Imani enjoys shopping at Costco especially close to lunch or dinner because she can often try a variety of different products such as dips, cheese, beverages, and crackers. Costco is using _______ as a type of consumer-oriented sales promotion.
Read DetailsWell, this is frustrating! Six months ago, you decided to attract more customers to your gas station/mini-mart by offering all snacks, candy, and beverages for 50% off. When you checked your finances three months ago, you could see a noticeable uptick in business. Having achieved your goal, you then discontinued the snack specials, and you’ve just discovered that business has dropped off so much that you’re earning even less than when you started! What do you think went wrong?
Read DetailsJavier is the business manager at his college. In his role, Javier makes a lot of business decisions. Javier has installed a vending machine in a dorm for soft drinks. The machine rents for $200 a month and the electrical use is minimal. Javier buys soft drinks for $.25 each and charges $.75 each from the vending machine. Currently, the machine has a sales volume of 400 cans a month. Javier thinks lowering the price to $.60 each will increase sales by 100 cans a month. What affect will this have on profit or loss?
Read DetailsVandelay Industries manufactures a range of latex products. Vandelay recently purchased new equipment to manufacture latex gloves for the medical community. The new machinery costs $70,000 and can produce 40,000 pairs of gloves each day. The raw latex material for each pair of gloves costs $.03 and Vandelay sells the gloves at a wholesale price of $.10 a pair. Vandelay’s contribution margin for a pair of gloves is:
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