The introduction is an example of a Product line extension
A marketing tactic known as product line extension leverages an established brand to add a new item to an existing product line. A firm's new product could have minor differences from its existing products in terms of, for example, flavor, color, form, components, or packaging size.
The Gatorade thirst quencher was created in the year 1965, and in the year 2018, its marketers released Gatorade zero, which was a sugar-free drink. Apart from this, Gatorade AM was established in the year 2007, while the Gatorade G Series was introduced in 2010. Throughout, there have been numerous Gatorade products launched to the market, which are examples of product line extensions
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Answer:
$9,600 Financial advantage
Explanation:
Variable Cost per unit for special order = $60 + $40*40%
Variable Cost per unit for special order = $60 + $16
Variable Cost per unit for special order = $76
The financial advantage or disadvantage of accepting the special order = Sales Revenue from special offer - Variable Cost Cost for special offers
= $100*400 units - $76*400 units
= $40,000 - $30,400
= $9,600 Financial advantage (Disadvantage).
Answer:
Machine A = $ 1.22 million
Machine B = $ 0.70 million
Explanation:
The Equivalent Annual Annuity of the machines is as follows
Machine A = $ 1.22 million
Machine B = $ 0.70 million
Thus the Machine A with a higher Equivalent Annual Annuity of $ 1.22 Million is the better machine.
If the company accepted the better machine which is Machine A, the value of the company increases by $ 3.57 Million (Which is the net total of discounted cash Inflows = Net Present value of Machine A)
See attached file for details.
Answer:
a. A company's book value reflects the company's history of equity investment and retained earnings; a company's market value reflects investor's view of the company's future earning prospects.
Explanation:
The book value of a company is the residual equity and retained earnings after all liabilities paid. Market value is the view of investor's about the company and is what the company would be worth if it were to be sold.
