Walks Softly,Inc

question 52

Multiple Choice

Walks Softly,Inc. sells customized shoes. Currently,it sells 10,000 pairs of shoes annually at an average price of $68 a pair. It is considering adding a lower-priced line of shoes which sell for $49 a pair. Walks Softly estimates it can sell 5,000 pairs of the lower-priced shoes but will sell 1,000 less pairs of the higher-priced shoes by doing so. What is the amount of the sales that should be used when evaluating the addition of the lower-priced shoes?

• A) $177,000
• B) $245,000
• C) $313,000
• D) $789,000
• E) $857,000

Understand the relationship between product differentiation, market segmentation, and the risk of cannibalization.

Grasp the principles behind build-to-order and how it contributes to customized customer experiences.

Understand the concept of home bias in investment decisions and its implications.

Recognize the benefits and risks associated with adding international stocks to a portfolio.

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Definitions:

Radical

Pertaining to fundamental or extreme changes or actions, often in politics or social reform.

Reflexive

An ability to recognize one's own actions and thoughts self-critically as part of the context being analyzed or discussed.

Conversational Procedure

The methods and rules that guide how conversations are conducted, including turn-taking, interruptions, repairs, and other aspects of spoken interaction.

Shyness

Shyness is a feeling of apprehension, lack of comfort, or awkwardness experienced when a person is near, approaching, or being approached by other people, especially in new situations or among strangers.