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2 years ago

Perhaps the greatest risk for a company that chooses to pursue an integrated low cost/differentiation strategy is that it will

1 answer:

6 0

The greatest risk of a low-cost provider strategy is getting lost with overly high price reduction and ending up with lower profit.

<h3>Low-cost / low-price advantage </h3>

It results in high profit only if;

(1) prices are reduced by less than the size of the cost advantage or
(2) the added volume is large enough to bring in a bigger total profit despite lower margins per unit sold.

Therefore, the greatest risk is a low profit.

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Golden Eagle Company prepares monthly financial statements for its bank. The November 30 and December 31 adjusted trial balances

denis23 [38]

Answer:

Explanation:

The adjusting entries are shown below:

1. Supplies Expense A/c Dr $3,000 ($2,000 + $4,500 - $3,500)

To Supplies A/c $3,000

(Being supplies purchased)

2. Insurance Expense A/c Dr $2,000

To Prepaid Insurance A/c $2,000

(Being prepaid insurance adjusted)

3. Salary expense A/c Dr $16,000

To salary payable A/c $16,000

(Being salary adjusted)

4. Unearned revenue A/c Dr $1,500

To Service revenue A/c $1,500

(Being unearned revenue adjusted)

7 0

4 years ago

Your firm is considering opening a branch office in Kyle. The office would cost $485,000 to build the office. During the office

wariber [46]

Answer:

The NPV from opening the branch office is negative ( -$106668.08). Thus the branch office should not be opened.

Explanation:

The decision to open the branch office will be taken based on the NPV provided by opening of the branch office. If the NPV of a project is positive based on the required rate of return used as a discount rate fro cash flows, the investment is worth undertaking.

The net present value (NPV) for a project can be calculated as,

NPV = CF1 / (1+r) + CF2 / (1+r)² + ... + CFn / (1+r)^n - Initial Outlay

Where,

r is the appropriate discount rate
Initial Outlay is the Initial cost of the project
CF represents cash flows from the project

As the required return is 16%, we will take this as the appropriate discount rate.

NPV = 45000 / (1+0.16) + 120000 / (1+0.16)² + 150000 / (1+0.16)³ +

150000 / (1+0.16)^4 + 150000 / (1+0.16)^5 - 485000

NPV = - $106668.08

As the NPV from project is negative at a required return of 16%, the project should not be under taken and the branch office should not be open.

7 0

3 years ago

Barry has a medical plan with a $1,200 deductible, 20% coinsurance, and a $5,000 coinsurance cap. His allowable medical expenses

Trava [24]

Based on his deductible and coinsurance cap, the amount that Barry will pay is <u>$4,560.</u>

<h3>Amount Barry will pay </h3>

Barry will have to pay the entire deductible of $1,200. The expenses that are left will then be shared between him and the insurer in a 20% - 80% ratio but he will not pay more than $5,000.

Total he will pay out of pocket is therefore:

= Deductible + ( 20% x (Medical expenses - deductible))

Solving gives:

= 1,200 + ( 20% x (18,000 - 1,200))

= $4,560

In conclusion, he will pay $4,560.

Find out more on insurance payments at brainly.com/question/25973180.

4 0

2 years ago

Salon Du Jour offers special combination packages at a reduced price. Separately, a haircut is $30 and a conditioning treatment

Andreas93 [3]

Answer:

product bundle

Explanation:

Product bundling is a sales promotion strategy that involves marketers offer a discount on two or more items sold together as a single item. Complementary goods, or similar items are packaged and offered to consumers. Product bundling is also called package deals.

Product bundling may be targeted to a particular item on the bundle or both. Due to the discount offered, product bundling increases the revenues from the products on offer. It also can increase the market share for each of the products on offer. In this case, a haircut and a conditioning treatment are complementary services. Bundling them together encourages consumption for both.

7 0

4 years ago

In setting a product's , a business needs to take into account the costs of producing, distributing, and promoting the product a

Illusion [34]

When setting the price of a product, a company needs to take into account the costs of producing, distributing and promoting the product, as well as a profit margin.

<h3>How to set the product price correctly?</h3>

It is essential that the company align its needs and objectives with the characteristics of the market and its business, in order to define a compatible and competitive price. It is essential to analyze income and expenses to establish an optimal balance in the pricing process, revising the strategy whenever necessary.

Therefore, it is essential that pricing is aligned to the market, to the fixed and variable costs of the business, considering its needs and goals for the business to be well positioned in the market.

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4 0

2 years ago