A company could increase the perceived benefits of a product by ________
A) reducing the purchase price
B) adding a desirable new feature to the product without increasing the purchase price
C) reducing the operating costs associated with the product
D) removing the warranty offered with the product
E) adding maintenance costs associated with owning the product
B
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he Cold Experience, Inc., a leading manufacturer of frozen dessert products, is considering the addition of a new product: frozen yogurt. The firm estimates that each cup will sell for $2 and that the variable costs per cup will be 70% of the selling price. The firm expects to sell at least 10M cups the first year and that the marginal tax rate will be 40%. The firm wants to maintain its current degree of financial leverage of 1.5 and a maximum degree of combined leverage of 4.5. The firm expects to pay $300,000 in preferred dividends and has 1 million shares of common stock outstanding.
a) Create an income statement for the new frozen yogurt’s first year using the information provided. b) Determine the operating break-even point in units and also in dollars. c) How many cups would The Cold Experience, Inc. need to sell in order to achieve earnings before interest and taxes of $3M?
Which of the following are statements discussed in the text regarding stories?
A. People try to understand complex events in simply. B. Stories do not help with comprehension. C. Stories told by charitable organizations are typically devoid of emotion. D. Stories convey meanings and values representing the organizational culture and guide behavior.
Which statement concerning customer service is correct?
a. Customer service only concerns a retailer's intangible activities. b. Different people almost always judge a retailer's customer service in a similar manner. c. People's assessment of customer service depends on perceptions—not necessarily reality. d. Customer service only concerns a retailer's tangible activities.
Diamond Plywood, Inc., manufactures four types of plywood panels. Each product must go through the following operations: patching, grading, gluing, and baking. The time in hours required for each operation for each panel, the total capacity available for each of these operations in a given month, as well as the minimum production requirements and the profit contributions per panel are given in the following table. Based on this information, at the optimal production point what is the quantity of hardwood plywood panels that Diamond Plywood will produce?
A. 1,050
B. 840
C. 925
D. 150