“A customer-profitability profile highlights those customers a company should drop to improve profitability.” Do you agree? Explain.

Q: The barrier to entry that helps reduce the threat of new entrants for an incumbent firm using a…

A: Cost Leadership: in cost leadership a company has lower cost of operation. Cost leadership company…

Q: Explain the meaning of (a) differential revenue, (b) differential cost, and (c) differential income.…

A: “Since you have posted a question with multiple questions, we will solve the first three questions…

Q: Break-even analysis is concerned with determining  a point at which the company can minimize total…

A: Breakeven analysis is very important done by management and cost accountants of the business. With…

Q: How do companies add value, and what arethe dimensions of performance that customersare expecting of…

A: Step 1: The companies may add through the following things: Research and development, Proper…

Q: 6. What will be the impact on a company's profit if sales mix shifts between low margin and high…

A: Sales mix represents the proportion of sales of each product in relation with the total sales of the…

Q: Company X sees a disruption in its supply chain at the same time it sees a decrease in customer…

A: A supply chain network is an organization of individuals, associations, and exercises that move an…

Q: Explain why is important for a business to understand their composite mix of products when…

A: Sales mix is the proportion of sales in quantity with respect to total sales quantity. It is…

Q: If competition causes all companies to have similar ROEs in the long run, wouldcompanies with high…

A: Companies with high Turnover will have Low-Profit Margins.

Q: rrier to entry that helps increase the threat of new entrants for an incumbent firm using a…

A: In the context of a competition, cost leadership refers to a company's claim to be the cheapest…

Q: Which of the following choices correctly denotes factors that can influence a company's pricing…

A: Pricing a product or service is an important task for every organisation. It is the basis for the…

Q: The strategy that the company could take to maintain the competitive advantages are Cost Leadership,…

A: Competitive advantage refers to factors that allow a company to produce goods or services better or…

Q: Should a firm have a firm grasp of the concepts of differential cost, opportunity cost and sunk cost…

A: Costs: It refers to the monetary value of expenditures incurred for carrying out operating and…

Q: profit margin,

A: In simple words, profit margin refers to the amount of profit that a company makes on its sales. If…

Q: Which of the following is not a reason a company would be willing to accept new business at a loss?…

A: Cost accounting is the branch of accounting that inspects the cost structure of a business. This…

Q: Break-even analysis is concerned with determining a point at which the company can minimize total…

A: Break-even point is the point reached by the company where the revenues and costs of the firm are in…

Q: What is meant by a product’s contribution margin ratio? How is this ratio useful in planning…

A: Contribution margin is the sales revenue of the business after deduction of variable costs from…

Q: Discuss and give reasons as to why a business would want to use non-financial performance measures…

A: Non Financial Measures: Non Financial measures are the measures which cannot be expressed in…

Q: What advice would you give those who want to invest in this company? (recommendations)  (based on…

A: Before investing in any companies’ securities, performance and growth is evaluated by considering…

Q: From a strategic management perspective, the primary reason a firm performs CVP analysis is to find…

A: CVP Analysis: CVP analysis is used to determined the how the changes in volume and costs effect the…

Q: Which of the following statements about close buyer-seller relationships in business markets is…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: A cost center is a responsibility center of a company which incurs losses. incurs costs and…

A: A cost center definitely incurs some cost to the business.

Q: Companies have found that offering discounts to customers in return for early payment can be…

A: Inventory management is an integral part of working capital management. Inventory is a crucial…

Q: Cost Behavior - Operating leverage and profitability analysis Discuss how understanding cost…

A: Understanding cost behaviour entails comprehending how an entity's costs and expenditures affect its…

Q: To compete successfully for the better stockholders and better lenders, a business would need: Good…

A: Financial ratios assist investors and lenders in deciding which companies to invest in or lend to.…

Q: Efficient customer service could be achieved through avoiding stock outs by making accurate   A.…

A: Stock Out: The simple meaning is: When there is a demand in market for the product but the company…

Q: If the company is successful in achieving challenging targets for the performance measures of…

A: On-time delivery – 3 types of performance measures would be Percentage of orders that were…

Q: Calculate the effect on profit of a proposed change in ‘Sales Mix’ from the following data and also…

A: Sales mix should be such that the total contribution can be maximised. Which can be done by giving…

Q: Explain how the sales mix can affect the profitability of a company.

A: The sales mix is a calculation that determines the proportion of each producta business sells…

Q: Why is customer-profitability analysis an important topic to managers?

A: Customer profitability analysis helps management in allocating profitability to each customer, but…

Q: Questions: Does a low return on sales indicate a weak company? (Y/N). Explain your answer. Do…

A: Multi Step statement of comprehensive income shows all incomes and all expenses of the business at…

Q: Identify which of the statements below are true (T) or false (F). Lean businesses aim to: Reduce…

A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…

Q: Which of the followings is NOT an advantage of financial institutions in consumption smoothing? A.…

A: Financial Institutions Institutions involved in financial transactions such as lending and borrowing…

Q: Why is the profit maximization supposed not the most important goal of the company?

A: Solution Profit maximization is a process business firms undergo to ensure the best output and price…

Q: Which of the following marketing concepts believes that consumers will not buy enough of the…

A: The answer is Selling Concept

Q: Which of the following statement is correct about cost-benefit analysis? O A. Costs and benefits…

A: Option A. Costs And Benefits Must Be Put Into Common Units (such As Dollars) If They Are To Be…

Q: PLEASE IDENTIFY AN ORGANIZATION If a firm is performing poorly financially, what might this say…

A: The organization which conducts any business activities have their strategies. The business entity…

Q: Explain why rewarding sales personnel on the basisof total sales might not be in the best interests…

A: The main goal of the business is to earn huge profits and maximize their returns in the long run.…

Q: 1) Which of the following statements describes the force that drives the distribution of resources…

A: Free enterprise economy is the system of economy which is control by market forces which are demand…