Use this information for questions that refer to the World Tennis Ball (WTB) Company case.World Tennis Ball Co. (WTB) makes tennis balls and sells them only in the United States. Raul Fernandez, the firm's marketing manager, is comparing his firm's distribution with two major competitors.1) WTB sells its products through four regional distributors, who then sell to 22 sporting goods wholesalers. The wholesalers sell to a total of 7,000 retail outlets. From its website, WTB also sells directly to any customer who will purchase a minimum quantity of 24 tennis balls. WTB cooperates with members of its channel but maintains some control through its economic power and leadership. It helps to direct the activities of the whole channel and tries to avoid or resolve channel conflicts.2)
American Tennis Ball (ATB) is a competitor that sells through two distributors-each with half the country. The distributors then sell through six sporting goods wholesalers, and they, in turn, sell to 1,000 retail outlets (split between two national sporting goods chains and two general merchandise stores). ATB and its channel make little effort to work together. However, because of a relatively low level of competition between the distributors, the wholesalers, or the retail stores, each member of the channel gives the product special attention.3) National Tennis Ball (NTB) sells its products through only three tennis specialty wholesalers that sell only to tennis clubs. NTB actually owns the wholesale firms that handle its products. NTB's balls are only available at certain tennis clubs and NTB limits coverage to only one club in a particular geographic area.These three tennis ball producers all rely on retailers to reach consumers who want to buy only a few balls at a time. Apparently they all think that this is an efficient way to
A. address discrepancies of quantity.
B. minimize the potential for conflict in the channel.
C. achieve intensive distribution.
D. deal with sorting activities.
E. handle discrepancies of assortment.
Answer: A
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Pagoli Corporation acquires 30% of the outstanding voting common shares of the Inform Corporation for $600,000 . Pagoli Corporation acquires the investment in Inform Corporation by buying previously issued shares of Inform Corporation from other investors. Between the time of the acquisition and the end of Pagoli Corporation's next accounting period, Inform Corporation reports earnings of
$80,000; and pays a dividend of $30,000 to holders of its common stock. Inform Corporation reports earnings of $100,000 and pays dividends of $40,000 during the subsequent accounting period. Pagoli Corporation's Investment in Stock of Inform Corporation account now has a balance of: a. $609,000 b. $621,000 c. $633,000 d. $642,000 e. $657,000
Sanchez Company engaged in the following transactions during Year 1: 1) Started the business by issuing $11,100 of common stock for cash. 2) The company paid cash to purchase $6900 of inventory. 3) The company sold inventory that cost $4300 for $8400 cash. 4) Operating expenses incurred and paid during the year, $3800. Sanchez Company engaged in the following transactions during Year 2: 1) The company paid cash to purchase $9400 of inventory. 2) The company sold inventory that cost $8500 for $15,000 cash. 3) Operating expenses incurred and paid during the year, $4800. Note: Sanchez uses the perpetual inventory system.What is Sanchez's gross margin for Year 2?
A. $5600 B. $1700 C. $6500 D. $8500
For most people, there is really no reason to save for retirement since Social Security will provide retirement benefits until you die
Indicate whether this statement is true or false.
A company has 600 employees. A random sample of 49 employees took a computer literacy test. The sample resulted in a mean score of 75 with a standard deviation of 21
a. Estimate the standard error of the mean. b. Develop an approximate 95% confidence interval for the population mean of the 600 employees.