Based on the reading, which is the best strategy for John to maintain his profit margins?

John's Place sells furniture and other large discounted household items. John is able to source most of his inventory locally, keeping shipping costs low. Recently, John lost an important local supplier of couches, and now the company must ship couches from a location 1,000 miles away.

A. John can charge much more for his couches, passing the shipping costs onto the couch customer.
B. John can raise prices on all of his furniture and spread the extra shipping costs among customers.
C. John can keep charging the same price and make up the loss over a longer period of time.
D. John can wait until he gets another local supplier and let his couch inventory run out until then.

Question

11-07-2024
Business

Answered

Based on the reading, which is the best strategy for John to maintain his profit margins?

John's Place sells furniture and other large discounted household items. John is able to source most of his inventory locally, keeping shipping costs low. Recently, John lost an important local supplier of couches, and now the company must ship couches from a location 1,000 miles away.

A. John can charge much more for his couches, passing the shipping costs onto the couch customer.
B. John can raise prices on all of his furniture and spread the extra shipping costs among customers.
C. John can keep charging the same price and make up the loss over a longer period of time.
D. John can wait until he gets another local supplier and let his couch inventory run out until then.

Answer :

Other Questions

A simple random sample of n = 1276 salinas residents found that 723 would support a new tax to construct neighborhood libraries. What is the probability of sele

How are 70 and 1/70 related to one another? a. There is no relationship b. They are reciprocals of each other if addedc. They equal 140 if subtracted d. They eq

He didn't have the guts to try it

What is the theoretical probability of the event that a family with two children has one boy and one girl? Make a tree diagram to help solve the problem.A. [tex

Answer the following question in 3-4 complete sentences.In glass art, what are the four main properties it can have? Explain each.

4. De los siguientes polinomios, escoger dos que sean homogéneos y dos heterogéneos:a) [tex]$3a^2b + 4a^3 - 5b^3$[/tex]b) [tex]$a^4 - a^3b + a^2b^2 + ab^3$[

Select the correct answer from each drop-down menu.Given: [tex]x^2 + y^2 = r^2[/tex]Prove: [tex]\cos^2(\theta) + \sin^2(\theta) = 1[/tex]\begin{tabular}{|l|l|}\

What was one characteristic of early European exploration?A. It was safe.B. It was fast.C. It was expensive.D. It was predictable.

If the products of a reaction are [tex]$CO_2$[/tex] and [tex]$2H_2O$[/tex], what is known about the reactants?A. The reactants include substances with only [tex

The volume of a solid right pyramid with a square base is given by [tex]V[/tex]. Which expression represents the height of the pyramid?A. [tex]\frac{3V}{y^2}[/t

GinnyAnswer GinnyAnswer · Answer 1 · 2024-07-11T19:46:36-04:00

Final answer:

The best strategy for John to maintain his profit margins is to raise prices on all furniture items to offset the increased shipping costs for couches sourced from a distant location.

Explanation:

The best strategy for John to maintain his profit margins would be to raise prices on all of his furniture and spread the extra shipping costs among customers. By increasing prices across the board, John can offset the higher shipping costs for the couches that are now being sourced from a location 1,000 miles away. This strategy allows John to maintain his profit margins while still providing a variety of furniture products to customers.

Learn more about Profit Margin Strategy for Furniture Business here:

https://brainly.com/question/38342941