Answer:
True.
Explanation:
Price changes no more frequent than once a quarter is a true statement.
Answer:
Diamond Computer Company
The company should make (Alternative 1) the cases.
Explanation:
a) Data and Calculations:
Purchase price of portable computer cases = $59 per unit
Alternative 1: Make
Direct materials $35.00
Direct labor 18.00
Variable overhead 2.70 (15% of $18.00)
Total variable cost $55.70
Alternative 2: Buy
Purchase price = $59
b) A make or buy decision is determined by preparing a differential analysis. The differential or incremental analysis evaluates the changes in revenues, costs, and profits resulting from Diamond's decision to make or purchase the computer carrying cases.
The Ducati company's positioning would likely be failing in strategic differentiation.
<h3>What is strategic differentiation?</h3>
It is an area of marketing where companies develop products and services with unique benefits in the market, increasing the value of their brand and positioning in the market, generating a competitive advantage over their competitors.
Therefore, Ducati motorcycles have their own characteristics developed to generate brand differentiation value.
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Answer:
a. rise; rise
Explanation:
When demand is increased the demand curve shift to the right. In the short run supply curve has not adjusted so it will intersect demand curved at new equilibrium point with higher price and higher quantity (price)
The Profit margin that must be achieved is 12.74%.
<h3 /><h3>Profit margin </h3>
First step
Return on equity= Growth rate /(1 + Growth rate) × Retention ratio
Return on equity=12.8% / (1 + 12.8%) × (100%-40%)
Return on equity= 0.128/(1 +0.128) × 0.60
Return on equity= 0.128/1.128 × 0.60
Return on equity= 0.128/0.6768×100
Return on equity= 18.91%
Second step
Now the profit margin is:
Profit margin= ROE / Asset turnover × Equity Multiplier
Profit margin= 18.91% / {(1/.94) × 1.4}
Profit margin= 0.1891 / 1.06 × 1.4
Profit margin= 12.74%
Inconclusion the Profit margin that must be achieved is 12.74%.
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