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Flauer [41]
2 years ago
8

Bonnie manages the distribution network for her company, which manufactures mountain bikes. Her company’s bikes are sold across

multiple countries. The mountain bikes have to be distributed through many outlets across these countries. What kind of distribution channel should Bonnie incorporate for her company?
A. a centralized distribution channel
B. a long distribution channel
C. a direct distribution channel
D. a short distribution channel
Business
1 answer:
valentina_108 [34]2 years ago
5 0

A long distribution channel Bonnie should incorporate for her company

Option B

<u>Explanation: </u>

A distribution channel is an organization or intermediary network that moves a product or a service until it meets the last customer. Wholesalers, dealers, suppliers and even Web can be part of the distribution channels.

In long channels, product flows from producers to final customers are carried out via multiple levels of distribution in which each level is generally made up of more than one location.

In general distribution channels are divided into two systems which are: direct customer shipping and indirect shipping, which involves an intermediary level or two, including distributor/retailer warehouses in which goods from those intermediaries can be delivered to consumers differently.

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Company XYZ has 2 fixed price contracts for 2 different clients. The company has enough capacity for both contracts but is uncer
frozen [14]

Answer:

<em>The contract A yields a loss under ABC but Contract B yields a profit.</em>

<em>ABC Profit  contract A  $ (3000) contract B  $ 11250</em>

<em>Under absorption costing both contract yield profits.</em>

<em>Absorption Profit    contract A  $ 3250 contract B    $7500   </em><em> </em>

<em>Management should make decisions using ABC and reject Contract A and accept Contract B.</em>

<em></em>

Explanation:

Customer                         AAA               BBB

Component Type           A999                B999

Contract Value ($)       $27,000            $100,000

Contract Quantity         1,000 unit        2,000 unit

Material cost/unit              $15                        $20

Molding time/batch          5 hours            7.5 hours

Batch size                       100 units                50 units

Activity Based Rate= Cost per Unit of Cost Driver

Activity                Cost driver         Cost                 Rate

Molding                2,000              $150,000        $150,000 / 2,000 = 75

Inspection            150                   $75,000        $75,000/150 = 500

<u>Production             20                 $125,000        $125,000/20=  6250         </u>

<u>Total                                             $ 350,000                                           </u>

<u />

<u>Cost Drivers Consumed</u>

<u>Activity</u>                              A999                                      B999

Molding time/batch          5 hours* 10                    7.5 hours *40

                                            50                                   300

Batch size              1,000 unit/ 100 units          2,000 unit/50 units

                                     = 10                                      =40

ABC  Profits for Each Contract

                                         A999                                      B999

Selling Price                  $27,000                              $100,000

Materials                      15*1000                                  20 * 2000  

                                    =   15000                                   =   40,000

Molding                   50 hours *75                               300* 75

                                    3750                                       22500

Inspection             10 batches *500                       40 batches *500

                                 $ 5000                                    $ 20000

Management Contracts    $ 6250                             $ 6250

<u>Total                            $ 30,000                               $ 88,750</u>

<u>Profit                            $ (3000)                                $ 11250</u>

<u></u>

<u>Overhead Rate  Absorption Costing</u>

Total Overheads= ( 150,000 + 125,000+ 75000) = $ 350000

Annual Molding Hours = 2000

<u>Rate= $ 350,000/2000=$ 175 per molding hour</u>

<u></u>

<u>Absorption Costing </u>

<u>Profit For each Contract</u>

<u></u>

                                         A999                                      B999

Selling Price                  $27,000                              $100,000

Materials                      15*1000                                  20 * 2000  

                                    =   15000                                   =   40,000

Overheads                50 hours *175                           300 Hours *175

                               =  8750                                            = 52,500

<u>Total Cost                    23750                                      92500            </u>

<u>Profit                             3250                                            7500         </u>

<u></u>

<em>The contract A yields a loss under ABC but Contract B yields a profit.</em>

<em>Under absorption costing both contract yield profits.</em>

<em>Management should make decisions using ABC and reject Contract A and accept Contract B.</em>

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When an athletic director at state university evaluates how much time a coach spends with the team, the coach's ethical impact o
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I believe the correct answer is job performance.
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3 0
2 years ago
At the beginning of the period, a company reported $100,000 of common stock, $10 par; and $50,000 paid-in capital in excess of p
Romashka-Z-Leto [24]

Answer:

$50,000

Explanation:

To calculate the amount of cash that the company received from selling common stock during the year 2 we can use the following formula:

cash received = (common stock year 2 - common stock year 1) + (paid in capital in excess of par year 2 - paid in capital in excess of par year 1) =  

cash received = ($110,000 - $100,000) + ($90,000 - $50,000) = $10,000 + $40,000 = $50,000

3 0
2 years ago
Suppose that the demand equation for Bobby Dolls is given by q = 216 – p2, where p is the price per doll in dollars and q is the
NikAS [45]

Answer:

P.Ed at p = 5 :- 0.26

Revenue maximising price = 8.5 ; Maximum Total Revenue = 1222

Explanation:

Price Elasticity of Demand shows responsive change in demand, due to change in price.  P.Ed = ( dq / dp ) x ( p / q )

q = 216 - p^2

dq / dp = - 2p  

P.Ed = dq / dp x ( p / q )  

So, PEd = ( -2p ) x ( p / q )

[ (- 2p) (p) ] / [ 216 - p^2 ]

(- 2p^2 ) / ( 216 - p^2 )

Putting value of P = 5 in P.Ed

<u>- 2(25) </u>

216 - 25

= - 50 / 191

P.Ed = 0.26

Revenue is the total value of receipts from sale of goods & services. TR = p x q

q = 216 - p^2

TR = 216p - p^3

To find price maximising TR , we will derivate TR function with respect to 'p'  

d TR / d p = 216 - 3p^2  

d TR / d p = 216 - 3p^2   = 0

3p^2 = 216

p^2 = 216 / 3

p^2 = 72

p = √ 72

p = 8.5

Finding maximum revenue ; Putting price = 8.5 in TR function

TR = 216p - p^3

216 (8.5) - (8.5)^3

1836 - 614

1222

7 0
2 years ago
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