How would you satisfy both retailers and consumers when using revenue management tactics?

Does Attractiveness Lead to Higher Marginal Revenue Product?

Economist David Hamermesh of the University of Texas, Austin, and Jeff Biddle of Michigan State University discovered that “plain-looking” people earn 5 to 10 percent less than people of “average” looks, who in turn earn 5 percent less than those who are considered “good looking.” Surprisingly, their research showed that the “looks effect” on wages was greater for men than for women. This wage differential related to appearance is not, contrary to popular belief, evident only in modeling, acting, or working directly with the public. Looks seem to account for higher earnings in jobs such as bricklaying, factory work, and telemarketing.

According to Hamermesh and Biddle, part of the wage differential may be created by the fact that attractiveness leads to higher marginal revenue product. More attractive persons may have higher

self-esteem, which in turn causes them to be more productive.

QUESTION: What are some other possible reasons that more attractive people tend to earn more?

- For buying influences in the growth mode, what positives (revenue, retention, brand awareness, etc) could help them to increase growth?

- For buying influences in the trouble mode, what negatives (cost, waste, risk, etc) could help them to decrease trouble?

- For buying influences in the even keel or overconfident mode, what strategies could you use to deploy to move them to either a growth or trouble mode?

- What are two RESULTS (for each of the BI’s)? How do these RESULTS relate these BIs’ specific business concerns? How do these results improve or fix a process of concern?

- How do each of these two BIs WIN if the product/service is able to deliver these RESULTS?

1. What, if anything, should be done about the deficit? Would you increase revenue? If so, what taxes would you adjust? Should expenditures be slashed, what should be decreased? By how much?

2.Which has a larger effect on aggregate demand: an increase in government expenditure or an equal sized decrease in taxes?

demonstrate with example how you would apply control process to ensure that revenue goals is achieved

Draft a spreadsheet showing financial history and projected performance for Nordstrom. The rows should include revenue, expenses, calculated profit, and calculated profit margin. The columns should represent years: two years of history, plus three years of your reasonable future projections. Include a few sentences of key assumptions and conclusions. The spreadsheet must have accurate calculations and look professional on screen and when printed (including a heading and meaningful number formatting).

Income Statement

All numbers in thousands

10. Suppose that a firm finds that its low-productivity workers have a marginal revenue product of $21,000 per year and that its high-productivity workers have a marginal revenue prod- uct of $35,000 per year. The cost of receiving a year’s worth of higher education is $4,000 for a low-productivity worker and $3,200 for a high-productivity worker. (This cost can be thought of as repayment on loans that have been incurred in the process of obtaining the education.) The firm plans to offer a wage of $21,000 to workers without higher education and $35,000 to workers who attain a “certain” level of higher education.

    1. If this firm uses this pair of wage offers and wishes to create a separating equilibrium using education as a separating device, how many years of education should be re- quired to receive the higher wage?

    2. Why does education work as a signal in this instance?

    3. Does education increase the marginal productivity of workers in this instance?

Select at least 4 or 5 of the highest revenue-producing products your firm currently offers to the marketplace or 4 or 5 of the highest revenue-producing companies that it currently operates, and then construct a BCG Matrix using relative market share and market growth rate as your two variables of interest. Identify each of the products (or companies) in your matrix as either a star, question mark (problem child), cash cow, or dog. Finally, for each product (or company) in the matrix, offer your opinion as to the likelihood that it will still be located in the same quadrant five years from now.

Company: Kohl's

Fill out the summary of T-Accounts for

1. Revenue and Expenses (Temporary Income Statement Accounts)

       -Includes: Sales and Service Revenue, Costs of Goods sold, Wages Expense, Insurance Expense, Rent Expense, Depreciation Expense.

2. Assets (Permanent Balance Sheet Accounts)

      -Includes: Cash, Inventory, accounts receivable, prepaid insurance, equipment, accumulated depreciation, prepaid rent.

3. Liabilities and Equities (Permanent Balance Sheet Accounts)

      -Includes: Accounts payable, unearned revenue, wages payable, common stock, retained earnings

4. What are the total Assets?

5. What are the total Liabilities & Shareholder's Equity?

    Note: Total assets and Liabilities + Shareholders equity should balance.

1. Jan. 1: Log issued $40,000 of common stock.
2. Jan. 1: Log paid $18,000 cash to purchase an equipment. The equipment has an estimated useful life of 5 years and an estimated salvage value of $3,000.
3. Jan. 1: Log paid $7,000 cash for two years of insurance coverage starting on Jan. 1, 2020.
4. March 1:Log rented a building and paid $2,400 for one year’s rent (starting 3/1).
5. April 1: Log purchased $5,700 of inventory on account.
6. June 1:Log sold $23,000 of software on account. The cost is $3,500.
7. Sept. 1: Log collected $7,000 cash from its customers for the previous sales on account.
8. Oct 31: Log paid $5,000 cash for employee wages earned during the first ten months (Jan 1 to October 31, $500 per month).
9. Nov 1: Log paid $3,300 cash to suppliers for inventory purchases made on account.
10. Dec 1: Log started an on-line service where customers pay an annual subscription fee when they sign up for a 12-month service plan. On Dec. 1, Log received $3,600 of cash from customers for one year of subscription fees (for online services from Dec 1, 2020 to Nov 30, 2021).

Additional Info:

-Xenon uses Straight Line Depreciation

-Two months of employee wages was accrued on Dec. 31, 2020. Xenon plans to pay employees Jan. 1 2021