Answer:
The profit maximizing output for a monopolist is the output level where marginal cost is equal to marignal revenue.
Explanation:
Price Q Demanded Marginal Revenue Marginal Cost
$76 100 $76 $25
71 200 66 68
66 300 56 56
61 400 46 82
56 500 36 76
51 600 26 48
Arranging the information in the chart above, we can see that for a quantity demanded of 300 units, and a price of $66, marginal revenue and marginal cost are exactly the same, $56.
Thus, the profit-maximizing level of output is 300 units.
Thought of the Day:
“If everything was perfect, you would never learn and you would never grow.” – Beyoncé
Joke of the Day:
What’s worse than finding a worm in your apple? Finding half a worm.
Random Fact of the Day:
Johnny Cash took only three voice lessons before his teacher advised him to stop taking lessons and to never deviate from his natural voice.
Journal Entry Idea:
What would you do if you were able to communicate with animals?
Answer:
talk to my dog, I think it would be entertaining
Answer:
Thought of the Day:
"People who wonder whether the glass is half empty or half full are missing the point. The glass is REFILLABLE."
Joke of the Day:
Why did the nurse need a red pen at work? In case she needed to draw blood.
Random Fact of the Day:
A giraffe's neck is (ironically) too short to reach the ground..
Journal Entry:
I were able to every communicate with animals, I would try my hardest to win them all over and convince them that they are all loved in the world.
Explanation:
This question was extremely fun! Thank you for posting! :)
Executive Chalk is financed solely by common stock and has 25 million shares outstanding with a market price of $10 a share. It announces that it intends to issue $160 million of debt and use the proceeds to buy back common stock. Assume that the MM assumptions hold (i.e., no taxes, no costs of financial distress). a) What is the value of the firm before and after the proposed capital structure change
Answer: See explanation
Explanation:
First we will have to calculate the value of the firm before the debt issue. This will be:
= 25,000,000 × $10
= $250,000,000
We also calculate the value of the firm after after the proposed capital structure change. The value of equity will be:
= $250,000,000 - $160,000,000
= $90,000,000
Therefore, the value of debt will also be $160,000,000.
Please choose one of following answers that are in quote
What is the opportunity cost in this scenario?
Harry has been very busy at work for the past two weeks. He has been working weekends too. Finally, he is going to get a weekend off. "Originally, he planned to paint his apartment that weekend." "He also considered going fishing for the weekend." "But then his parents called and asked him to come for dinner because it has been a while since they have seen each other."
"Later on, his friend Theo informed him about a surprise birthday party for another friend." Theo plans to reserve a room at a restaurant for the celebration, with the cost to reserve the room split between Theo, Harry, and three other friends.
Now Harry is confused about what he should do over the weekend. He decides that, for him, the most important commitments are going over to his parent's house and attending his friend's birthday party. In the end, Harry decides to see his parents.
Answer:
it would be better to go the his parents house so it would be cheaper, probably around $10
Explanation:
During 2021, its first year of operations, Ashbaugh Industries recorded sales of $21,000,000 and experienced returns of $1,400,000. Returns are accounted for as they occur, with additional estimated returns accrued at the end of the period. Cost of goods sold totaled $12,600,000 (60% of sales). The company estimates that 8% of all sales will be returned. The year-end adjusting journal entry to account for anticipated sales returns would include a:
Answer:
Credit to refund liability of $280,000.
Explanation:
The year end adjusting entry would be
Sales Return $280,000 ($21 million × 8% - $1,400,000)
Refund Liability $280,000
(Being the anticipated sales return is recorded)
Here the sales return is debited as it increased the sales return and the refund liability is credited as it increased the liabilities
The same is to be considered
Mr. Dealer bought a fleet of SUVs (sport utility vehicles) from General Motors (GM) on credit, GM agreeing not to assign the resulting account receivable without Dealer's consent. GM later, without debtor dealer's consent, assigned the account to The Bank of New York (BNY) for consideration. Dealer made payments to BNY, but claimed damages from GM for breach of contract. 1. Could Dealer collect damages from GM
Answer:
Yes, Dealer could collect damages from GM because basically GM breached the contract. Any time a contract is breached, the non-breaching party can sue. But the real question here is what amount could the court assign to Dealer as compensation for damages incurred. If you want to rephrase this question, it would be: What damages did Dealer suffer due to GM's breach.
If the damages are not significant, then the court will probably assign some amount for nominal damages. To be honest, the greatest expenses here are actually the legal costs of the lawsuit. Unless Dealer can prove that assigning the contract actually hurt them (which I doubt), then the court will assign a small amount. Sometimes nominal damages can be very small and mostly symbolic, e.g. $1.
The Dealer could not collect damages from GM because he did not suffer any harm from the assignment of the account receivable.
The Dealer could have refused to pay the Bank of New York and claimed a breach of contract against GM Motors. But it was not a material breach.
Secondly, the sales agreement with GM Motors only required the debtor dealer's consent before the assignment. It did not forbid GM Motors from assigning the account. It does not seem that any penalty was agreed upon for breach of this clause.
Thus, the Debtor Dealer could not collect damages from GM Motors because he cannot substantially prove that GM's action put him in financial loss.
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The Army receives proposals from eight different companies in response to a Request for Proposal (RFP). The Contracting Officer has identified the most highly rated proposals, determined the competitive range, and wants to get the offerors' best and final proposals. What type of information exchange would the Contracting Officer use to get the information needed to allow the offerors to revise their proposals
Answer: Negotiation
Explanation:
The contacting officer would use negotiating method to speak to the different companies. By the time he or she is able to communicate by negotiation, there would be results on what's needed for the final phase of the selection
MacKenzie Corporation currently has 10 million shares of stock outstanding at a price of $40 per share. The company would like to raise money and has announced a rights issue. Every existing shareholder will be sent one right per share of stock that he or she owns. The company plans to require ten rights to purchase one share at a price of $40 per share. How much money will it raise if all rights are exercised
Answer: $40,000,000
Explanation:
There are 10 million shares and the company plans to require ten rights to purchase one share.
Number of shares to be purchased will be;
= 10,000,000/10
= 1,000,000 shares
Shares are to be sold at $40 so;
= 1,000,000 * 40
= $40,000,000
Pacifica Industrial Products Corporation makes two products, Product H and Product L. Product H is expected to sell 40,000 units next year and Product L is expected to sell 8,000 units. A unit of either product requires 0.4 direct labor-hours.
The company's total manufacturing overhead for the year is expected to be $1,632,000.
Required:
1-a. The company currently applies manufacturing overhead to products using direct labor-hours as the allocation base. If this method is followed, how much overhead cost per unit would be applied to each product? Product H Product L Overhead cost per unit
1-b. Compute the total amount of overhead cost that would be applied to each product Product H Product L Total Total overhead cost
2. Management is considering an activity-based costing system and would like to know what impact this change might have on product costs. For purposes of discussion, it has been suggested that all of the manufacturing overhead be treated as a product-level cost. The total manufacturing overhead would be divided in half between the two products, with $816,000 assigned to Product H and $816,000 assigned to Product L If this suggestion is followed, how much overhead cost per unit would be assigned to each product? (Round your answers to 2 decimal places.)
Product H Product L
Overhead cost per unit
Answer:
1a. Product H $16,000
Product L $3,200
1b. Product H $1,360,000
Product L $272,000
Total $1,632,000
2. Product H $20.40
Product L $102.00
Explanation:
1-a. Calculation for how much overhead cost per unit would be applied to each product
Product H Product L
Number of units produced 40,000 8,000( a)
Direct labor-hours per unit (b) 0.40 0.40 (b)
(a) × (b)=Total direct labor-hours 16,000 3,200 Total =$19,200
Therefore Amount of hoverhead cost per unit applied to each product is :
Product H $16,000
Product L $3,200
1-b. Computation for the total amount of overhead cost that would be applied to each product
Product H Product L Total
Manufacturing overhead applied per unit
0.40 DLH per unit × $85.00 per DLH= $34.00 (a)
Number of units produced 40,000 8,000 (b)
(a) × (b)=Total manufacturing overhead applied $1,360,000 $272,000
Total=Product H $1,360,000+Product L $272,000
Total= $1,632,000
Predetermined overhead rate of $ 85.00 per DLH is calculated as:
Total manufacturing overhead $ 1,632,000(a)
Total direct labor-hours 19,200 DLHs(b)
(a) ÷ (b) =Predetermined overhead rate $ 85.00 per DLH
Therefore the total amount of overhead cost that would be applied to each product is :
Product H $1,360,000
Product L $272,000
Total $1,632,000
C. Calculation for how much overhead cost per unit would be assigned to each product
Product H Product L Total
Total manufacturing overhead assigned (a)
$816,000 $816,000 =$1,632,000
Number of units produced (b) 40,000 8,000
(a) ÷ (b) =Manufacturing overhead per unit $20.40 $102.00
Therefore the amount of overhead cost per unit would be assigned to each product is :
Product H $20.40
Product L -$102.00
a weak home currency may not be the perfect solution to correct a balance of trade deficit because
Answer:
foreign companies may reduce the prices of their products to stay competitive.
Annual maintenance cost for a particular section of highway pavement are $3,000.The placement of a new surface would reduce the annual maintenance cost to $400 per year for the first 5 years, and to $800 per year for the next 5 years. After 10 years, the annual maintenance cost would again be $3,000. If the maintenance costs are the only saving, how much investment can be justified for the new surface, by assuming interest at 6%
Answer:
$17,877
Explanation:
initial outlay = ?
net cash flows years 1 to 5 = $3,000 - $400 = $2,600
net cash flows years 6 to 10 = $3,000 - $800 = $2,200
assuming that the discount rate is 6%, we need to determine the maximum amount of initial investment that would result in the NPV = 0
in order to do this we have to calculate the present value of the future cash flows:
PV = $2,600/1.06 + $2,600/1.06² + $2,600/1.06³ + $2,600/1.06⁴ + $2,600/1.06⁵ + $2,200/1.06⁶ + $2,200/1.06⁷ + $2,200/1.06⁸ + $2,200/1.06⁹ + $2,200/1.06¹⁰ = $17,877
that means that the maximum amount that can be invested = $17,877, and that way the NPV = 0
Mighty Safe Fire Alarm is currently buying 60,000 motherboards from MotherBoard, Inc., at a price of $65 per board. Mighty Safe is considering making its own boards. The costs to make the board are as follows: direct materials, $28 per unit; direct labor, $8 per unit; and variable factory overhead, $17 per unit. Fixed costs for the plant would increase by $76,000. Which option should be selected and why
Answer:
It is cheaper to make the units in-house.
Explanation:
Giving the following information:
Buy:
Purchase price= $65
Make:
Direct materials= $28 per unit
Direct labor= $8 per unit
Variable factory overhead= $17 per unit.
Fixed costs for the plant would increase by $76,000.
We need to calculate the total cost for each option. The best option is the one with lower total costs:
Buy:
Total cost= 60,000*65= $3,900,000
Make:
Total cost= 60,000*(28 + 8 + 17) + 76,000
Total cost= 3,180,000 + 76,000
Total cost= $3,256,000
It is cheaper to make the units in-house.
Suppose the credit terms offered to your firm by its suppliers are 2/10, net 30 days. Your firm is not taking discounts, but is paying after 22 days instead of Day 30. You point out that the nominal cost of not taking the discount and paying on Day 30 is approximately 37%. But since your firm is neither taking discounts nor paying on the due date, what is the effective annual percentage cost (not the nominal cost) of its costly trade credit, using a 365-day year
Answer: 63.5%
Explanation:
Assuming 365 days, the effective annual percentage cost is;
= ( 1 + 2%/(100% - 2%) ) ^ ( 365 / (25 - 10 days) ) -1
= 1.634928727 - 1
= 0.6349
= 63.5%
A company had a beginning balance in retained earnings of $43,300. It had net income of $6,300 and declared and paid cash dividends of $5,700 in the current period. The ending balance in retained earnings equals:
R. C. Barker makes purchasing decisions for his company. One product that he buys costs $50 per unit when the order quantity is less than 500. When the quantity ordered is 500 or more, the price per unit drops to $48. The ordering cost is $30 per order and the annual demand is 7,500 units. The holding cost is 10 percent of the purchase cost. If R. C. orders 500 units each time he places an order, what would the total annual holding cost be
Answer:
$1,200
Explanation:
total annual holding cost = average number of units in inventory x annual holding cost per unit
average number of units in inventory = 500 units / 2 = 250 unitsannual holding cost per unit = $48 x 10% = $4.8total annual holding cost = $4.80 x 250 units = $1,200
Total annual holding cost per unit includes all the costs associated to keeping a certain inventory level, e.g. warehouse costs like rent and utilities, salaries of hte employees that work in the warehouse, insurance, etc.
Three years ago, Adrian purchased 430 shares of stock in X Corp. for $70,950. On December 30 of year 4, Adrian sells the 430 shares for $64,070. (Leave no answers blank. Enter zero if applicable. Loss amounts should be indicated with a minus sign.)
a. Assuming Adrian has no other capital gains or losses, how much of the loss is Adrian able to deduct on her year 4 tax return?
Answer:
6,880
Explanation:
A company expects a shortage of raw materials required for production. What kind of factor is influencing its buying decision?
A.
individual
B.
interpersonal
C.
environmental
D.
organizational
Answer:
C.) Enviromental
Explanation:
Got this right on plato
Answer:
C
Explanation: I got it right on edmentum
John (45) and Cynthia (46) are married, and they will file a joint return. During the year, they earned investment income consisting of: $200 interest income from a savings account with their local bank, reported on Form 1099-INT. $350 interest income from a certificate of deposit held with another local bank, reported on Form 1099-INT. $100 in dividends from a savings account with a local credit union, reported on Form 1099-INT. $250 interest income from a U.S. Treasury note, reported on Form 1099-INT. $500 tax-exempt interest income from a municipal bond investment, reported on Form 1099-INT. $1,700 in ordinary dividends from a mutual fund investment, reported on Form 1099-DIV. Complete John and Cynthia's Schedule B (Form 1040), Interest and Ordinary Dividends.
Answer:
Calculation of Net taxable income
Particulars Amount Amount
Interest income from savings interest $200
Interest income from certificate deposit $350
Dividend from saving account with $100
local credit union
Interest income from us treasury note $250
Tax exempt interest from municipality bond $500
Ordinary dividend $1,700
Gross total income $3,100
Income exempt
Dividend from saving account $100
Dividend from treasury note $250
Tax exempt interest from municipality bond $500 $850
Net taxable income $2,250
Bantam company calculated its net income to be $77,600 based on the unadjusted trial balance. The following adjusting entries were then made for: Salaries and wages owed but not yet paid of $795. Interest earned but not received from investments of $755. Prepaid insurance premiums amounting to $555 have expired. Deferred revenue in the amount of $755 has now been earned. Required: Determine the amount of net income (loss) that will be reported after the adjustments are recorded.
Answer:
$77,760
Explanation:
After adjustment items of expenses will be deducted from the Net income, and items of income will be added to the net income.
Item of expenses = unpaid salary + Prepaid insurance (Expired)
Item of income = Interest earned + revenue
Net income after deduction = 77,600 - 795 - 555 + 755 + 755
Net income after deduction = $77,760
Luther Corporation
Consolidated Balance Sheet
December 31, 2006 and 2005 (in $ millions)
Assets Liabilities and Stockholders' Equity
2006 2005 2006 2005
Current Assets Current Liabilities
Cash 63.6 58.5 Accounts payable 87.6 73.5
Accounts receivable55.5 39.6 Notes payable 10.5 9.6
sort term debt
Inventories 45.9 42.9 Current maturities of 39.9 36.9
long-term debt
Other current assets6.0 3.0 Other current liabilities 6.0 12.0
Total current assets 171.0 144.0 Total current liabilities 144.0 132.0
Long-Term Assets Long-Term Liabilities
Land 66.6 62.1 Long-term debt 239.7 168.9
Buildings 109.5 91.5 Capital lease 0 0
obligations------
Equipment 119.1 99.6 Total Debt 239.7 168.9
Less accumulated(56.1) (52.5) Deferred taxes 22.8 22.2
depreciation
Net property, plant, 239.1 200.7 Other long-term liabilities ------
and equipment
Goodwill 60.0 -- Total long-term liabilities 262.5 191.1
Other long-term 63.0 42.0 Total liabilities 406.5 323.1
assets
Total long-term assets362.1 242.7 Stockholders' Equity 126.6 63.6
Total Assets 533.1 386.7 Total liabilities and 533.1 386.720
Stockholders' Equity
Refer to the balance sheet above.What is Luther's net working capital in 2005?
A) $12 million
B) $27 million
C) $39 million
D) $63.6 million
Answer:
A) $12 million
Explanation:
The computation of the working capital for the year 2005 is as follows:
As we know that
Working capital is
= Current assets - current liabilities
= $144 million - $132 million
= $12 million
Hence, the working capital for the year 2005 is $12 million
So the correct option is A
The same is to be considered
Which factor would credit card companies most likely use to determine an
applicant's creditworthiness?
A. Hourly wages
B. Languages spoken
C. Political party
D. Size of family
A factor that credit card companies would most likely use to determine an applicant's creditworthiness is Hourly wages.
Credit card issue
When you apply for a credit card, you’re required to share an array of personal information on your application. This will include details like your name, address, Social Security number and current employment status. You’ll also be asked to list your income on your application, although the type of income card issuers ask for can vary depending on the card issuer.
Determination of hourly wages
Not all credit card issuers will ask for your annual net income. Some may explicitly ask for your gross income. If you are paid an hourly wage, on the other hand, you may need to figure out your gross income using last year’s tax return or by multiplying your gross weekly income by the number of weeks you work within a year.
Thus, A factor that credit card companies would most likely use to determine an applicant's creditworthiness is Hourly wages.
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Calistoga Produce estimates bad debt expense at 0.20% of credit sales. The company reported accounts receivable and allowance for uncollectible accounts of $471,000 and $1,620, respectively, at December 31, 2020. During 2021, Calistoga's credit sales and collections were $327,000 and $308,000, respectively, and $1,740 in accounts receivable were written off. Calistoga's accounts receivable at December 31, 2021, are:
Answer:
$488,260
Explanation:
Calculation for Calistoga's accounts receivable at December 31, 2021
Accounts Receivable 1/1/2021 $471,000
Credit sales$327,000
Less Collections (308,000)
Less Write-offs (1,740)
Accounts Receivable 12/31/2021 $488,260
Therefore Calistoga's accounts receivable at December 31, 2021, are:$488,260
Renn Company acquires land for $56,000 cash. Additional costs are as follows:
Removal of shed $ 300
Filling and grading 1, 500
Salvage value of lumber of shed 120
Broker commission 1, 130
Paving of parking lot 10,000
Closing costs 560
Renn will record the acquisition cost of the land as:____________.
A) $56,000.
B) $57, 690.
C) $59, 610.
D) $59, 370.
Answer:
D) $59, 370.
Explanation:
Calculation for how much Renn will record the
acquisition cost of the land
Cash$56,000
Removal of shed $ 300
Filling and grading 1, 500
Less Salvage value of lumber of shed (120)
Broker commission 1, 130
Closing costs 560
Acquisition cost of Land $59,370
Therefore Renn will record the acquisition cost of the land as:$59, 370
E12.3 (LO 1), AP Cushenberry Corporation had the following transactions. Prepare journal entry and determine effect on cash flows. 1. Sold land (cost $12,000) for $15,000. 2. Issued common stock at par for $20,000. 3. Recorded depreciation on buildings for $17,000. 4. Paid salaries of $9,000. 5. Issued 1,000 shares of $1 par value common stock for equipment worth $8,000. 6. Sold equipment (cost $10,000, accumulated depreciation $7,000) for $1,200.
Answer:
Transaction 1
Cash $15,000 (debit)
Profit and Loss $ 3,000 (credit)
Land $12,000 (credit)
Cash Flow Effect : Increase $15,000
Transaction 2
Cash $20,000 (debit)
Common Stock $20,000 (credit)
Cash Flow Effect : Increase $20,000
Transaction 3
Depreciation Expense $17,000 (debit)
Accumulated Depreciation Expense $17,000 (credit)
Cash Flow Effect : No Change
Transaction 4
Salaries Expenses $9,000 (debit)
Cash $9,000 (credit)
Cash Flow Effect : Decrease $9,000
Transaction 5
Equipment $8,000 (debit)
Common Stock $1,000 (credit)
Paid In Excess of Par $7,000 (credit)
Cash Flow Effect : No Change
Transaction 6
Cash $1,200 (debit)
Accumulated Depreciation $7,000 (debit)
Profit and Loss $1,800 (debit)
Equipment at Cost $10,000 (credit)
Cash Flow Effect : Increase $1,200
Explanation:
All Cash transactions will have an effect on cash flow. Non Cash transactions will not have an effect and these include exchanges of assets and other financial instruments.
You are planning to save for retirement over the next 25 years. To do this, you will invest $820 per month in a stock account and $420 per month in a bond account. The return of the stock account is expected to be 10.2 percent, and the bond account will pay 6.2 percent. When you retire, you will combine your money into an account with a return of 7.2 percent. How much can you withdraw each month from your account assuming a 20-year withdrawal period
Answer:
$10,460
Explanation:
You will contribute 25 x 12 = 300 monthly payments to your savings accounts. In order to determine their future value, we must first determine the effective interest rates:
stock account = 1.102 = (1 + r)¹²
¹²√1.102 = ¹²√(1 + r)¹²1.008127 = 1 + rr = 0.008127 = 0.81% monthly ratebond account = 1.102 = (1 + r)¹²
¹²√1.062 = ¹²√(1 + r)¹²1.0050 = 1 + rr = 0.005 = 0.5% monthly rateIn 25 years, you will have:
stock account = $820 x 1,265.21433 (PV annuity factor, 0.81%, 300 periods) = $1,037,475.75bond account = $420 x 692.99396 (PV annuity factor, 0.5%, 300 periods) = $291,057.46total = $1,328,533.21using the payout annuity formula:
P₀ = [d (1 - (1 + r/x)⁻ⁿˣ)] / (r/x)
P₀ = $1,328,533.21d = monthly withdrawal = ? r = annual interest rate = 0.072 x = number of compounding periods = 12n = number of years = 20$1,328,533.21 = [d (1 - (1 + 0.072/12)⁻²⁴⁰)] / (0.072/12)
$7,971.20 = d (1 - 0.23795)
$7,971.20 = d (0.762)
d = $7,971.20 / 0.762 = $10,460
Solve for the unknown number of years in each of the following (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.):
Present Value Years Interest Rate Future Value
$600 8% $1,393
850 12 2,330
18,800 18 367,247
21,900 14 382,983
Answer:1)10.94years , 2.) 8.90 years 3) 17.96years 4) 21.84years
Explanation:
Using the formula
FV = PV (1 + r)ⁿ
where
PV=present value
r=interest rate
n =number of periods
FV = future value.
Present Value Years Interest Rate Future Value
$600 ? 8% $1,393
850 ? 12 2,330
18,800 ? 18 367,247
21,900 ? 14 382,983
Using FV = PV (1 + r)ⁿ, The number of years can be calculated
FV/PV = (1 + r)ⁿ
FV/PV/ 1+r = eⁿ
In FV/PV / In ( 1+ r) = n
1)
n ( Number of years )=In FV/PV / In ( 1+ r)
=In ( 1,393/600) / In ( 1+ 0.08)
0.84228/0.07696
=10.94years
2.
n ( Number of years )=In FV/PV / In ( 1+ r)
=In (2330/850) / In ( 1+ 0.12)
1.00837625/0.113328685
=8.90 years
3.
n ( Number of years )=In FV/PV / In ( 1+ r)
=In (367,247/ 18,800) / In ( 1+ 0.18)
2.97217778/0.165514438
=17.96years
4.
n ( Number of years )=In FV/PV / In ( 1+ r)
=In ( 382,983/ 21,900) / In ( 1+ 0.14)
2.86150396/0.131028262
=21.84 years
What are the step(s) when using the Sales with Payment customer
workflow?
Answer:
Option (d) is correct
Explanation:
Create Invoice > Receive Payment deposited to the Undeposited Funds account > Create Bank Deposit.
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Brad's Diner is expanding and expects operating cash flows of $32,000 a year for 4 years as a result. This expansion requires $39,000 in new fixed assets. These assets will be worthless at the end of the project. In addition, the project requires $3,000 of net working capital throughout the life of the project. What is the net present value of this expansion project at a required rate of return of 12 percent
Answer: $57,101.73
Explanation:
First find the present value of the cash inflows. The $32,000 is a constant payment so is an annuity. The net working capital will be realized at the end of the project as well.
Present value of cash inflows = (32,000 * Present value interest factor of an annuity, 4 years, 12%) + 3,000/ (1 + 12%)⁴
= (32,000 * 3.0373) + 1,906.55
= $99,101.73
NPV = Present value of inflows - Outflows
= 99,100.15 - (39,000 + 3,000)
= $57,101.73
Suppose the Digby company expands to other markets with good designs, high awareness and easy accessibility, what strategy would they be implementing?
A- Niche cost leader
B- Niche differentiation
C- Broad cost leader
D- Broad differentiation
Answer:
D- Broad differentiation
Explanation:
Differentiation strategies are useful if buyers needs and preferences are too diverse, one can be fully satisfied by standardizing product offering.
A broad differentiation strategy is simply the competitive approach used when buyers' needs and preferences are too different or large to be satisfied by a product that is importantly identical from one seller to the other seller.
is fulfilled if a big scope of buyers find the company's offering more enticing than that of rivals and worth a somewhat higher price. It makes profitability to increase if the higher price the product commands exceeds the added costs of achieving the differentiation.
MANAGING THE HEWLETT-PACK..
William R. Hewlett and David Packard, two organisational leaders who demonstrated
a
Eventually they built a very successful company that now produces more than 10,000
products, such as computers, peripheral equipment, test and measuring instruments, and
handheld calculators. Perhaps even better known than its products is the distinct managerial
style preached and practiced at Hewlett-Packard (HP). It is known as the HP way.
The values of the founders - who withdrew from active management in 1978 - still
permeate the organization. The HP way emphasizes honesty, a strong belief in the value of
people, and customer satisfaction. The managerial style also emphasizes an open-door policy,
which promotes team effort. Informality in personal relationships is illustrated by the use of
first names. Management by objectives is supplemented by what is known as managing by
wandering around. By strolling through the organization, top managers keep in touch with
what is really going on in the company.
This informal organizational climate does not mean that the organization structure has
not changed. Indeed, the organizational changes in the 1980s in response to environmental
changes were quite painful. However, these changes resulted in extraordinary company
growth during the 1980s.
Questions :
1.Is the Hewlett-Packard way of managing creating a climate in which employees are
motivated to contribute to the aims of the organization? What is unique abot the HP way?
2.Would the HP managerial style work in any organization? Why, or why not? What are
the conditions for such a style to work
Answer:
Hewlett-Packard (HP)
1. Yes. The HP way of managing is creating a climate in which employees are motivated to contribute to the organizational goals, aims, and objectives. The HP way encourages informality in personal relationships.
2. The HP managerial style would work in any organization if the organization's culture is developed to accept the style. This implies that if the organization's culture does not promote informality, it may not work.
Explanation:
Every organization develops its own cultural practices to suit its climate and structure. These will detect how the organization achieves its objectives and goals. Some organizations develop very formal structures, while others work better in informal climates. The choice depends on the business strategy that the organizations adopt to pursue their business goals.
Have you ever had your dream crushed before
Answer:
yes but dont let it slip away
Explanation: