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qaws
1 month ago
13

In Porter's Five Forces model, conditions under which a supplier group can be powerful include all the following except:

Business
1 answer:
Scilla [3.5K]1 month ago
7 0

Answer:

D) readily available substitute products.

Clarification:

Porter's five forces cover the following aspects

  1. Threat of new entrants
  2. Supplier bargaining power
  3. Buyer bargaining power
  4. Substitution threats

A) low significance of the buyer to the supplier group.

True. Buyers possess less bargaining leverage when compared to suppliers.

B) significant differentiation by suppliers.

True. Greater differentiation offers a competitive edge and promotes market rivalry.

C) control exerted by a small number of suppliers.

True. This falls under the threat of new entries since a limited number of suppliers create barriers such as capital and licensing needs to deter new competitors.

D) readily available substitute products.

False. This suggests an abundance of suppliers ready to provide alternatives, weakening supplier power.

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A company has retained earnings of $94,000 as of December 31, 2014. The Pro-forma income statement projects net income of $22,00
marusya05 [3422]

Answer:

$46,000.

Explanation:

To determine the retained earnings as of the end of 2015, we must first assess the total dividend that will be distributed to shareholders, and then combine the net income from 2015 with the leftover retained earnings from the conclusion of 2014 (after the distribution of 2014's dividend in March 2015) to arrive at the retained earnings figure for the close of 2015.

Total dividend on March 2015 = 0.7 x 100,000 = 70,000

Retained Earnings as of the end of 2015 = 94,000 - 70,000 + 22,000 = 46,000.

5 0
17 days ago
Why can the big candy makers produce candy that is less expensive per price?
Katen [3201]
Since many individuals purchase their items, they can generate enough revenue to remain profitable, even while offering lower prices.
8 0
20 days ago
Ehrling, Inc., manufactures metal racks for hanging clothing in retail stores. Ehrling was approached by the CEO of Carly’s Corn
Mariulka [3449]

Answer:

additional revenue = $26,250

relevant costs:

direct materials = 350 x $82 = $28,700

direct labor = 525 x $15 = $7,875

setup hours = 1 x $5 = $5

inspection costs = 20 x $5 = $100

machining = 175 x $3 = $525

total relevant costs = $37,205

1) change in income if order is accepted:

total revenue - total relevant costs = $26,250 - $37,205 = -$10,955

the company will incur a loss of $10,955 if the order is approved.

2) if the cost of direct materials is decreased by $13 per unit = $13 x 350 = $4,550, and if direct labor can be reduced by 0.5 hours per unit = 175 hours (= 175 x $15 = $2,625) ⇒ total relevant costs will be lowered by $7,175.

It results in a $3,780 (= $10,955 - $7,175) loss if the special order is accepted.

8 0
1 month ago
Tom works for a large payroll outsourcing firm. One of his key customer’s contracts is set to expire in one month. Competition h
Nady [3242]

Answer:

He ought to present reasons why his company can satisfy the customer's particular needs.

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It's important to articulate how the firm can meet the customer's distinct requirements.

Tom discussed industry trends, noted his firm’s successful history, and proposed pricing alternatives.

A crucial aspect he overlooked, which is vital in these circumstances, is conveying why his company stands out in fulfilling customers’ needs and supporting them toward their objectives. This is significant since various competitors provide similar services, and what distinguishes his company is its ability to better address customer expectations.

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1 month ago
The concept of​ "Power Payments" will help you repay your loans faster and reduce your total interest payments. Consider a situa
Nady [3242]

Answer:

Your priority should be to settle loan C, as it entails the highest monthly payment and the steepest APR. Paying off your credit card balance (loan C) as soon as possible is advantageous.

In contrast, loan B requires a lower monthly payment and features a significantly reduced APR.

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