The company is deciding whether to drop product line F because it has an operating loss. Assume that $22,000 of total fixed costs could be eliminated by dropping F. What effect would this decision have on operating income?
Momentum Rollerblades has three product lines—D, E, and F. The following information is available:
A) Operating income will increase by $23,000.
B) Operating income will increase by $3000.
C) Operating income will decrease by $23,000.
D) Operating income will decrease by $3000.
B) Operating income will increase by $3000.
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White connotes purity and cleanliness in the West, but it is often associated with death, mourning, and funerals in China and other parts of Asia
Indicate whether the statement is true or false
What is the term for using end caps at the end of each aisle and making use of fixtures, lighting, and color to highlight products?
a. fixed-position layouts b. sight lines c. micro-merchandising d. visual merchandising
Investment A has an expected return of 14% with a standard deviation of 4%, while investment B
has an expected return of 20% with a standard deviation of 9%. Therefore, A) rational investors could pick either A or B, depending on their level of risk aversion. B) a rational investor will pick investment B because the return adjusted for risk (20% - 9%) is higher than the return adjusted for risk for investment A ($14% - 4%). C) a risk averse investor will definitely select investment A because the standard deviation is lower. D) it is irrational for a risk-averse investor to select investment B because its standard deviation is more than twice as big as investment A's, but the return is not twice as big.
The first step in the purchasing cycle is
a. Collecting supplier information b. Conducting an internal assessment c. Developing the sourcing strategy d. Assessing the market