In an EOQ model, as the ordering cost for an item decreases, the EOQ for the item ________
Fill in the blanks with correct word
decreases
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Value Electronics uses a standard part in the manufacture of different types of radios. The total cost of producing 24,000 parts is $90,000, which includes fixed costs of $30,000 and variable costs of $60,000. The company can buy this part from an external supplier for $5 per unit and avoid 10% of the fixed costs. If Value Electronics decides to outsource the production of the part, how will it impact its operating income?
A) Operating income increases by $57,000. B) Operating income decreases by $57,000. C) Operating income increases by $60,000. D) Operating income decreases by $60,000.
________ refers to a company's estimate of the number of consumers who are willing and able to pay for a product
A) The market segment B) Potential demand C) Return on marketing investment D) The marketing mix E) The mass market
Zara is a women's clothing retailer headquartered in Spain, with stores located in many countries. Zara has developed a "quick response" system that allows store merchandise to be adjusted rapidly to fit changing customer preferences. Every aspect of Zara's operation is optimized for this system, making it difficult for competitors like The Gap to duplicate. Zara has established
A. locational excellence. B. a sustainable competitive advantage. C. customer loyalty. D. a related diversification opportunity. E. a diversification growth strategy.
The principle of risk-return trade-off means that
A) higher risk investments must earn higher returns. B) an investor who takes more risk will earn a higher return. C) an investor who bought stock in a small corporation five years ago has more money than an investor who bought U.S. Treasury bonds five years ago. D) a rational investor will only take on higher risk if he expects a higher return.