Question: Which one is NOT a profitable strategy adopted by Costco: A. Costco customers are willing to pay more than market price B. Online website carries
Which one is NOT a profitable strategy adopted by Costco:
| A. | Costco customers are willing to pay more than market price | |
| B. | Online website carries less popular variants | |
| C. | Costco uses a decentralized channel strategy | |
| D. | Physical stores carry some popular variants of a product |
Use the breakeven model to determine which of the statements below is TRUE according to the information provided in the table relating to two different locations considered for a new manufacturing facility.
| LOCATION | ANNUAL FIXED COSTS | UNIT VARIABLE COSTS |
| Site A | $50,000 | $10 |
| Site B | $20,000 | $30 |
| A. | The breakeven point for these two locations is 500 units per year | |
| B. | Site A is the desired location if the production rate is 1000 units per year | |
| C. | The breakeven point for these two locations is 1500 units per year | |
| D. | Site B is the desired location if the production rate is 2000 units per year |
-
A certain organization trying to decide where to locate their future factory is considering three locations. They are taking into account three factors: labor costs, currency stability, and proximity to market. Using the weights for each factor listed below and the scores achieved by each of the three considered locations, determine which location should be chosen for the new facility based on the weighted factory location model.
SCORES (Maximum 100)
FACTOR
WEIGHT
SITE A
SITE B
SITE C
Labor Cost
0.50
90
80
80
Currency Stability
0.30
80
85
80
Proximity to Market
0.20
80
80
80
A. All sites are equally attractive
B. Site C
C. Site B
D. Site A
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts