Should highvalu accept the given offer

Assignment Help Marketing Management
Reference no: EM13878399

Special Order Pricing

HighValu Inc. manufactures a moderate-price set of lawn furniture (a table and four chairs) that it sells for $225. It currently manufactures and sells 6,000 sets per year. The manufacturing costs include $85 for materi- als and $45 for labor per set. The overhead charge per set is $35, which consists entirely of fixed costs.

HighValu is considering a special purchase offer from a large retail firm, which has offered to buy 600 sets per year for three years at a price of $150 per set. HighValu has the available plant capacity to produce the order and expects no other orders or profitable alternative uses of the plant capacity.

Required Should HighValu accept the offer?

Reference no: EM13878399

Questions Cloud

Expected selling price : Assume that CAPM is valid. A share of stock is now selling for $105. It will pay a dividend of $7 per share at the end of the year. Its beta is 1. What do investors expect the stock to sell for at the end of the year? Assume the risk-free rate is 7% ..
Determine the amount of each annual payment : On January 1, 2016, you borrow $100,000, at an effective annual interest of 8%. You intend to pay off the loan via annual level amortization payments – however, your first payment will not occur until December 31, 2019. You will make a total of 20 le..
Collateral for different levels of the wage income : Pooh is a country with only two occupations. You can work as a laborer or you can become an entrepreneur, who hires labor and makes profits. To become an entrepreneur, you need a loan of 20,000 pahs (a pah is the unit of currency in Pooh). Suppose yo..
Determine the magnitudes : If F= 30° and the resultant force acting on the gusset plate is directed along the positive x axis, determine the magnitudes of F2 and the resultant force.
Should highvalu accept the given offer : HighValu Inc. manufactures a moderate-price set of lawn furniture (a table and four chairs) that it sells for $225. It currently manufactures and sells 6,000 sets per year. Required Should HighValu accept the offer?
Write a paper for me on google : Write a paper for me on GOOGLE HERE ARE THE INSTRUCTIONS. It should be 5-7 pages long, not counting titles, abstract, references, table of contents, charts and balance sheets. It should be 1500 words of your own writing. Extensive quotes will not ..
Why are some firms large and other firms small : Why are some firms "large" and other firms "small"? Use the concepts of "coordinating costs" in your answer
Amount of interest in five payment of the new mortgage : You take out a 30-year $500,000 mortgage at an effective annual interest rate of 8%. Immediately after your 12th payment, you make an additional principal repayment of $50,000, and then refinance the outstanding balance with a new 15-year mortgage at..
Define terms customer lifetime and customer referral value : Define the terms customer lifetime value (CLV), and customer referral value (CRV). Which of these values do the authors believe is more important for financial success? Why"

Reviews

Write a Review

Marketing Management Questions & Answers

  Identify any considerations you will need to employ to

select a current product with which you are familiar and pitch a new integratedmarketing communication plan imc to your

  Explain rhetoric of the american revolution and its social

Explain Rhetoric of the American Revolution and its Social Impact and Discuss the impact of these revolutionary ideas on American society and how they were manifested in the immediate aftermath of the Revolution's War

  The methods you use will measure the success of your plan

Combine your Strategy and Positioning and Product, Pricing, and Channels papers along with your promotional strategy into a single Marketing Plan. The methods you use will measure the success of your plan

  Press release for the fashion show

Write a press release. The press release is to publicize the Fashion Show Presentation (from a store or designer) that will take place in conjunction with a fundraise/benefit of your choice

  Analysis the frigaliment case

By summary and analysis the Frigaliment case; for maximum credit, you may do additional web-research to further illuminate or explain the case/article

  Explain do marketers customize marketing strategies

Explain Do marketers customize marketing strategies for non-profit and e-commerce consumers differently than other consumers

  Different stage of the product life cycle

Choose two products; each one should currently be in a different stage of the product life cycle. (Explain why you think each product is in the particular stage)

  Explain diversity in entrepreneurship

Explain Diversity in Entrepreneurship and Imagine you are a consultant providing advice to a veteran who wants to start a home-based business

  Culture and perspective of new zealand

Culture and Perspective of New Zealand

  Write a report to evaluate its buying process

write a report to evaluate its buying process from the marketer's point of view using the five stages of the buying decision process

  Explain demographic analysis

Explain Demographic Analysis and How might these two market research sources help a company develop a marketing mix

  What does the term noise mean in marketing with so much

1.what are the similarities and differences between promotional push strategies and promotional pull strategies? what

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