Marketing Answers

The company introduced a new product last year for which it is trying to find an optimal selling price. Marketing studies suggest that the company can increase sales by 5,000 units for each £2 reduction in the selling price. The company’s present selling price is £70 per unit and variable expenses are £40 per unit. Fixed expenses are £540,000 per year. The present annual sales volume (at the £70 selling price) is 15,000 units.

The market research has also shown that the product will attract more customers and raise large amount of revenue to the firm in the future. However, there is always a debate within the company accounting department on how to calculate the performance (profit). The chief financial accountant believes that absorption costing does a better job of matching costs with revenues thus presents more accurate profit figure than variable costing.

MY QUESTIONS IS: Whether you agree or not with the argument of the chief financial accountant. Why or why not?

What is the title of the book by Hickson and Macdonald 2001, (different structures that an organization can assume)?

Why many businesses are not relevant anymore in the digital era? Please provide three (3) points with detailed explanations and examples? 

Why is it necessary for business to engage themselves in marketing activities

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Why is it necessary for business to engage themselves in marketing activities

You have been recently recruited as a management accountant and assigned to head the new department.

The company introduced a new product last year for which it is trying to find an optimal selling price. Marketing studies suggest that the company can increase sales by 5,000 units for each £2 reduction in the selling price. The company’s present selling price is £70 per unit and variable expenses are £40 per unit. Fixed expenses are £540,000 per year. The present annual sales volume (at the £70 selling price) is 15,000 units.

The market research has also shown that the product will attract more customers and raise large amount of revenue to the firm in the future. However, there is always a debate within the company accounting department on how to calculate the performance (profit). The chief financial accountant believes that absorption costing does a better job of matching costs with revenues thus presents more accurate profit figure than variable costing.

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What is market research

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