The chair business uses price as major competitive factors, Operation Management

Assignment Help:

Management believes they can increase the price per chair by 10 percent in this new situation and improve profits by 10 percent. However, the sales department cautions that the price increase may decrease sales by 10 percent because the chairs will be higher-priced than the competition. Because the chair business uses price as one of its major competitive factors, the sales department feels that sales will be hurt. Using our model, what will happen to profits if both of their forecasts are correct?

a. Profits increase 12.5 percent.

b. Profits decrease 11.3 percent.

c. Profits increase 6.7 percent.

d. Profits increase 7.4 percent.


Related Discussions:- The chair business uses price as major competitive factors

Explain single pay off, in a -------------------employees are reward by giv...

in a -------------------employees are reward by given company stock or by being allow to purchase it at a price below market value/1.gain sharing plan/2.individual payoff/3.esop/4.

Stakeholder analysis in an organisation, Question 1: Emmott (1997) repo...

Question 1: Emmott (1997) reports that "by the 1990's the whole issue of employment relationships became much more subtle". The concentration now is on the relationship between

Make an aggregate plan using a spreadsheet, Helter Industries, a company th...

Helter Industries, a company that produces a line of women's bathing suits, hires temporaries to help produce its summer product demand. For the current four-month rolling schedule

Characterize the long run equilibrium, 1) characterize the long run equilib...

1) characterize the long run equilibrium of a perfectly competitive industry in which average costs are U-shaped as output increases, under both restricted and free entry. b)Discus

Explain google''s customer value proposition, Describe Google's customer va...

Describe Google's customer value proposition and profit formula linked to its business model. What strategies has Google relied upon to build competitive advantage in the industry?

Identify the most vital factors in each perspective, Summarize the classica...

Summarize the classical, behavioural and quantitative perspectives on management Identify the most important factors in each perspective

Explain the organizational structure that results, Describe the organizatio...

Describe the organizational structure that results from each of the different bases of departmentalization?

Explain project supply and materials budget, Case 11-3 Budget the topic for...

Case 11-3 Budget the topic for this week's assignment is taken from our text (INF336 2010, Mcgraw-Hill) and refers to the City of Granston Case 11-3 at the end of Chapter 11. Using

Define people to try to justify conduct by the argument, How common do you ...

How common do you think it is for people to try to justify their conduct by the argument that "Everybody's doing it"?

Competitive advantage of t and d for organizations, Go online and research ...

Go online and research the future trends relative to the field of T & D. Consider researching professional organizations such as SHRM or ASTD. What predictions do you find? Where d

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd