) Is it possible for your company to operate at a loss in the short run? 2) Assess your company’s ability to adjust to changing market condition
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For the company “Cardinal Health”
1) Is it possible for your company to operate at a loss in the short run?
2) Assess your company’s ability to adjust to changing market conditions.
Step by step
Solved in 4 steps
- Will the long-run customer relationship and sales gains from the promotion justify its costs?You own a toy store located in large suburban mall. Your landlord has raised your rent by 10%. In response, you decide to raise your prices on all of your toys in order to offset the increased cost of rent and maintain your profitability. Under what circumstances would this be a good idea? Explain.The demand for John Cena figures is P = 18 - Q. The figures will cost $4 to order. To stock Cena figures, other figures from the shelves will have to be removed and the average profit on those figures is $2. At what price should you sell the Cena figures for? Enter as a value.
- Sarah is planning to start her own cake shop. The cost of making a cake is RM13 each and they are sold at RM45 each. Her estimated monthly cost includes rent (RM1,200) and utilities (RM500). a. Calculate the price markup percentage. b. Determine the break-even point for Sarah. c. How much sales revenue must Sarah make to achieve break-even point? d. If Sarah wants to achieve an annual profit of RM150,000, how many cakes must she sell each month? e. Sarah wants to provide each cake with a packaging box at extra cost of RM2.00 per unit. If she does this, determine the annual sales unit to achieve his annual profit. ,How can a manager earn profit by exploiting market inefficiencies? What are some common tactics?The owner of a small pizzeria is deciding whether to increase the radius of delivery by one mile. What considerations must be taken into account if such a decision is to increase profitability?
- You own a business that operates in perfect competition, and the market price of the product is $15 per unit. Q is the number of units for production. Your costs of production are shown below. The time period is fixed at one month All revenues and costs are calculated at the monthly rate. A. determine the number of units that you will select. Justify and support your answer using the information on this problem. Select only whole numbers of Q B. calculate the profit that will be earned in Part A. Q FC VC MC TC AFC AVC ATC 0 $40.00 $0.00 xxx $40.00 xxx xxx xxx 1 $40.00 $30.00 $30.00 $70.00 $40.00 $30.00 $70.00 2 $40.00 $44.00 $14.00 $84.00 $20.00 $22.00 $42.00 3 $40.00 $60.00 $16.00 $100.00 $13.33 $20.00 $33.33 4 $40.00 $80.00 $20.00 $120.00 $10.00 $20.00 $30.00 5 $40.00 $110.00 $30.00 $150.00 $8.00 $22.00 $30.00 6 $40.00…The anticipated retail price of a stationary bike is $195 and the initial markup is 56 percent. Calculate the merchandise cost.Aji owns a rental space in New York and is thinking of opening a restaurant in that space. An accountant looks at the estimated out of pocket costs and expected revenues. He informs Aji that the restaurant will make profits. But Aji's economist friend tells her that the restaurant business is not likely to be profitable. Both the accountant and the economist can be correct. True False
- Demand for an item is constant at 40 units a week, and the economic order quantity is calculated to be 100 units. What is the reorder level if lead time is constant at 4 weeks? What is the effect of adding some margin of safety and raising the reorder level by ten units? What happens if the lead time (a) falls to 2 weeks or (b) rises to 6 weeks?You have just been hired by a forestry company as a consultant. The company wishes to know whether increasing or decreasing A-grade log prices will increase revenue. What information do you need? Suppose you have been given this information, what would you recommend?It refers to the factor or consideration exhibited by a company, service, product or brand as the reason that one product or service is different from and better than the others and that enables it to stand out from competitors.