Suppose the Digby company shifts focus to only competing in the Thrift and Nano

Question

Suppose the Digby company shifts focus to only competing in the Thrift and Nano segments, while competing on price by reducing costs and passing the savings to the customers, what strategy would they be implementing?

Select: 1

A. Niche differentiation

B. Broad cost leader

C. Niche cost leader

D. Broad differentiation

Baldwin Corp. ended the year carrying $18,497,000 worth of inventory. Had they sold their entire inventory at their current prices, how many more dollars of contribution margin would it have brought to Baldwin Corp.? Select: 1 $10,859,000 $18,497,000 $29,375,000 $39,362,500

Explanation / Answer

1.
It will be niche cost leader as it is focusing on particular segments and also reducing its price to sell below competitors price.

2.
With given information,Baldwin would have earned $18497000 only.

Hence the correct option should be 2nd one.

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