<span>Lacoste is widely known for its cotton knit shirts. it is perceived to be of superior quality, garners a certain status among its users, and therefore command a premium price. Lacoste therefore has brand protection from competition and price competition.</span>
Answer:
D. $525,000
Explanation:
budgeted production = 15,000 units/month
unit production time required = 30 minutes => 0.5 hours
direct labor rate = $70 per hour
Budgeted cost of direct labor for the month = 15,000 * 0.5 * 70
= $525,000
Answer:
Mark-up = 101.9%
Explanation:
<em>Mark up is the percentage of the product cost that is made as profit. It is profit expressed as a percentage of the product cost.</em>
Mark-up = profit/product cost × 100
Mark-up = $55/54 × 100 =101.85%
Mark-up = 101.9%
Answer: possible options:
A.growth market is to a differentiation-based strategy
B. broadly-defined target market is to a cost leadership strategy
C. growth market is to a cost-based strategy
D. technological innovation is to cost-based strategy
Answer is B
Explanation:
Companies that use a cost leadership strategy and those that use a differentiation strategy share one important characteristic: both groups try to be attractive to customers in general. These efforts to appeal to a broad range of consumers can be contrasted with strategies that involve targeting a relatively narrow niche of potential customers. These latter strategies are known as focus strategies (Porter, 1980).
Focused cost leadership is the first of two focus strategies. A focused cost leadership strategy requires competing based on price to target a NARROW MARKET. A firm that follows this strategy does not necessarily charge the lowest prices in the industry. Instead, it charges low prices relative to other firms that compete within the target market. For example, you might be able to buy milk cheaper by driving to a big-box grocery store in your local community or town, but the local corner store is the cheapest within walking distance. Redbox, a major DVD rental company, uses vending machines placed outside grocery stores and other retail outlets to rent DVDs of movies for $1. There are ways to view movies even cheaper, such as through the flat-fee streaming video subscriptions offered by Netflix. But among firms that rent actual DVDs, Redbox offers unparalleled levels of low price and high convenience.
