Janet is providing her personal assistant services in a very competitive city. She hasdecided to lower her hourly rate by 10% in order to maintain all her current clients.What warning would you provide to Janet in lowering her rate?this could be perceived as offering a lower quality of serviceshe needs to assess what this does to her net incomeall of the warnings noted in the options are things to considerthis could increase demand for her services resulting in increasing costs

A person Janet is offering services in a competitive city and to retain her customers she lowers her…

Answered: Janet is providing her personal…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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If you work at a medical practice that appears to be busy and well-run but always seems short on cash at the end of each month, what areas will you look at to improve the revenues of the practice? Billing rates, staff member salaries, and partnership draws are appropriate. As the practice’s administrator, the partners have asked you to review the problem and make recommendations. What recommendation would you make?
What are the steps to constructing a Profit-Volume graph?
When product demand fluctuates and yet you maintain aconstant level of employment, some of your cost savingsmight include:a) reduction in hiring costs.b) reduction in layoff costs and unemployment insurancecosts.c) lack of need to pay a premium wage to get workers toaccept unstable employment.d) having a trained workforce rather than having toretrain new employees each time you hire for anupswing in demand.e) all of the above.
What is the difference between business models and revenue models?, give an example.
Joel is the RM for the City Center Plaza hotel. He knows that under his franchise agreement, he pays an 8 percent franchise fee and 3 percent marketing fee on all revenue generated from room sales. Additional fees for using the hotel’s CRS are $2.00 per each room reserved. Internet service provider (IDS) related charges paid by the hotel for rooms sold through Internet sites including uberhothotels.com are $10.00 per room sold. Given this information, help Joel complete the revenue estimate worksheet presented below. Net ADR Yield Estimate Worksheet: City Center Plaza Distribution Channel Group rooms Third-party merchant Rooms sold 80 100 Standard rate $185 $160 Gross revenue Franchise fee (8%) Franchise marketing fee (3%) Franchisor's CRS fee ($2 per room) IDS fee Net total revenue Net ADR yield
Suppose that Switch decide to extend the business operations to nutrition consulting whereby they offer consulting services with a focus on energy and performance enhancement. In addition, they provide nutrition plans that include nutrition plans that include recommendations for including Switch Energy drink into their diets. The business unit has been able to acquire many customers despite its recent entry into the market. However, management are concerned that they may lose customers, similar to their product line. Provide a report in which you recommend to management, how they could instil a service culture within this unit so as to avoid the loss of customers.
To protect themselves, restaurant owners should make their lease contingent on obtaining the necessary? a SBA approval b loans c licenses and permits d partners
One of your customers is delinquent on hisaccounts payable balance. You’ve mutually agreed to a repayment schedule of $700per month. You will charge 1.3 percent per month interest on the overdue balance. Ifthe current balance is $21,500, how long will it take for the account to be paid off ?
Cost-Volume-Profit Analysis (CVP analysis), also commonly referred to as Break-Even Analysis, is a way for companies to determine how changes in costs (both variable and fixed) and sales volume affect a company’s profit.1. Discuss the main components of CVP analysis by providing your own numerical example and constructing a Break-Even Chart.provide the meaning of cost volume profit analysis. Provide numerical data and calculate contribution margin ratio and variable expense ratio, break even in units and in sales, changes in net income, margin of safety and degree of operating leverage. Also, state the assumptions of cost volume profit CVP analysis??
May Clothing is a retail men’s clothing store. May’s variable cost is $20 per shirt and the sales price is$40 per shirt. May plans to sell 400,000 shirts for the year and, at this level, would generate a beforetax profit of $2,500,000. What is the degree of operating leverage (DOL) at this volume level?
Annie bought one dozen smartphones for 200,000 pesos with a discount of 5%. She sold half dozen at a price of 18,000 pesos per unit. However, a new model of smartphone became available in the market, so she sold the remaining half dozen at 12,000 pesos each unit. What was her profit or loss? Compute the following requirements: a. Gross profit rate b. Operating profit margin rate c. Net profit margin rate d. Return on investment
Income taxes have the effect of Select one : a decreasing the cost of capital for the firm. B. None of these c. decreasing the cost of debt. D. increasing the cost of debt

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