Direct marketers can be divided into two categories: _____ and _____
a. general; specialty
b. mail; phone order
c. low-end; high-end
d. store; nonstore-based
a
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If the length of a product's downtime increases, the cost incurred decreases
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The Employee Polygraph Protection Act of 1988 prohibits most private employers from doing all of the following except
a. requiring or causing employees or job applicants to take lie-detector tests. b. using, accepting, or referring to, or asking about the results of lie-detector tests taken by employees or applicants. c. taking or threatening negative employment-related action against employees or applicants based on results of lie-detector tests. d. using lie-detector tests to investigate losses due to theft.
If whistleblowers do not have internal avenues for dealing with issues, they will quit or turn to external avenues
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Allred Furniture manufactures easy-to-assemble wooden furniture for home and office. The firm is considering modification of a bookcase, and the company's marketing department surveyed potential buyers regarding five proposed changes (A-E). The buyers' responses, in order of preference, along with Allred's related unit costs for the modifications, follow.Order of PreferenceChangeCost1A$7.502D5.003B4.004C1.505E5.50The bookcase currently costs $81 to produce and distribute, and Allred's selling price for this unit averages $108. An analysis of competitive products in the marketplace revealed a variety of features, with some models having all of the changes that Allred is considering and other models having only a few. The current manufacturers' selling prices on these bookcases average
$120.Required:A. Why is there a need in target costing to (a) focus on the customer and (b) have a marketing team become involved with product design?B. Management desires to earn approximately the same rate of profit on sales that is being earned with the current design.1. If Allred uses target costing and desires to meet the current competitive selling price, what is the maximum cost of the modified bookcase?2. Which of the modifications should Allred consider?C. Assume that Allred wanted to add a modification or two that you excluded in your answer to requirement "B2." What process might management adopt to allow the company to make its target profit for the bookcase? Briefly explain. What will be an ideal response?