Answer:
c. When ordering or setup costs increase, Economic Order Quantity increases
Explanation:
In inventory there are two types of review systems used to replenish stock, the periodic inventory and continuous inventory.
Continuous inventory involves ordering the same quantity of a good in each order. However the rate at which goods are replenished varies based on monitoring of level of goods. Orders are made when inventory gets to a certain level.
In this instance when there is an increase in ordering or setup there needs to be allocation of a higher amount for orders. The additional cost is added to the economic order quantity
Answer:
<u><em>15.63%</em></u>
Explanation:
The answer is simply calculated by putting a simple formula in place.
The formula is, P = D/(r-g)
Hence, applying the formula, we have the following values,
P: 40 , D: 4.25 , g: 0.05 & r: ?
Step 1: 40 = 4.25/(r-0.05)
Step 2: r = (4.25/40)+0.05
Hence the cost of equity is = 15.63%
Thankyou.
Answer:
1. Companies like P&G have their customer base consisting on end customers whose choice of toothpaste and towels which can change depending on multiple influencers like cost, other attractive features in competitors, freebies etc. Thus a strong customer focus and reach is essential to even retain the current customer base. Thus these companies need to focus on advertising to remain competitive in the current market atmosphere.
2. The numbers of advertising companies can be appropriately engaged based on cost and effectiveness as long as there are sufficient companies customizing the advertising and marketing efforts for the region in focus. If there are too many agencies running the advertising, the cost could be very high. If the number of agencies are decreased to too low and same advertising efforts are used in different type of demographic regions, the impact and effectiveness of the advertising could be less and not as effective as required. Thus choosing the sufficient number of agencies to reach all the required demographic regions is essential to balance the cost and effectiveness of advertising.
3. Innovation will always be rewarded in the current market atmosphere. If we look at the current market position of P&G, seeing that the they are currently placed in a good position with good presence in multiple products for different customer segments. Thus after studying the market and weighing all the aspects, it could make sense for P&G to consolidate and cut the less profitable businesses.
Any of the methods is an attempt to arrive at a profit
maximizing price. This likely occurs when there is a producing quantity in
regards of the output in which there is an equality with both of the marginal
revenue and the marginal costs.
