You are a consultant for a very profitable shoe company which has had a lot of success making low-cost shoes for customers who are very price sensitive because they can easily find inexpensive shoes through the company's competitors. The shoe company has a very efficient manufacturing process because they only make seven models of shoes. The CEO does not want to expand to a new customer base but wants to triple the selection of shoes offered to her existing customers. She wants your advice on this idea.
Which of the following arguments should you make to her? (select all that apply)
A. A better idea would be changing the designs of the existing line of shoes to make each more fashionable so they can demand higher prices
B. Since the bargaining power of customers is high, any increase in prices due to expanding the selection of shoes would risk losing customers
C. The CEO's idea may not triple the profitability of the company, but it will certainly lead to higher profit margins
D. The company's ability to manufacture shoes cheaply is likely dependent on a limited product line, so tripling the selection would increase costs
Answers: 2
Business, 22.06.2019 01:00, taee67
Paar corporation bought 100 percent of kimmel, inc., on january 1, 2012. on that date, paar’s equipment (10-year life) has a book value of $420,000 but a fair value of $520,000. kimmel has equipment (10-year life) with a book value of $272,000 but a fair value of $400,000. paar uses the equity method to record its investment in kimmel. on december 31, 2014, paar has equipment with a book value of $294,000 but a fair value of $445,200. kimmel has equipment with a book value of $190,400 but a fair value of $357,000. the consolidated balance for the equipment account as of december 31, 2014 is $574,000. what would be the impact on consolidated balance for the equipment account as of december 31, 2014 if the parent had applied the initial value method rather than the equity method? the balance in the consolidated equipment account cannot be determined for the initial value method using the information given. the consolidated equipment account would have a higher reported balance. the consolidated equipment account would have a lower reported balance. no effect: the method the parent uses is for internal reporting purposes only and has no impact on consolidated totals.
Answers: 2
Business, 22.06.2019 02:30, maxicanofb0011
Based on the supply and demand theory, why do medical doctors earn higher wages than child-care workers?
Answers: 1
Business, 22.06.2019 13:40, ilovecatsomuchlolol
A. j. was a newly hired attorney for idle time gaming, inc. even though he reported directly to the president of the company, a. j. noticed that the president always had time to converse with the director of sales, calling on him to get a pulse on legal/regulatory issues that, as the company attorney, a. j. could have probably handled. a. j. also noted that the hr manager’s administrative assistant was the go-to person for a number of things that would make life easier at work. a. j. was recognizing the culture at idle time gaming.
Answers: 3
You are a consultant for a very profitable shoe company which has had a lot of success making low-co...
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