Answer:
Vertical growth
Explanation:
Vertical growth occurs when a company sets up operations and distribution channels for a new product. There is an expansion from its traditional product offering.
Vertical growth aims to increase control of distribution and suppliers and scaling of product within existing line of production.
Ford motor's initiative in setting up its River Rouge Plant outside of Detroit so that iron ore could enter into one end of the plant and a finished automobile could exit out of the other end is vertical growth.
Answer:
Break-even point= 150,000 hangers
Explanation:
Giving the following information:
It charges $0.04 and estimates its variable cost to be $0.01 per hanger. Laguna’s total fixed cost is $4,500 per month.
To calculate the number of hangers we need to use the following formula:
Break-even point= fixed costs/ contribution margin
Break-even point= 4,500 / (0.04 - 0.01)= 150,000 hangers
Answer:
22 radio advertisements will be used.
Explanation:
<u>Note</u>: A similar complete question is as follow as the question provided is incomplete <em>"A company has $11,970 available per month for advertising. Newspaper ads cost $110 each and can't run more than 25 times per month. Radio ads cost $410 each and can't run more than 32 times per month at this price. Each newspaper ad reaches 5950 potential customers, and each radio ad reaches 7100 potential customers. The company wants to maximize the number of ad exposures to potential customers. Use n n for number of Newspaper advertisements and r r for number of Radio advertisements . Maximize P"</em>
Number of potential customers that can be reached due to each dollar spent in newspaper advertising = 5950 / 110 = 54.09
Number of potential customers that can be reached due to each dollar spent in Radio advertisements = 7100 / 410 = 17.32.
As the number of potential customers reached by each dollar spent is more from the newspaper advertising, we will use all the newspaper advertising opportunities before going for the radio advertisements. So, we will choose to have 25 newspaper advertisements in the month.
The cost of 25 newspaper advertisements = 25*110 = $2750.
Amount left = $11970 - $2750 = $9220.
Number of radio advertisements possible in this budget = 9220 / 410 = 22.48
Hence, 22 radio advertisements will be used.
Answer:
the cpi has understated the cost of living because of quality improvement bias
Answer:
1. a decrease in the price of natural gas
Explanation:
Given that homeowners choose to heat their houses with either natural gas or heating oil. It means that natural gas and heating oil are substitute products.
If there will be an increase in the demand for natural gas, there will invariably be a decrease in demand for heating oil.
From the options given, a decrease in the price of natural gas will result in and increase in it's demand.
