Your company manufactures travel bags and is keen on establishing its presence in the Indian market. If you were given the responsibility to decide the pricing strategy the company should use, what would you decide? Explain your answer
What will be an ideal response?
Student answers will vary. However, they must bear in mind that India is an emerging country and presents its unique set of opportunities and challenges. Hence, strategies that have yielded impressive results in the United States may not be as successful in India. Targeting the affluent middle-class and the rich upper class, the company needs to know how competing products are priced in India. The best way forward would be to use a cost-based pricing strategy. This is because, if the distribution network is long and not as efficient, then it can add to the cost of making the product available to the consumer. However, a cost-based strategy would work well only if the company can ensure competitive prices even after accounting for higher distribution costs.
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In designing an international organization, it is essential that the structures and systems being implemented are not merely consistent with each other, but also consistent with the ___________________ and _________________________.
What will be an ideal response?
Triangle Catering assigns overhead to specific jobs based on direct labor hours. At the beginning of the current year, estimated overhead costs were $650,000 and estimated direct labor hours were 50,000. By the end of the year, actual overhead costs
were calculated to be $685,000 and actual direct labor hours were 55,000. Required: A. Calculate the predetermined overhead rate. B. How much overhead would be applied to a particular catering job that required 45 direct labor hours? C. How much total overhead was applied during the year? D. By how much was overhead over- or underapplied for the year? Be sure to indicate whether it was over- or underapplied.
Riverboat Adventures pays $310,000 plus $15,000 in closing costs to buy out a competitor. The real estate consists of land appraised at $35,000, a building appraised at $105,000, and paddleboats appraised at $210,000. Compute the cost that should be allocated to the land.
A. $93,000. B. $97,500. C. $31,000. D. $32,500. E. $140,000.