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 ways you expect to use format design, Commercial and personal Websi...

Commercial and personal Websites, as well as print media, design their formats and include visuals for optimal audience appeal. Select a Website or print medium for this reflective

Explain underpin traditional public personnel management, what are the assu...

what are the assumptions that underpin traditional public personnel management

What seasonal relatives would explain this situation, The manager of a fash...

The manager of a fashionable restaurant open Wednesday through Saturday says that the restaurant does about 31 percent of its business on Friday night, 26 percent on Saturday night

Explain points-based incentive program, Like other large airlines, Global A...

Like other large airlines, Global Airlines has a points-based incentive program. Customers who who join Global's FreeMiles program earn points by purchasing tickets from Global or

Describe the leadership style, Discuss the leadership style, visionary, coa...

Discuss the leadership style, visionary, coaching or afflictive, that would be the best in the given situation below and provide support for your choice. 1) A non-profit agency wis

Negative feedback in open system, Negative Feedback in Open System A u...

Negative Feedback in Open System A ubiquitous feature of all open systems is feedback. This is necessary for a system to maintain dynamic equilibrium despite being subjected t

Explain team prior to raising a follow-on fund, How should foster position ...

How should foster position herself and her team prior to raising a follow-on fund?

Explain what ethical considerations your response, Please explain in detail...

Please explain in detail what you would do for the following scenario: A good friend of yours from college who had a wild reputation is applying at your company. The HR manager cat

: Why are services typically more difficult to stand, Ask question : Why ar...

Ask question : Why are services typically more difficult to standardize#Minimum 100 words accepted#

Annual carrying costs per pot are estimated, Garden Variety Flower Shop use...

Garden Variety Flower Shop uses 740 clay pots a month. The pots are purchased at $2 each. Annual carrying costs per pot are estimated to be 30 percent of cost, and ordering costs a

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