1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Likurg_2 [28]
3 years ago
8

The following exercise will help you identify how business owners function within the different stages of retailing. The wheel o

f retailing describes how new forms of retail outlets enter the market. Usually, they enter as low-status, low- margin stores such as a drive-in hamburger stand with no indoor seating and a limited menu. Gradually, these outlets add fixtures and more embellishments to their stores (in-store seating, plants, and chicken sandwiches, as well as hamburgers) to increase the attractiveness for customers. With these additions, prices and status rise. As time passes, these outlets add still more services and their prices and status increase even further. These retail outlets now face some new form of retail outlet that again appears as a low-status, low-margin operator and the wheel of retailing to as the cycle starts to repeat itself.
As defined by the Wheel of Retailing, rank the following items in their positions on the wheel as time passes.
a) Rank the options below. Haute Mexican-To serve the customers seeking a fine dining experience, Maria opens an upscale, stand-alone, expensive restaurant serving haute cuisine.
b) Joe's Burrito Box-Recognizing an opportunity to sell low-price, no-frills lunches, Joe's Burrito Box sells boxed burrito lunches out of a mobile cart on Main Street.
c) Maria's Taco Stand-First to introduce Mexican food to the market, Maria opens a no-frills taco stand offering budget meals.
d) Maria's Mexican Restaurant-As Maria's Mexican food grows in popularity, Maria opens a restaurant in the local mall. The restaurant offers a wider menu, sit-down dining, and higher prices.
Business
1 answer:
ra1l [238]3 years ago
7 0

Answer:

a) Haute Mexican-To serve the customers seeking a fine dining experience, Maria opens an upscale, stand-alone, expensive restaurant serving haute cuisine.  STAGE 3 - MATURITY PHASE (STRONGLY ESTABLISHED, HIGH PRICE)

b) Joe's Burrito Box-Recognizing an opportunity to sell low-price, no-frills lunches, Joe's Burrito Box sells boxed burrito lunches out of a mobile cart on Main Street.  STAGE 1 - ENTRY PHASE (PENETRATIVE WITH LOW MARGINS)

c) Maria's Taco Stand-First to introduce Mexican food to the market, Maria opens a no-frills taco stand offering budget meals.  STAGE 1 - ENTRY PHASE (PENETRATIVE WITH LOW MARGINS)

d) Maria's Mexican Restaurant-As Maria's Mexican food grows in popularity, Maria opens a restaurant in the local mall. The restaurant offers a wider menu, sit-down dining, and higher prices. STAGE 2 - GROWTH PHASE (SOMEWHAT ESTABLISHED, HIGHER MARGINS)

You might be interested in
Charter bank pays a 5.00% nominal rate on deposits, with monthly compounding. what effective annual rate (eff%) does the bank pa
mel-nik [20]

In order to compute for the effective annual rate, the working equation would be [( 1 + i/n)^n] – 1.   The i corresponds to the nominal rate while n is the number of compounding periods per year which in this case is 12. The answer would be 5.116%.  

6 0
3 years ago
Classify each of the following based on the macroeconomic definitions of saving and investment:1. Saving Investment Kyoko borrow
r-ruslan [8.4K]

Answer

The classification is shown below:

Explanation:

The saving refers to the amount i.e above its consumption expenditure let us take an example if an individual salary is $100,000 and its expenditure assumes $50,000 then it saves $50,000 so the $50,000 is the savings.  While the investment is the amount that is spent to buy some assets in terms of building, machinery, home, etc.

So the classification is presented below:

a. Kyoko borrows money to build a new lab for her engineering firm.  = Investment

b. Rina purchases stock in Nano Speck, a biotech firm.  = saving

c. Musashi takes out a mortgage for a new home in Detroit. = investment

d.Jacques purchases a corporate bond issued by a car company. = saving

6 0
3 years ago
Geoff purchased a life annuity for $4,800 that will provide him $100 monthly payments for as long as he lives. Based on IRS tabl
Brilliant_brown [7]

Answer:

B. $80

Explanation:

The annuity exclusion ratio is ($4,800/($100*240))= 20% return of capital per payment. Hence, $80 of the $100 monthly payment is include in gross income

8 0
3 years ago
Marston Manufacturing Company has two divisions, L and H. Division L is the company’s low-risk division and would have a weighte
uysha [10]

Answer:

Should Marston Manufacturing Company accept or reject the project?

Marston C Company should reject the project because its expected return is lower than Division H's cost of capital.

Since the divisions' risk is so different, and probably their projects are also very different, the company should use different costs of capital to accept of reject the projects based on each division's cost of capital.

Imagine another situation where Division L is evaluating a project that yields 10%. If they used the company's WACC, then they should reject the project, but if they used the division's cost of capital, then they should accept the project (in this case I would recommend accepting it).

Explanation:

Division H's risk = 14%

Division L's risk = 8%

WACC = 11%

3 0
3 years ago
Ifre chapter 1, conceptual multiple
geniusboy [140]

Answer:

Explanation:

When the future revenue producing ability of the inventory is above its original cost the

companies should reports their inventory value with LCNV method.

5 0
3 years ago
Other questions:
  • Privett Company Accounts payable $29,317 Accounts receivable 70,256 Accrued liabilities 6,298 Cash 16,928 Intangible assets 42,4
    13·2 answers
  • A country sells more goods and services to foreign countries than it buys from them. It has Select one: a. a trade surplus and p
    9·1 answer
  • The central space of a basilica-plan church is known as the:
    15·1 answer
  • Beauty Inc. plans to maintain its optimal capital structure of 40 percent debt, 10 percent preferred stock, and 50 percent commo
    13·1 answer
  • During a resuscitation, the team leader assigns team roles and tasks to each member. You recognize that a task has been overlook
    12·1 answer
  • (Last Word) From 2006-2010, the federal government paid $600 million in retirement benefits to deceased federal employees, with
    8·1 answer
  • Compensate for the risk. Delay an action. Reject the risk. Transfer the risk. A squad needs to cross a narrow footbridge across
    8·1 answer
  • A news release for a diet product company reports: There's good news for the 65 million Americans currently on a diet. Its study
    15·1 answer
  • You are considering purchasing stock in Canyon Echo. You feel the company will increase its dividend at 4.7 percent indefinitely
    11·1 answer
  • This is a partial adjusted trial balance of Pharoah Company. PHAROAH COMPANY Adjusted Trial Balance January 31, 2022 Debit Credi
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!