SB 101 Study Guide - Final Guide: Accounting Equation, Brand Equity, Corporate Social Responsibility
Document Summary
High quality to meet customer expectations of having a goodbike. Variable versus fixed production costs in mbs (hourly wages): total costs = fixed costs. + variable costs: fixed costs: business costs that remain constant regardless of the number of units produced; producing more/less units remains same in total; ex. Marketing: variable costs: business costs that varies with the numbers of units produced (change in productivity); ex. Standard capacity unit: road = 1. 0, mountain = 0. 5, youth = 0. 25. Starting capacity on scus: 20,000; can buy more if you want. Least price sensitive- people will pay for a good quality road bike no matter what the price is. Road: high sensitivities: pr, quality, and product speculations, low sensitivities: price, advertising, distribution, and delivery time. Mountain: high sensitivities: advertising, low sensitivities: pr. Youth: high sensitivities: price and advertising, low sensitivities: pr and product speculations. Preferred distribution channel for each bike: bike shops: road (specialty, sports stores: mountain (somewhat specialty, discount stores: youth.
