link to maximize its profit
165-2K=15
2K = 150
K = 75 machines
c)
Suppose that Missing Link must pay a tax equal to 40% of its gross revenue. What is the optimal number of machines for the company?
165-2K = 15/(1-0.4)
165-2K=14/0.6
165-2K=25
2K=140
K=70 macines