gator, inc. has a 42% share of the $300 million market for gator t-shirts. however, they feel they can do better. after doing research, they found the gator t-shirt industry as a whole spends $50 million a year in marketing efforts. gator, inc. knows its own gross margin is $14.7 million for the year. not satisfied with their 42% share, they decide to try to obtain 45% of the market. is it worth the effort for gator, inc. to attempt the increase in market share, and how much gross margin do they gain or lose in the effort assuming they are successful?

Answers

Answer 1

It does not worth the effort for gator, inc. to attempt the increase in market share, and the amount of gross margin they lose in the effort assuming they are successful is $1,200,000.

Sales revenue per share point = 300 million/100

Sales revenue per share point = $30 million

Firm’s sales = 300 x 42%

Firm’s sales = $126 million

Firm’s Gross Margin per share point = $14.7 million/42 share points

Firm’s Gross Margin per share point = $350,000

Per share of voice point = $50,000,000/100

Per share of voice point = $500,000

Increase in market=42% -45%

Increase in market= 3%

Using 1.5 rule of competitive parity the company would have to spend more money in order to make use of 4.5 additional share of voice points

Additional marketing effort required=$500,000 per share x 4.5

Additional marketing effort required= $2,250,000  

Assuming the company was successful, market share will increase  by 3 share points.

Additional share points yield=350,000 x 3

Additional share points yield=$1,050,000

Gross margin=$1,050,000­- $2,250,000

Gross margin= ­$1,200,000

Based on the above calculation  Gator Inc.  should not increase their market share reason been that they would lose $1,200,000.

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Related Questions

what steps must countries take to transition to a mixed-market economy?

Answers

Answer:

The steps that contries must take to transition to a mixed-market economy is by first establishing a fair labor market, discouraging all foreign investment and opening up trade to other countries.

Suppose that Walmart and Target are selling Sony flat-screen computer monitors for a price of $150 or $200 each. Based on the information in the payoff matrix, does a Nash equilibrium exist?

Answers

Based on the information in the payoff matrix, a Nash equilibrium exists.

Nash equilibrium can be described as the choice market players would make in which they would have no incentive to change their decisions. It is the best outcome for each market player.

Looking at the payoff matrix, the payoff of charging $150 results in the higher profits for both Walmart and Target. Thus, the Nash equilibrium for both stores is to charge $150.

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_______ structures arrange people with diverse occupational specialties into formal groups based on similar products, clients, or geographic regions.

Answers

Divisional structures arrange people with diverse occupational specialties are put together in formal groups by similar products or services, customers or clients, or geographic regions.

what percent of cdc employees are vaccinated cassidy

Answers

According to CDC Director Dr. Walensky, the percentage of CDC vaccinated employees is not known.

This is based on the interview conducted by Senator Cassidy on the situation of the coronavirus vaccine.

In the interview, Senator Cassidy asked Dr. Walensky a series of questions concerning the vaccines, including the number or percentage of CDC ( Centers for Disease Control and Prevention) employees that have been vaccinated.

Dr. Walensky responds that “I don’t have that for you today, " which implies that it is not known at that moment.

Hence, in this case, it is concluded that the correct answer is "It is not known."

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why should we emphasize Black Friday?

Answers

Answer:

i dont know

Explanation:

it only happens once a year

The _____ of a firm uses information from the sales budget and various cost budgets to develop a forecast of net earnings for the planning period.

Answers

According to business management roles, the "financial manager" of a firm uses information from the sales budget and various cost budgets to develop a forecast of net earnings for the planning period.

This is because the financial managers are the individuals in a firm whose role or responsibility is to ensure that the organization is functioning well financially.

Their roles usually involve providing the financial guidance, developing financial reports, making direct investment activities, etc.

Hence, in this case, it is concluded that the correct answer is "Financial Manager."

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A payment made by a firm to its owners in the form of new shares of stock is called a _____ dividend.

Answers

That type of payment is a stock dividend.

1. Which product type (coffee/ espresso/ herbal tea/ tea) yields the maximum profit in each market size(major/small)? (2 points).

Answers

Coffee is the maximum profit

50 POINTS

Abdul works as a regulator at the Bereau of consumer protection. His agency makes sure consumers are treated fairly. What task might be part of Abduls job at his agency?

A. Drawing up ideas for the new city park
B. drafting a proposal for the state government budget
C.recording information about fraudulent business
D.meeting with heads of state to discuss trade

Answers

Answer:

the answer is D

Explanation:

It is essential to hold a meeting in order to learn about the progress of your business and the attitudes of your employees during work. Although you may think that your employees are treated fairly, this may not be the case at all. so have a face-to-face meeting with your employees and ask them if they are satisfied with the job.If you are the boss you treat your employees fairly if you are not the boss . in cases of unfair treatment you should have a meeting with the boss

Answer:

C

Explanation:

He is consumer protection and a fraudulet means like scams or fraud.

When current output is less than potential output, which of the given monetary policies is the federal reserve (the fed) likely to enact?.

Answers

The federal reserve is likely to enact that reserve requirement should be lower so that there will be a decrease the interest rate in the case when current output is less than potential output.

The Federal reserve does enhance the economy by reducing the interest rate that banks pay each other for overnight loans.

However, if the current output is greater than potential output, then, the FED would try to reduce current output by increasing the interest rate.

In conclusion, the federal reserve is likely to enact that reserve requirement should be lower so that there will be a decrease the interest rate in this case when the current output is less than potential output.

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Teller's checks and personal checks are classified as
O A. drafts
O B. obligors
C. notes
D. certificates

Answers

The awnser to the question is A Drafts

Answer: they are classified as  D) certificates

Explanation:

Your friend Jomaine says a Traditional IRA or 401(k) has the best tax advantages because you don't pay any taxes now, and you can wait until you retire to pay taxes. Why might he be right?

Answers

Government often tax the income of its people. The reason why might he be right is that if an individual expect tax rates to go up or because one is starting your career and your tax bracket would be lower now than what it will be later on.

When an individual is older and in retirement, the person would want to save your money and not have to worry about any taxes.

Tax advantages simply defined as the economic bonus that applies to some accounts or investments that an individual has such as one gotten by statute, tax-reduced, tax-deferred, or tax-free.

Conclusively, An Examples of tax-advantaged accounts and investments are retirement plans, education savings accounts, medical savings accounts etc.

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Decision making in businesses used to be limited to management. Today, lower level employees are responsible for some of these decisions, as information systems make information available to lower levels of the business. Identify the statement that best describes unstructured decisions.

Answers

People often take decisions daily. The statement that best describes unstructured decisions is that Structured decisions are repetitive and routine decisions which are handled procedurally.

Structured decision making is simply referred to as a thoroughly organized analysis of problems so as to make a final decisions that are based mainly on achieving fundamental objectives.

All decision is made up of several primary elements such as management objectives, decision options, knowing beforehand decision outcomes etc.

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Katrine doesn't understand all of the various aspects of automobile insurance and relies on her local independent State Farm Insurance agent to provide her with information. This agent acts as a(n) _____ for State Farm.

Answers

Katrine doesn't understand all of the various aspects of automobile insurance and relies on her local independent State Farm Insurance agent to provide her with information. This agent acts as a(n) intermediary for State Farm.

How does the targeting process in entrepreneurship differ from the targeting process in traditional marketing

Answers

Targeting process in entrepreneurship differ from traditional marketing because the entrepreneurs begin the process with the idea for a new product.

Targeting process refers to process of breaking-down a market into segments to facilitate concentration of marketing efforts on target segments.

An entrepreneur will first seek to come up with a product idea in the targeting process whereas the marketer will seek to identify the market segment to concentrate on.

In conclusion, the targeting process in entrepreneurship differ from traditional marketing because the entrepreneurs begin the process with the idea for a new product.

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A firm using paid, non-personal communication by identified sponsors through various media has chosen to use _ to promote its products.

Answers

Answer: Advertising

Explanation:

Organization do have different ways they promote their products. A firm that is using paid, non-personal communication by identified sponsors through various media has chosen to use advertising to promote its products.

Advertising ia commonly described as any paid, nonpersonal communication via the used of different media by organizations and individuals who are in some way known in the message.

A good and successfully operated campaign needs all activities to be well-coordinated so as to build on one another to increase the overall impact.

Advertising uses a lot of related, well-timed, carefully placed television ads along with print advertising in some magazines and newspaper.

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When you purchase a new computer from apple. Com for yourself to use at school, you are using which model of e-commerce?.

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The model of e-commerce i am using is Business to consumer sales (B2C)

B2C is where buying and selling takes place between buyers and retailers without any middle person.

In B2C, online retailers sells products and services to consumers through the Internet.  Here,  businesses sell products or services directly to consumers online.

Therefore, when you purchase a new computer from apple. Com for yourself to use at school, you are using Business to consumer sales (B2C) model of e-commerce.

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What is not a determinant of ped.

Answers

Answer:

Goods on which consumer spend less proportion of his income has an inelastic demand like a needle and newspaper. But the amount of income of a consumer does not affect the price elasticity of demand. Consumer's income has no relation with the price elasticity of demand for a particular good.

Explanation:

Lexon Corp. produces high-nutrition breakfast products. As it enters into foreign markets, it faces strong pressures for both reducing costs and adapting products for local markets. Based on this, the company should use a

Answers

Since the company faces strong pressures for both reducing costs and adapting products for local markets, it should use a transnational strategy.

A transnational strategy simply refers to a business structure where the global business activities of a company are coordinated through cooperation and interdependence between the head office and local subsidiaries.

Since Lexon Corp faces strong pressures for both reducing costs and adapting products for local markets, it should use a transnational strategy.

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Companies in European countries sometimes compete with imports of their own products at lower prices because of _____. Multiple choice question. different taxes and competitive price structures the flexibility in import quotas the decline of illegal imports and uniform prices lowered tariffs and similar tax benefits

Answers

The importing and exporting activity of a country can affect its GDP, its exchange rate, and interest rates. Companies in European countries sometimes compete with imports of their own products at lower prices because of different taxes and competitive price structures

 A weaker domestic currency often leads to exports and also makes imports more expensive and so therefore, a strong domestic currency boast exports and makes imports cheaper.

Pricing as an active instrument  is often used by firms to sets prices so as to achieve specific goals, including targeted returns on profit and targeted sales volumes.

Taxes that is placed on goods/services have a lot of ways that it influences the prices of that goods and services.

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You are the owner of a local Honda dealership. Unlike other dealerships in the area, you take pride in your "No Haggle" sales policy. Last year, your dealership earned record profits of $1.9 million. In your market, you compete against two other dealers, and the market-level price elasticity of demand for midsized Honda automobiles is -1.2. In each of the last five years, your dealership has sold more midsized automobiles than any other Honda dealership in the nation. This entitled your dealership to an additional 40 percent off the manufacturer’s suggested retail price (MSRP) in each year. Taking this into account, your marginal cost of a midsized automobile is $11,000.


What price should you charge for a midsized automobile if you expect to maintain your record sales?

Answers

The price that should be charge for a midsized automobile if you expect to maintain your record sales is $15,230.77.

Using this formula

Midsized automobile price = Marginal Cost (3×Elasticity) / 1 + (3 × Elasticity)

Let plug in the formula

Midsized automobile price  = $11,000 (3× -1.2) / 1 + (3× -1.2)

Midsized automobile price  = $14,000 × -4.8/ -3.8

Midsized automobile price = $14,000 × 1.384615

Midsized automobile price  = $15,230.765

Midsized automobile price =$15,230.77 (Approximately)

Inconclusion the price that should be charge for a midsized automobile if you expect to maintain your record sales is $15,230.77.

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You are a delivery manager at Blue Bag, a wholesale bakery. The bakery employs two drivers and owns two trucks. Each truck can deliver up to 225 crates of bread per day. The bakery has standing orders for 400 crates a day. As the increasing of your sales, you hire 4 more drivers and own 1 more truck with 2 shifts. Find the increasing percentages to fit with the hires.

Answers

The maximum number of orders the bakery can receive is 675 per day and the percentage of increase is 50%

Taking into account that each truck has a maximum capacity of 225 boxes of bread and that the bakery has 3 trucks. To find the maximum order capacity, multiply the number of boxes of bread by the number of trucks:

225 × 3 = 675

To know what the percentage of increase in the bakery order capacity is, the maximum capacity must be known before acquiring the last truck (450).

Subsequently, to know the percentage of growth with a new truck with respect to the previous capacity, it is necessary to carry out the following operation:

225 × 100 = 22500 22500/450 = 50

According to the above, 225 corresponds to 50% out of 450, that is, the growth in the bakery's order capacity was 50%.

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You want to make sure your account reflects the spending you’ve actually done, so you pull receipts out of your clothes pockets from the last two weeks and find two for Cool Snacks, one for Club Cafe, one from a sale at Clothing Rack, and an ATM slip for a withdrawal of $30.

Answers

Based on the information given, the items that can be reflected in the account activity but that the person cannot account for include bank charges and transactions involving the use of ATMs.

From the complete information, it should be noted that there are bank charges that are charged by the banks.  In this case, the account may not reflect the spending that has actually been done.

Also, there are taxes that are charged on the goods that the person bought. Therefore, this will be reflected on the account activity and will give rise to a higher value than the amount that the person actually spends.

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Which statement best describes the relationship between credit and debt
when you use a credit card?
A. Your debt decreases as you use your credit card more.
B. Your credit decreases as you lower your debt.
C. Your credit stays the same as you lower your debt.
D. Your debt increases as you use your credit card more.

Answers

Answer:

D

Explanation:

it is D because it shows the mention use.as the question did

In which step of the selling process does a salesperson learn as much as possible about a prospective customer before making a sales call

Answers

The step of the selling process that a salesperson learn as much as possible about a prospective customer before making a sales call is: Pre-approach.

Pre-approach selling process can be defined as the way in which a sales person learn more about a prospective customers before approaching the customers.

Pre-approach enables a salesperson to plan ahead by obtaining more facts or information about their target customers before making their presentation or before contacting their customers.

Most salesperson often make use of pre-approach as this will enable them to know more about their client as well help build their confident before approaching their client.

Pre-approach selling process can prevent a salesperson  from making mistakes when carrying out their sales presentation based on the already relevant information the salesperson has at hand.

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The average person usually has between 15 - 30 acquaintances. Please select the best answer from the choices provided T F.

Answers

People often make friends or acquaintances. The average person usually has between 15 - 30 acquaintances is a false statement.

An acquaintances is simply known as an individual familiar to one, but usually not a close friend.

It is often regarded as the state of being acquainted or casually knowing  someone/something  An example of an acquaintance is a person you went to music class with but do not always keep in touch with them on a regular basis.

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Answer:

False

Explanation:

A key contribution of ________ was the identification of the major functions of management which are planning, leading, organizing, and controlling. total quality management administrative management the behavioral viewpoint contingency theory

Answers

Every Firm needs management. A key contribution of  Administrative management was the identification of the major functions of management which are planning, leading etc.

Administrative Management is known to be a type of management that is concerned with managing everything about  the organization.  

They are responsible for planning, organizing, leading, controlling, and coordinating and stating the need for budgets and controls.

Conclusively, this type of management is based on seeks to make an organization that is efficient and effective.

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Many of the meetings in which office workers are involved are informal, small group meetings

Answers

Answer:

false

Explanation:

office meetings are always formal because this is a serious meeting. Every worker is also involved. You can tell by the way they dress the meeting and the way they speak is formal.

enterprise opportunities​

Answers

enterprise hardware.
the industrial Internet of Things.
applications powered by the blockchain.
proactive analytics.
3D printing.
enterprise marketplaces.
domain-specific data science.
augmented reality in industrial settings.

Many online stream services allow customers to use their service of limited for 30 days. This strategy tries to increase the diffusion of a new format of using the service through increasing ________.

Answers

Answer:

trialability

Explanation:

trialability is the strategy used to try to increase the diffusion of new format using the service

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