A target service level is the point where the expected cost of a shortage equals the expected cost of having excess units
Indicate whether the statement is true or false.
Answer: TRUE
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Experience-curve pricing assumes that ________
A) competitors are weak and not willing to match price cuts B) competitors are strong and invincible C) aggressive pricing adversely affects product image D) volume-based production slows down organizational learning E) lower-cost technologies are almost always inferior
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.
Another name for business-to-business markets is ________
A) derived markets B) functional markets C) B2C markets D) C2C markets E) organizational markets
What is an in-kind donation?
a. donations of equity or value in a company instead of cash b. noncash donations of products c. giving through a third party instead of directly to those in need d. donations of time and effort instead of cash or products