You own a small business and want to increase the total revenue you collect from sales of your product.
In each of the scenarios described below, what can you do to increase total revenue?
|
Scenario |
Action |
|
The demand for your product is inelastic. |
▼ Total revenue cannot increase with changes in price. Price of the product should be increased. Price of the product should be decreased. |
|
The demand for your product is elastic. |
▼ Total revenue cannot increase with changes in price. Price of the product should be increased. Price of the product should be decreased. |
|
The demand for your product is unit elastic. |
▼ Price of the product should be decreased. Total revenue cannot increase with changes in price. Price of the product should be increased. |
In: Economics
Use the following information on Disney to answer the case questions.
What is the Constant Growth Model, the Multi-Stage Growth Model, Discounted Dividend Model, and Market Multiples Approach?
In: Finance
1. Which of the following is a reason why brands matter to consumers?
Select one:
a. means of legally producting unique features
b. source of competitive advantage
c. source of financial returns
d. risk reducer
2. A product so basic that it cannot be physically differentiated in the minds of consumers is a(n):
Select one:
a. credence product
b. commodity
c. convenience good
d. shopping good
3. A customer who regularly buys Pink from Victoria's Secret is expressing brand:
Select one:
a. resonance
b. judgement
c. imagery
d. salience
4. Describing an MP3 player as "musical entertainment on the move" focuses on the ____ product level
Select one:
a. expected
b. core
c. generic
d. augmented
5. A product that does not perform up to expectations is an example of ____ risk.
Select one:
a. functional
b. social
c. time
d. financial
In: Operations Management
Phoenix Company’s 2017 master budget included the following
fixed budget report. It is based on an expected production and
sales volume of 15,000 units.
|
PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 |
|||||
| Sales | $ | 3,150,000 | |||
| Cost of goods sold | |||||
| Direct materials | $ | 900,000 | |||
| Direct labor | 240,000 | ||||
| Machinery repairs (variable cost) | 45,000 | ||||
| Depreciation—Plant equipment (straight-line) | 315,000 | ||||
| Utilities ($45,000 is variable) | 195,000 | ||||
| Plant management salaries | 190,000 | 1,885,000 | |||
| Gross profit | 1,265,000 | ||||
| Selling expenses | |||||
| Packaging | 90,000 | ||||
| Shipping | 90,000 | ||||
| Sales salary (fixed annual amount) | 235,000 | 415,000 | |||
| General and administrative expenses | |||||
| Advertising expense | 125,000 | ||||
| Salaries | 230,000 | ||||
| Entertainment expense | 85,000 | 440,000 | |||
| Income from operations | $ | 410,000 | |||
Required:
1&2. Prepare flexible budgets for the company
at sales volumes of 14,000 and 16,000 units and classify all items
listed in the fixed budget as variable or fixed.
In: Accounting
Use the following information on Disney to answer the case questions.
◼ Disney’s current stock price is $140.00 per share. The average growth rate of the company’s dividend has been 17.7% from 2004 through 2018
◼ Disney’s return on equity is 28.0% and the company retains approximately 80.0% of its profits while paying out the remaining 20.0% in dividends.
◼ The company’s stock currently trades at 21.21 times its current year earnings estimate of $6.60 per share.
◼ Analysts expect the company to earn $6.19 per share in 2020 and $6.93 in 2021. ◼ Disney’s peers in media networks trade at 25.5 times their current year earnings estimates while peers in parks, experiences and consumer products at 21.9; studio entertainment at 19.1 and DTCI at 14.1.
◼ Assume the expected return for Disney’s stock is 6.9%.
What is Disney stock’s intrinsic value using Multi-Stage Growth Model
In: Finance
Phoenix Company’s 2017 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units. PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 Sales $ 3,000,000 Cost of goods sold Direct materials $ 900,000 Direct labor 210,000 Machinery repairs (variable cost) 45,000 Depreciation—Plant equipment (straight-line) 330,000 Utilities ($45,000 is variable) 180,000 Plant management salaries 190,000 1,855,000 Gross profit 1,145,000 Selling expenses Packaging 90,000 Shipping 105,000 Sales salary (fixed annual amount) 235,000 430,000 General and administrative expenses Advertising expense 150,000 Salaries 230,000 Entertainment expense 80,000 460,000 Income from operations $ 255,000 Required: 1&2. Prepare flexible budgets for the company at sales volumes of 14,000 and 16,000 units and classify all items listed in the fixed budget as variable or fixed.
In: Accounting
In: Advanced Math
Video Planet (VP) sells a big screen TV package consisting of a 60-inch plasma TV, a universal remote, and on-site installation by VP staff. The installation includes programming the remote to have the TV interface with other parts of the customer’s home entertainment system. VP concludes that the TV, remote, and installation service are separate performance obligations. VP sells the 60-inch TV separately for $1,750 and sells the remote separately for $100, and offers the entire package for $1,900. VP does not sell the installation service separately. VP is aware that other similar vendors charge $150 for the installation service. VP also estimates that it incurs approximately $100 of compensation and other costs for VP staff to provide the installation service. VP typically charges 40% above cost on similar sales. Required: 1. to 3. Calculate the stand-alone selling price of the installation service using each of the following approaches.
In: Accounting
Phoenix Company’s 2017 master budget included the following
fixed budget report. It is based on an expected production and
sales volume of 15,000 units.
|
PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 |
|||||
| Sales | $ | 3,300,000 | |||
| Cost of goods sold | |||||
| Direct materials | $ | 945,000 | |||
| Direct labor | 210,000 | ||||
| Machinery repairs (variable cost) | 60,000 | ||||
| Depreciation—Plant equipment (straight-line) | 315,000 | ||||
| Utilities ($30,000 is variable) | 210,000 | ||||
| Plant management salaries | 190,000 | 1,930,000 | |||
| Gross profit | 1,370,000 | ||||
| Selling expenses | |||||
| Packaging | 75,000 | ||||
| Shipping | 90,000 | ||||
| Sales salary (fixed annual amount) | 235,000 | 400,000 | |||
| General and administrative expenses | |||||
| Advertising expense | 125,000 | ||||
| Salaries | 241,000 | ||||
| Entertainment expense | 80,000 | 446,000 | |||
| Income from operations | $ | 524,000 | |||
Required:
1&2. Prepare flexible budgets for the company
at sales volumes of 14,000 and 16,000 units and classify all items
listed in the fixed budget as variable or fixed.
In: Accounting
1.How did the marketing campaign for Hunger Games: Catching Fire mark a departure from a traditional marketing campaign for a movie? What was innovative about the marketing approach adopted by Lionsgate?
2. A good transmedia storytelling campaign should be persistent, pervasive, participatory, and personalized. Critically evaluate the campaign based on these elements.
3. Discuss why Lionsgate focused on engaging existing fans rather than attracting new customers to the movie. Do you agree with the decision to not focus on other segments like older customers or male customers?
4. Carefully review all the creative and media tactics used in the campaign. What did Lionsgate do well and what could have been done better?
5. To what extent can the transmedia storytelling approach be used for marketing non- entertainment products? What contextual factors would determine the applicability and effectiveness of this approach?
In: Operations Management