Which of the following is a manufacturer-related service offered by retailers in a one-level
distribution channel structure?
A) setting up new products and services
B) advising customers on products and services
C) gathering information from customers
D) negotiation on final price, as well as loan preparation
C
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Valuable Electronics uses a standard part in the manufacture of different types of radios
The total cost of producing 42,000 parts is $100,000, which includes fixed costs of $40,000 and variable costs of $60,000. The company can buy the part from an outside supplier for $1 per unit and avoid 20% of the fixed costs. Assume that the company can use the freed manufacturing space to make another product that can earn a profit of $16,000. If Valuable outsources, what will be the effect on operating income? A) increase of $42,000 B) decrease of $42,000 C) decrease of $8,000 D) increase of $16,000
A participating company is also referred to as which type of insurer?
A) Re-insurer B) Mutual insurer C) Domestic insurer D) Reciprocal insurer