Nantgwynfaen Organic Farm (NOF) is a farm growing a range of fruit and vegetables. It has a farm shop and offers accommodation with breakfast. It was set up by Amanda and Ken Edwards in West Wales, UK. NOF supports farmers by selling local organic produce in its farm shop. The produce from the farm shop is served to the visitors staying overnight at the farm. NOF is committed to being environmentally friendly by recycling, avoiding the use of packaging and reducing the use of electricity. NOF is looking to expand its product range by making and selling tubs of ice cream. Analyse how useful break-even calculations can be for NOF when deciding whether to include ice cream in its product range.

Nantgwynfaen Organic Farm (NOF) is a farm growing a range of fruit and vegetables. It has a farm shop and offers accommodation with breakfast. It was set up by Amanda and Ken Edwards in West Wales, UK. NOF supports farmers by selling local organic produce in its farm shop. The produce from the farm shop is served to the visitors staying overnight at the farm. NOF is committed to being environmentally friendly by recycling, avoiding the use of packaging and reducing the use of electricity. NOF is looking to expand its product range by making and selling tubs of ice cream. Analyse how useful break-even calculations can be for NOF when deciding whether to include ice cream in its product range.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter23: Managing Vertical Relationships

Section: Chapter Questions

Problem 4MC

See similar textbooks

Similar questions

Please no written by hand solutions eBay is the largest online auction site. Sellers pay a small fee to list their items, which can be sold at a fixed price or auctioned. Generally, the auction lasts several days, and the bidders submit electronics bids. After the auction closes, the highest bidder receives an email and gets three business days to contact the seller. eBay provides ratings on buyers and sellers based on their positive and negative comments. eBay has set up policies to guard against ‘feedback manipulation’ and ‘feedback abuse.’ eBay encouraged buyers to pay through ‘PayPal’ and ‘PayPal’ provides $2000 free insurance in case the buyer doesn’t receive the product or the quality of the product is poorer than expected. eBay’s safety staff investigates alleged misuses at eBay, such as fraud, trading offenses, and illegally listed items. A potential resolution is banning a seller from future trading on eBay. Based on the above situation, answer the following questions: What…
Nantgwynfaen Organic Farm (NOF) is a farm growing a range of fruit and vegetables. It has a farm shop and offers accommodation with breakfast. It was set up by Amanda and Ken Edwards in West Wales, UK. NOF supports farmers by selling local organic produce in its farm shop. The produce from the farm shop is served to the visitors staying overnight at the farm. NOF is committed to being environmentally friendly by recycling, avoiding the use of packaging and reducing the use of electricity. NOF is looking to expand its product range by making and selling tubs of ice cream. A tub of ice cream will sell for £2.50. Variable costs will be £1.10 per tub of ice cream with fixed costs of £77 per day. Calculate the number of tubs of ice cream NOF will have to sell each day to break-even. You are advised to show your working.
NutraSweet Aspartame is a low-calorie, high-intensity sweetener known by Monsanto’s brand name, NutraSweet. It was the key to the success of Diet Coke and Diet Pepsi in the 1980s. NutraSweet made billions of dollars, yielding very high profits. Such profits usually attract entry, but in this case entry was barred by a patent on the sweetener and because the process of creating the sweetener was expensive and difficult. Monsanto had a distinct capability—its monopoly. It had also created another strategic asset—the NutraSweet brand name as represented by its trademark ‘swirl.’ The problem was that Monsanto’s patent was about to expire. As a result, the Holland Sweetener Company began building an aspartame plant in Geleen, the Netherlands, to challenge Monsanto’s hold on the aspartame market. Holland Sweetener was a joint venture between the Japanese Tosoh Corporation and DSM (Dutch State Mines). What did Monsanto do? Why? What did Holland Sweetener do? Why?
Piracy, the unauthorized use of IPR, is a critical issue in the entertainment industry. Several file-sharing services—USENET, BitTorrent, and Limewire—enable users to download movies, TV programs, and music virtually for free. A predominant way in which firms have taken action against file-sharing is through Digital Rights Management (DRM), which includes several technologies that curb the usage of digital content. DRM has been the object of severe criticism, targeted for everything from harming legitimate users to preventing viral marketing and presenting a powerful obstacle to free trade. What is worse is that most DRM systems have been cracked quite easily. Considering both the ease of piracy and the relative failure of preventive measures, how should media firms safeguard their IPR and secure their profitability? Should they seek other IPR technologies? Should they aggressively seek and bring offenders to trial? Or are there ways in which firms can make profit while allowing open…
A free market is one where decisions regarding what and how much to produce are made by the market itself. This market is made up of buyers and sellers negotiating prices for goods and services. It is generally accepted that there are four degrees of competition within a free-market system. These include perfect competition, monopolistic competition, oligopoly, and monopoly. One benefit of the free market is that it allows open competition among companies. Businesses must provide customers with high-quality products at fair prices with good service. If they don't, they lose customers to businesses that do. Select the degree of competition that best describes each listed industry or business based on the description.
Which of the following situations illustrate inclusivity in a school community? * A. Walkways around the campus are fixed to ensure that they are smooth and ramps are at the right angle for people with locomotion difficulties. B. One toilet in each college was retrofitted to install grab bars and widen doors to accommodate a wheelchair. C. All of the above D. The University introduced two modern tricycles which can ferry students who use wheelchairs.
Recent years have seen the introduction of Uber and Lyft, which enable customers to find a ride using an app on their smartphone. In many cities, the two services undercut traditional taxi fares, leading to phenomenal growth. Uber and Lyft are best described as the a. marketing concept. b. sharing economy economic model. c. environmental marketing model. d. customer lifetime value model. e. sustainable marketing model.
Together, EMI, Sony BmG Music Entertainment, Universal Music Group Recordings, Inc., and Warner Music Group Corporation produced, licensed, and distributed 80% of the digital music sold in the United States. The companies formed MusicNet to sell music to online services that sold the songs to consumers. MusicNet required all of the services to sell the songs at the same price and subject to the same restrictions. Digitization of music became cheaper, but MusicNet did not change its prices. Answer the following questions in your initial posting. Did MusicNet violate the antitrust laws? Why or why not? Explain using specific legal principles from chapter 46. Suggest one fact that would alter the outcome of the case. Be creative.
Nestle baby formula is known for causing illness and infant deaths in poor communities in third world countries by promoting their infant formula products at the expense of breastfeeding. They have provided unethical marketing practices. Promotional campaigns of multinational corporations (MNCs) have exacerbated the problem of controlling the use of this potentially dangerous product by luring the consumer into the market.
General Motors, the automobile manufacturing company, recently ran an advertisement for its cars. It offered a 21% discount on its suggested retail price on all of its cars only to “current competitive owners” - anyone who is currently owning or leasing a NON-General Motors car. Customers must show proof of ownership (or lease) of a 2001 model year or newer non-GM vehicle dated at least 30 days prior to the sale of a new General Motors car. 1) How does General Motors benefit from selling cars at a 21% discount to non-GM owners? Explain why this pricing strategy increases General Motors’ revenues and profits versus selling all General Motors cars at one price. Be sure to use economic concepts used in the class for your answer. 2) Why does General Motors require proof of ownership (or lease) of a non-GM vehicle? Explains how this benefits General Motors.
The onset of the COVID-19 pandemic forced many companies to conduct business remotely rather than in office buildings. In many cases, these companies found it more cost-effective to remain working remotely after the pandemic. Fees for building rentals, electricity, and other expenses are not present when employees work from their homes. One challenge faced by this change in business practice is communication. Employees can no longer walk across the hall, or peek over their cubicle walls, to ask for clarification from their coworkers about an issue. Sunny Day Technology took advantage of this situation to develop and market new computer software to help corporations develop effective communication between virtual employees. Use the knowledge you’ve gained in this and previous Units to answer the following questions. Support your response by providing examples and details. How can More Sunny Day Technology Company market the right price for its new product? How can you comprehend…
The onset of the COVID-19 pandemic forced many companies to conduct business remotely rather than in office buildings. In many cases, these companies found it more cost-effective to remain working remotely after the pandemic. Fees for building rentals, electricity, and other expenses are not present when employees work from their homes. One challenge faced by this change in business practice is communication. Employees can no longer walk across the hall, or peek over their cubicle walls, to ask for clarification from their coworker about an issue. More Sunny Day Technology took advantage of this situation to develop and market new computer software to help corporations develop effective communication between virtual employees. Use the knowledge you’ve gained in this and previous Units to answer the following questions. Support your response by providing examples and details. How can More Sunny Day Technology Company market the right price for its new product? How can you comprehend…