The decision by Lawry’s to launch its new steak sauce so soon is forcing A.1. Steak Sauce to act promptly in its response since Lawry’s product is 1 ounce larger and the retail price is a full dollar less than what A.1. Steak Sauce runs. One factor A.1. Steak Sauce must keep in mind when choosing a plan of action is the 10% increase in the profit target for 2003.
Alternatively, $499 and $600 are also being considered. As we consider the price for the new guitar, we need to keep in mind that Guitar World will be receiving 40% of the sale price from the wholesalers and retailers. Problem * In order for the new product line to be successful, we will need to calculate the break-even point in both, sales and units. This needs be done for all 3 price ranges, $499, $549 and $600. * We will calculate the net profit for the sales target of 2000 units.
Third, they must have the tricometer patented. Finally, they will incur about $10,000 in other expenses in organizing the corporation. Jean and Joe need to know if they should pay these expenses individually and then assign the trademark, trade name and patent to the corporation. Or, should they first form the corporation and have it pay the expenses out of the money they contribute to it together with their know-how and rights in the tricometer, in
Shipping expenses = $2,247.35 + $1.12X where: X = units shipped c. Shipping expenses = $2,247.35 + ($1.12 x 5,000) = $7,847.35 3 MBA 617 Homework Solutions P14-27 a. Chicken (10 bags x $3/bag) Wages (2
What effect will acceptance of the offer have on net income? 6. Question: (TCO 9) Wishnell Toys can make 1,000 toy robots with the following costs: Direct Materials $70,000 Direct Labor 26,000 Variable Overhead 15,000 Fixed Overhead 15,000 The company can purchase the 1,000 robots externally for $120,000. The avoidable fixed costs are $5,000 if the units are purchased externally. What is the cost savings if the company makes the
What is the inventory cost per unit using variable costing? (Points : 30) Question 5.5. (TCO 8) Musical Instruments Company manufactures two products (trumpets and trombones). Overhead costs ($175,000) have been divided into three cost pools that use the following activity drivers. Product Number of setups Machine hours Packing orders Trumpets 50 1,500 150 Trombones 50 4,500 250 Cost per pool $60,000 $90,000 $25,000 Required (show all calculations) a.
Over the course of years new items would be added to the menu; however the original Chick-fil-A sandwich would always be the leading sandwich. Since 1967 Chick-fil-A has become the second largest quick service restaurant in the United States. Currently, there are over one thousand seven hundred locations in thirty nine states. In 2012 sales reached four point six billion dollars, this was a fourteen percent increase since 2011. Chick-fil-A’s SWOT analysis Strengths *Established in the United States *1700 locations in 39 states *Successful advertising slogan: “Eat morchicken” *Well known for its chicken sandwich and other chicken products.
Rochelle decided to compare two plants for 50 days, Memphis plant-which will have the vector drive and Birmingham plant-which will use the existing system and prepare a report. The financial analysts believe that the purchase can be justified if the equipment leads to the average increase in production of atleast 10,000 bricks per day. Since we have to check whether the difference between the mean value of the bricks per day at Memphis plant and Birmingham plant is greater than 10000(for purchase to be justified), we will use hypothesis testing for means and compare the sampling distribution of the mean value of bricks produced in a day. This method is the typical method to solve these kind of problems. Data available is Plant Total Bricks produced in 50 days S (standard deviation) x̄ (mean) Memphis 7484500 3402.46 149690 Birmingham 6902350 3364.68 138047 Hypothesis test In a hypothesis test we assume Ho to be true and try to find evidence that shows otherwise.
ZOECON CASE ANALYSIS Intro We must analyze the market and each the two main segments, as well as reflect on our test marketing of our product “Strike: ROACH ENDER” before making any rash decisions on whether or not to expand the product from a 4 city test market to 19 cities, and eventually going national. Market-Segments Currently, there are two main segments within the Premise Insecticide Market, the “Consumer” segment and the “Professional Pest Control” segment. Consumer Segment The consumer segment of the market accounted for an estimated $400 million in annual sales in 1985, with a forecasted growth rate of 10% annually through 1990. Market shares broken down by company and products for this segment can be found by referring to table 1 below: Company Product/Brand Market Share S.C. Johnson & Son Raid Brand 45% Boyle-Midway Division of American Home Products Black Flag 12% d-Con Company N/A 10% All Other Companies N/A 8% or less Table Distribution channels within the consumer segment are dominated by supermarkets, which accounted for roughly 70% of insecticide sales, followed by other retailers such as home improvement centers and house and garden outlets at roughly 21%, and drug stores account for roughly 9%. The products offered in this segment come in various forms, as summarized in table 2 below.
Compute the Elasticity for Each Independent Variable Assume the following values for each independent variable. These values will be used to compute the elasticity for each independent variable for the food chain. The first step in computing these equations will be to convert all price values into dollars, then put the values of P, Px, A, I and M in the above equation. QD = - 5200 - 42P + 20PX + 5.2I + .20A + .25M • Q = Quantity demanded of 3-pack units • P (in cents) = Price of the product = 500 cents per 3-pack unit • PX (in cents) = Price of leading competitor’s product = 600 cents per 3-pack unit • I (in dollars) = Per capita income of the standard metropolitan statistical area • (SMSA) in which the supermarkets are located = $5,500 • A (in dollars) = Monthly advertising expenditures = $10,000 • M = Number of microwave ovens sold in the SMSA where the supermarkets are located = 5,000.