Answer:
The company should accept the idea because profit will increase by $24,000.
Explanation:
A company is currently selling 10,000 units of product monthly for $40 per unit.
The unit contribution margin is $27.
The company believes that spending $50,000 per month on advertising will allow them to increase the selling price to $45 and that sales will increase by 750 units per month.
The unit contribution margin is the difference between selling price and variable cost per unit.
An increase in the selling price of $5 will cause the contribution margin to increase by $5, from $27 to $32.
Profits is the product of contribution margin and number of output.
At initial price, the profit was
= 
= $270,000
At the new price the profit will be
= 
- $50,000
= $344,000 - $50,000
= $294,000
The increase in profit
= $294,000 - $270,000
= $24,000
Answer:
The correct answer is a monopolistic competition.
Explanation:
Monopolistic competition is a form of market in which there are a large number of buyers and sellers. The sellers are providing differentiated products which are close substitutes.
There is a high degree of competition in the market. The entry and exit in the market are relatively easier than a monopoly market.
To increase their market share and earn more profits, the firms take the help of branding and advertising.
In the given example, the supermarket chain is operating in monopolistic competition as it has to face a high degree of competition and is using branding, etc to create a niche for itself.
Answer:
B) Making the value of the company increase by generating increasing revenues and profits
Explanation:
The main responsibility of a manager is to increase the company's value in order to increase the wealth of its owners. Of course this should be done in a legal way, e.g. a drug lord that makes millions can't be considered a good businessperson. The responsibility of a manager do not end there, they also have a duty with all the stakeholders of the company, starting with the employees, the government, the environment, their customers, and society as a whole.
Answer:
the type of stores to open
Explanation:
Through GIS, Starbucks has been able to determine ideal locations for its new stores. Also, GIS has helped Starbucks understand the types of stores to open in terms of size, features, etc in those new locations to improve and maintain great customer satisfaction convenience of patronage.
Cheers.
Year end bonuses could be paid only if the business is doing good. The profit margin has to be high in order to give bonuses.
