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Daniel [21]
1 year ago
5

Recently, the Polish General Corporation, well-known for manufacturing appliances and automobile parts, initiated a $13 billion

project to produce automobiles. A great deal of learning on the part of management and employees was required. Even though pressure was mounting to get a new product to market in early 2012, the production manager of the newly formed automobile division insisted on almost a year of trial runs before sales started because workers have to do their jobs 60 to 100 times before they can memorize the right sequence. The launch date was set for early 2013. What are the consequences of using this approach to enter the market with a new product?
Business
1 answer:
vladimir1956 [14]1 year ago
5 0

Answer:

Polish General Corporation is a new player in automobile production, their background for manufacturing automobile parts is an advantage as they can insource for parts.

The approach of giving ample time for trials is a good one. It will be a competitive advantage for the company if their products are synonymous with quality.

Their first product in the automobile market place should set a standard on which the company can build a long lasting brand.

So the decision by the manager to prolong trials is a wise one. The employees will also have mastered the process at the end of this period, having practices 60 - 100 times. Based on the expertise learnt products produced in the future will also have high quality.

Explanation:

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a                  Work in process             $ 55,500  

                 Manufacturing plant Overhead   $ 4,500  

                             Materials                                                 $ 60,000  

                     (To record material utilized)  

b                       Work in process               $ 106,800  

                     Manufacturing plant Overhead    $ 8,200  

                               Wages Payable                                 $ 115,000  

                            (To record work utilized)  

c                     Work in process ($106,800*25%) $ 26,700  

                            Manufacturing plant Overhead                  $ 26,700  

                 (To record overhead applied)   $7,750/$31,000=25%  

d                               Finished Goods        $ 122,750

                                     Work in process                                $ 122,750  

                 (To record products finished) ($51,250+$71,500)

7 0
2 years ago
Which statement best describes the role of a credit agency?
tekilochka [14]

Answer:

The statement best describes the role of a credit agency is "It tracks the use of credit for lenders"

3 0
1 year ago
Maggie’s Skunk Removal Corp.’s 2018 income statement listed net sales of $13.8 million, gross profit of $8.70 million, EBIT of $
Margarita [4]

Answer: See explanation

Explanation:

1. Calculate the profit margin

Profit Margin = (Net Income/Net Sales) × 100

Profit Margin = (4,500,000/13,800,000) × 100

Profit Margin = 3.26 × 100

Profit margin = 32.6%

2. Calculate the basic earnings power.

Gross Profit Margin:

= Gross Profit/Net Sales × 100

= (8,700,000/13,800,000) × 100

= 6.304 × 100

= 63.04%

3. Calculate the return on assets.

Return on assets= Net income/Total asset

= 4,500,000/53,800,000

= 0.0836

= 8.36%

4. Calculate the return on equity.

Return on equity = Net income/Equity

= 4,500,000/22,300,000

= 0.2017

= 20.17%

5. Calculate the dividend payout.

Dividend payout = Dividend/Net income

= 2,500,000/4,500,000

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5 0
1 year ago
Starbucks has been in business for over 40 years and for most of that period has been quite successful. They have a portfolio of
Keith_Richards [23]

Answer:

Marketing and distribution of a variety of products

Explanation:

Marketing refers to a business function whereby a marketer advertises and promotes goods and services with an objective to increase sales and at the same time ensure customer satisfaction.  Marketing mix refers to essential marketing components for effective marketing.

Marketing mix comprises of product, place, price and promotion.

Distribution refers to activities which are aimed at making products available in the right markets at the right time and utilizes various channels of distributions such as retailers, wholesalers, intermediaries, etc.

In the given case, Starbucks, the renowned coffee maker, has formed alliances or collaborations so as to extend and strengthen their business. These strategic alliances help Starbucks create an effective distribution network and wide-reach marketing which subsequently helps in efficient operations and profitability.

6 0
1 year ago
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ella [17]

Answer:

Yes they can continue advert but only if the 1% is equivalent or greater than the 10$ spent on advert.

Explanation:

There is an increase in revenue by 1%, this indicates that a number of people were attracted to the product because of the advert. With this the company might do better with consistent advert in subsequent year. They can change the channel of advert, improve on the quality of advert or change the time and location of the advert. Infarct, the 1% increment in revenue can be up to 20$ since we are not sure of the exact company's revenue. But if the 1% is far lower than the amount spent, the company can seek advice from professionals.

4 0
1 year ago
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