Question: can i get the answer to this question? ps: both pictures are actually 1 question Acme Widget Company, based in Oregon, makes widgets for the

can i get the answer to this question?
ps: both pictures are actually 1 question can i get the answer to this question? ps: both
can i get the answer to this question? ps: both
Acme Widget Company, based in Oregon, makes widgets for the US market. Each widget sells for $200 at retail (price that customers pay). Acme Widget, however, does not sell widgets directly to consumers. It has dealers who get a 35% dealer commission (off retail customer price of $200) for each widget they sell to end-user for $200. Each widget uses $5.15 of titanium: $26.75 worth of chips & electronics: $14.45 worth of plastic parts: $3.57 of glass. The widget is assembled in Acme's own facility that has 10 assemblers who are paid a salary of $3000 per month plus $2.00 bonus for each widget assembled. Acme has 7 sales reps who are paid entirely on commission. They get $25 for each widget sold. Office/factory lease rate is $15,500 per month. Utilities cost $3,453 per month. Other overhead costs are $225,000 per month. Acme, on average, sells 10.000 widgets per month. Acme's VP of sales has been recommending lowering prices. She believes that a 10% price decrease will increase sales by about 10%, and a 15% price decrease, she believes, will bring in 20% more unit sales. CEO of the company has asked you, the CMO, to make a recommendation on price change request from the VP of Sales. In speaking with many of Acme's dealers, you have learnt that a 15%6 price increase will lower Acme's sales by somewhere between 17% to 24. Dealers have also confirmed that price reduction will bring in more sales and their estimate of sales increase is in line with what Acme's VP of Sales nas stated. CEO of the company has asked you, the CMO, to make a recommendation on price change request from the VP of Sales. In speaking with many of Acme's dealers, you have learnt that a 15% price increase will lower Acme's sales by somewhere between 17% to 24%. Dealers have also confirmed that price reduction will bring in more sales and their estimate of sales increase is in line with what Acme's VP of Sales has stated. To keep matters simple, the CEO has asked you to make ONE recommendation from the four choices of: a. Reduce price by 10% b. Reduce price by 15% c. Keep price as is d. Raise price by 15% Assuming that the CEO's goal is to maximize annual profits, what would you advise the CEO? Why? (Please show your logic/math) HTML Editore B IV A - AI E333 X E E PN VC 112pt Paragra

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