Answer:
A. expose customers to high-margin items.
Explanation:
Retail layout refers to how retailers organize the shelf space and allocate all the products in a way that allows them to influence customer decisions. The objectives of the layout include creating a good customer experience and allowing customers to access easily the products with higher margins to generate more value for the company. According to this, the answer is that a key objective for a retail layout is to expose customers to high-margin items.
Answer: B. redeploying and recombining existing core competencies to compete in future
Explanation: Motor craft inc core competence is in fuel efficient engine but realizing that there is a new market opportunity to diversify, it then "redeployed and recombined existing core competencies to compete in future". By producing car engines in large scale and selling it to other automobile companies.
Answer:
The company should make the components because incremental costs are $2 less than the purchase price
Explanation:
The cost of making each unit of component = Direct Labour + Direct Material + Variable Overhead*
*The overhead cost of $4 contains both a fixed and variable element. It has been mentioned that 25% of overhead cost is incremental i.e. it increases with each additional unit produced (marginal cost). The incremental cost is the variable element.
Variable element = $4 x 25% = $1
Fixed element = $4 x 75% = $3
Thus, the cost of making each unit of component = $5 + $2 + $1 = $8,
whereas the cost of purchasing each unit of complement is $10. Hence, the company should produce the component as it is less by $2 ($10 - $8) to produce than it is to purchase.
Answer: $117,000
Explanation:
So we are to calculate the Raw Materials purchased during the year.
Logically speaking the following should hold,
Raw materials purchased during the year + beginning raw materials = ending Raw materials + Raw materials used
Agreeing on that and rearranging the formula we will have,
Raw Material purchased during the year = Raw Material used during the year + Ending Raw Material Inventory - Opening Raw Material Inventory
Slotting in the figures we will then have,
Raw Material purchased during the year = 114,000 + 56,000 - 53,000
= $117,000
Raw materials purchased during the year amount to $117,000.
Answer: The options are given below:
A) Dogs
B) Question marks
C) Stars
D) Cash cows
The correct option is D. Cash cows.
Explanation:
Products that are in slow-growing markets, but for which the company has a relatively large market share are considered Cash Cows, and it is expected of the company to milk the cash cow for as long as it can.
Cash cows, are typically leading products in markets that are mature.
Generally, a product that is designated as a Cash Cow will generate returns that are higher than the market's growth rate and sustain itself from a cash flow perspective.
The product should be taken advantage of for as long as possible. The value of cash cows can be calculated easily because their cash flow patterns are highly predictable.
In summary therefore, low-growth, high-share Cash Cows should be continuously milked for cash in order to reinvest in high-growth, high-share Stars that have a high future potential.
