Answer:
Brief summary of the case:
The case deals about the evolution of kindle by Company A. When the company decided to introduce kindle, its price was $399 in 2007. Company A understood that to be successful against the huge competitors, kindle must be priced low. It must be highly reliable, many features and elegance must be provided in the design of kindle. "Company A- designed kindle in State C where the research and development expertise is available.
Market research firm "IS," estimated that the manufacturing cost of kindle is about $185. The expensive components of the kindle are the display used in the Electronic ink technology and wireless cord. Company A contracted with Country C's company to produce the display. A manufacturer in Continent A produced a wireless cord of $13. Many components were contracted to the different countries to reduce the cost of the kindle to be competitive. Now, kindle became the competitor to the massive companies.
Determine if the company has decided to manufacture all the components of Electronic reader K in Country U:
If Company had decided to manufacture all the components in Country U, then it would have been more expensive. Company A cannot sell that at an affordable price. Increase in the cost of the components would increase the overall cost of the Electronic reader K. The most important strategy of Company A is to minimize the cost of the product to increase the number of sales.
Increase in the manufacturing cost will dilute their competitive advantage and it increases the cost of the product. It will lower the sales and the buyers would prefer to use the competitors' products, which are cheaper.
Determine if the company has decided to manufacture all the components of Tablet F in Country U:
It would be expensive if they decide to manufacture the components in Country U. It will not affect the sales number like Electronic reader K. as Tablet F is multipurpose. People will prefer quality and specifications than price.
Conclusion:
Manufacturing in Country U would be expensive and it increases the overall cost of the product. It would affect sales of the products.
ANSWER – FALSE
When a union bargains successfully with employers, resulting
in increment in total compensation, both the quantity of labor supplied and the
quantity of labor demanded doesn’t increase, rather, the quantity of labor
supplied increases and the quantity of labor demanded decreases.
Answer:
62,200 allowance ending
Explanation:
allownce 5,000 credit
<u>Because the bad debt is calculate over the sales,</u> the bad debt expense is the result of that estimated, without considering the beginning balance of the allowance.
22% of net credit sales will be uncollectible:
260,000 x 22% = 57,200
<u>Now ending balance will be beginning + uncollectible for the period</u>
5,000 beginning
57,200 uncollectible for the period
62,200 allowance ending
Answer:
Too little money
Explanation:
In the given case, David wanted to have all required resources and he also had complete knowledge of it. However he could not get them properly due to his budget constraints which lead to shut down of his business.
This case clearly depicts the problem of too little money as the risk of failure was not mentioned as such. Also the business David was willing to open was not relate to any chemical or defense industry so there was not much regulatory burden.
Answer:
A corporation is a separate entity apart from that of the owners. A corporation is not responsible for its debts if it fails. A corporation is much larger than other kinds of businesses.
Explanation:
