While competing on price by reducing costs and passing the, Financial Management

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While competing on price by reducing costs and passing the

1. 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?

A. Niche differentiation

B. Broad cost leader

C. Niche cost leader

D. Broad differentiation

2. 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.?

$10,859,000

$18,497,000

$29,375,000

$39,362,500

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