Define line stretching and describe three types of line stretching
What will be an ideal response?
Line stretching occurs when a company lengthens its product line beyond its current range. In a down-market stretch, the marketer introduces a lower-priced line to attract shoppers who want value-priced goods, battle low-end competitors, or avoid a stagnating middle market. In an up-market stretch, the marketer introduces an upscale line to achieve more growth, realize higher margins, or position itself as a full-line manufacturer. Companies serving the middle market might stretch their line in both directions.
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The payback method is a screening device and is rarely used as the sole method for deciding whether to invest in an asset
Indicate whether the statement is true or false
Southwest Sugar, Inc has six processing departments for refining sugar—Affination, Carbonation, Decolorization, Boiling, Recovery, and Packaging
Conversion costs are added evenly throughout each process. Data from the month of August for the Recovery Department are as follows: Metric Tons Beginning Work-in-Process Inventory 0 Started in production 22,000 Ending Work-in-Process Inventory 6,000 Costs Beginning Work-in-Process Inventory $0 Costs added during August Direct materials 520,000 Direct labor 220,000 Manufacturing overhead 125,000 Total costs added during August $865,000 The ending Work-in-Process Inventory is 100% and 85% complete with respect to direct materials and conversion costs, respectively. The weighted-average method is used. How many metric tons of sugar were refined and transferred to the Packaging Department in August? A) 22,000 metric tons B) 6,000 metric tons C) 16,000 metric tons D) 28,000 metric tons