The contract that carries the least risk for suppliers is CPPC. In this type of contract the buyer pays the supplier for allowable performance cost and pre-determined percentage based on total cost. The full meaning of CPPC is Cost Plus Percentage of Cost.
Answer:
The correct option is D. integrated cost leadership/differentiation
Explanation:
Integrated cost leadership/differentiation is a business level strategy where differentiated products are offered in market at low cost.
Differentiated product signifies the unique characteristics the customer values and cost leadership signifies that the product is offered at the lower-cost, i.e., at a margin just above average costs.
It is useful in gaining wide customer base especially in a global frontier.
For a competitive retailer to get a consumer's patronage, they should implement strategies of attracting their consumers of which will likely gain their support and make their consumers many than of their competitors. An example of this is by having to offer discounts in means of attracting other consumers to buy their products as a means of having to gain their support.
Answer: a) $18,605
Explanation:
The amount he can borrow today will be an amount that when grown at a rate of 7.5% per year will equal $20,000 in a year.
20,000 = Amount + ( Amount * rate * time)
20,000 = Amount + (7.5% * Amount)
2,000,000 = 1.075 * Amount
Amount = $18,605
Answer:
The Square Box should accept Project B only
Explanation:
Square Box should decide the project whose Net present value (NPV) of future cash inflow is higher than the initial cost of investment
NPV of cash inflow from Project A = 3,000/(1+12%)+7,000/(1+12%)^2+10,000/(1+12%)^3 = $15,377, lower then initial cost of $18,000 → deny Project A
NPV of cash inflow from Project B = 3,000/(1+12%)+7,000/(1+12%)^2+15,000/(1+12%)^3 = $18,936, higher then initial cost of $18,000 → accept Project B
