Celaneo Avionics makes aircraft instrumentation. Its basic navigation radio requires $80 in variable costs and $3000 per month in fixed costs. Celaneo sells 20 radios per month. If the company further processes the radio, to enhance its functionality, it will require an additional $30 per unit of variable costs, plus an increase in fixed costs of $400 per month. The current sales price of the radio is $270. The CEO wishes to improve operating income by $1100 per month by selling the enhanced version of the radio. In order to meet this target, the sales price to be charged for the enhanced product is ________.
A) $300 per unit
B) $375 per unit
C) $105 per unit
D) $380 per unit
B) $375 per unit
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If competitors act in concert but without an explicit agreement, they are engaged in
a. a tying arrangement. b. monopolization. c. reciprocal dealing. d. conscious parallelism.
Which of the following will help a firm accelerate the collection of customers' payments and the conversion of those payments into cash??
A. Lockbox arrangement? B. ?Controlled disbursement accounts C. ?Economic order quantity D. ?Payables concentration E. ?Zero-balance accounts
General Motors has several foreign subsidiaries, and is committed to international business. General Motors operates as a ______________________________.
Fill in the blank(s) with the appropriate word(s).
Once a company has diversified into a collection of related or unrelated businesses and concludes that some strategy adjustments are needed, which one of the following is not one of the main strategy options that a company can pursue?
A. Stick closely with the existing business lineup B. Restructure the company's business lineup C. Craft new initiatives to build/enhance the company's reputation D. Divest some businesses and retrench to a narrower diversification base E. Broaden the diversification base