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Baldwin's product manager is considering lowering the price of the Best product by $2.50 and wants to know what the impact will be on the
Baldwin's product manager is considering lowering the price of the Best product by $2.50 and wants to know what the impact will be on the products contribution margin. Assuming no inventory carry costs, what will Best's contribution margin be if the price is lowered? 34.00% 31.58% 32.30% 30.00% Refer to the HR Reports in the Inquirer. Through past investments in recruiting and training Digby has obtained a productivity index of 109.4%. This means that Digby's labor costs would be increased by 9.4% if it did not have these productivity improvements. This is a competitive advantage that Digby can sustain or even widen further if its competitors have no HR initiatives. Now, refer to the Income Statement in Digby's Annual Report. How much did Digby's productivity improvements save it in direct labor costs (in thousands) last year? $3,063 $821 $29,784 $3,140 From a marginal analysis perspective, what is the inventory carry cost for Andrews if the company carries one additional unit of Ate in inventory at the end? $3.85 $1.92 $1.20 $9.98 Looking forward to next year, if Chesters current cash balance is $19,743 (000) and cash flows from operations next period are unchanged from this period and Chester takes ONLY the following actions relating to cash flows from investing and financing activities: Issues 100 (000) shares of stock at the current stock price Issues $200 (000) of long-term debt Pays $40 (000) in dividends Which of the following activities will expose Chester to the most risk of needing an emergency loan? Select: 1 Retires $20,000 (000) in long-term debt Purchases assets at a cost of $15,000 (000) Liquidates the entire inventory Sells $5,000 (000) of their Long-term assets Boat's product manager continues to perform well in the market. However, a competing product is coming on strong and is looking to take over as the market share leader in the segment. Without sacrificing contribution margin, what can the Boat product manager do in order to improve upon the buying criteria, and thus potentially increase demand? Reposition Boat to make it even smaller and higher performing Increase the promotion budget to gain greater awareness Lower the selling price since it is the second most important buying criteria Increase MTBF by 2000
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