Answer:
A) operating income decreases by $84,000
Explanation:
Sales $700,000 ⇒ ELIMINATED, SINCE THE PRODUCTS WILL NOT BE SOLD ANYMORE
Variable Expenses ($430,000) ⇒ ELIMINATED, SINCE THE PRODUCTS WILL NOT BE SOLD ANYMORE
Fixed Expenses ($310,000) ⇒ REDUCED BY 60% TO ($124,000)
Operating Loss ($40,000) ⇒ INCOME WILL DECREASE IN TOTAL BY $124,000
Since the total decrease income will be $124,000, that represents = $124,000 (unavoidable fixed costs) - $40,000 (current loss) = $84,000 in additional losses
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Answer:
Placing blame with the customer to reduce cost.
Explanation:
Providing an excellent customer service to customers involves making sure that a customer is happy and very satisfied with a company’s products or services. It also involves providing adequate service to a customer in a timely, polite, pleasant and orderly manner. In order to provide excellent customer service the customer service representative must possess a good communication and problem resolution skills.
The customer service representative must:
1) Must have the patience and time to listen attentively to a customer complaint.
2) Must be able to respond in a timely manner.
3) Must appreciate the customers.
4) Must be able to get feedback from the customers.
The viability of Cattle Supply’s exporting strategy could be constrained by transportation costs, particularly of products that can be produced in almost any location and have a <u>low value-to-weight ratio</u>.
<h3>What is the meaning of a low value-to-weight ratio?</h3>
A low value-to-weight ratio is the comparison of the monetary value of an item versus its weight.
For example, before Cattle Supply Inc. can successfully adopt an exporting strategy, it must consider that its dairy farming equipment has low monetary value when compared with the weight, especially in transportation costs.
Though exporting should offer Cattle Supply Inc. the prospect of new markets, improved sales and profits, and a greater customer spread, it should not export when its product has a low-value-to-weight ratio.
Thus, the viability of Cattle Supply’s exporting strategy could be constrained by transportation costs, particularly of products that can be produced in almost any location and have a <u>low value-to-weight ratio</u>.
Learn more about exporting strategies at brainly.com/question/26783042