With the mass-customization approach, a firm tries to find a low-cost way to give individual customers more or better choices.
Answer the following statement true (T) or false (F)
True
With the mass-customization approach, a firm may still focus on certain market segments within a broad product-market. However, in serving individuals within those target segments it tries to get a competitive advantage by finding a low-cost way to give each customer more or better choices.
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When a company has a minority passive investment it will recognize changes in the market value of the investment as ____________________ gains and losses
Fill in the blank(s) with correct word
The Enhanced Products Division of Forrest Industries makes ceramic pots that are used to hold large decorative plants. During the current year, the division produced 10,000 pots and incurred the following costs:
*The equipment was purchased last year for $150,000 and has a current book value of $120,000, remaining useful life of four years, and a zero salvage value. If the equipment is not used to produce ceramic pots, it can be leased for $8,000 per year.**Includes supervisors' salaries and rent for manufacturing plant.Required:1) Assume Evergreen Industries uses a cost plus pricing strategy. What price should be charged for the ceramic pot product if
the division sets its price 40 percent above the unit product cost?2) A potential overseas customer who would not compete with the division's existing customers would like to purchase 1,000 ceramic pots but is not willing to pay the regular price. At what selling price would the division be indifferent about accepting the special order?3) Suppose the division has the opportunity to purchase the ceramic pot from another manufacturer for $60.The supplier is willing to hold sufficient inventories to meet Evergreen's demand. Should the division outsource its ceramic pots? Why or why not? What will be an ideal response?
In the future, robots will do jobs most people would prefer go away.
Answer the following statement true (T) or false (F)
Kim and Mauborgne distinguish between _________________.
a. Red and blue ships b. Red and blue chips c. Red and blue oceans d. Red and blue colours