The opportunity cost of cleaning 2 houses for Reshmi is 2 hours.
What is cost?The cost of doing business can be broken down into three categories: fixed costs, variable costs, and overhead costs. Examples of fixed costs include rent, insurance, salaries, and loan payments. Variable costs are costs that fluctuate with production or sales levels. Examples of variable costs include materials, consumable supplies, and labor costs. Overhead costs are costs that are incurred in running the business, regardless of production or sales levels. Examples of overhead costs include utilities, marketing, and administration.
The cost of doing business can also be broken down into direct costs and indirect costs. Direct costs are costs that are directly related to the production of a product or service. Examples of direct costs include materials, labor, and transportation.
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Bubbly Waters currently sells 300 Class A spas, 450 Class C spas, and 200 deluxe model spas each year. The firm is considering adding a mid-class spa and expects that if it does, it can sell 375 units per year. However, if the new spa is added, Class A sales are expected to decline to 225 units while the Class C sales are expected to increase to 475. The sales of the deluxe model will not be affected. Class A spas sell for an average of $12,000 each. Class C spas are priced at $6,000 and the deluxe models sellfor $17,000 each. The new mid-range spa will sell for $8,000. What annual sales figure should you use in your analysis? a. $3,750,000 b. $750,000 c. $2,250,000 d. $3,000,000 e. $4,050,000
The annual sales figure we should use in our analysis is $11,950,000. The correct answer is not provided in the options given.
To answer this question, we need to calculate the total revenue for each type of spa before and after the addition of the mid-class spa.
Before: Class A spas: 300 x $12,000 = $3,600,000 Class C spas: 450 x $6,000 = $2,700,000 Deluxe spas: 200 x $17,000 = $3,400,000 Total revenue: $9,700,000
After: Class A spas: 225 x $12,000 = $2,700,000 Class C spas: 475 x $6,000 = $2,850,000 Mid-class spas: 375 x $8,000 = $3,000,000 Deluxe spas: 200 x $17,000 = $3,400,000 Total revenue: $11,950,000
Therefore, the annual sales figure we should use in our analysis is $11,950,000. The correct answer is not provided in the options given.
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An international business is a firm that
Part 2
A. hires non-U.S. citizens.
B. produces a wide range of products.
C. is not from the United States.
D. engages in international trade or investment.
Option D: An international business is a firm that engages in international trade or investment.
Therefore, the correct answer is option D. An international business is a company that conducts business across national borders. This can include importing and exporting goods, investing in foreign markets, and operating in multiple countries.
It is not necessarily defined by the nationality of its employees, the range of products it produces, or the country in which it is headquartered. International business refers to the trade of goods, services, technology, capital and/or knowledge across national borders and at a global or transnational scale. It involves cross-border transactions of goods and services between two or more countries.
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What are four things a great résumé shows employers?
Answer:
qualifications, meet the employer's needs, likeable, work well with others, appeal to both human and electronic reviews.
Explanation:
There are four things a great resume shows employers are:
Personal details.Education qualification.Skills.Working experience.What is resume?
The term “resume” is a formal document to present a job applicant with mention of specific details. The resume is a one- or two-page summary of a person's details, such as education, skills, and work experience. The resume is necessary to obtain the job. The resume is the effective to easily apply the job vacancy and selection.
The resume is a one-page summary of the document to cover all the details in the short sentence. The resume is more visual, such as creating the table of the qualifications and adding the passport-sized photo.
Personal information such as name, address, email address, and cell phone number should be included at the top of the resume. They always require that you have the necessary abilities and professional experience.
As a result, the resume must be included the personal details, qualification, skills, and experiences.
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Nathan bought 200 shares of stock at $40 per share ($8,000 total). He paid $5,000 in cash and borrowed $3,000 from the brokerage firm. The loan has an annual interest rate of 6 percent.
Six months later, the stock’s current price is $38 per share. If Nathan sells now, he will pay a commission of $160 and will have to repay the loan. If he sells now, he will lose $ __.00
If Nathan sells now, after paying a commission of $160 and margin account interest of $90, he will lose $650.
What is buying on margin?Buying on margin is a situation when an investor buys an asset by borrowing the balance from the brokerage firm.
With buying on margin, the investor pays part of the investment cost while the remaining is met by the broker.
Data and Calculations:Cost of 200 shares at $40 per share = $8,000
Investor's cash = $5,000
Margin purchase = $3,000
Interest rate = 6%
Interest amount = $90 ($3,000 x 6% x 1/2)
Commission = $160
Total amount spent = $8,250 ($8,000 + $90 + $160)
Total amount realized from sale = $7,600 ($38 x 200)
Loss from sale = $650 ($7,600 - $8,250)
Thus, if Nathan sells now, after paying a commission of $160 and margin account interest of $90, he will lose $650.
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The United States enjoys a free market economy in which _____.
(A)most economic decisions are made by the central government
(B)the states have all of the authority to make economic decisions regarding businesses that do not operate across state lines
(C)most economic decisions are allowed to occur naturally as a result of market changes made by government intervention
(D)none of the above
(E)all of the above
Company borrowed money by issuing of % bonds payable at on July 1, . The bonds are five-year bonds and pay interest each January 1 and July 1
Requirements
1. How much cash did
Kelvin
receive when it issued the bonds payable? Journalize this transaction.
2. How much must
Kelvin
pay back at maturity? When is the maturity date?
3. How much cash interest will
Kelvin
pay each six months?
4. How much interest expense will
Kelvin
report each six months? Use the straight-line amortization method. Journalize the entries for the accrual of interest and the amortization of premium on December 31,
2018,
and payment of interest on January 1,
2019.
1) SonicSonic received $3,237,500 ($3,500,000 x 0.925) in cash when it issued the bonds payable. The journal entry for this transaction is:
Cash $3,237,500
Bonds Payable $3,237,500
2) SonicSonic must pay back the face value of the bonds, which is $3,500,000, at maturity. The maturity date is July 1, 2028 (10 years from the issue date).
3) SonicSonic will pay cash interest of $140,000 every six months. This is calculated as ($3,500,000 x 0.08 x 6/12).
4) SonicSonic will report an interest expense of $175,000 every six months using the straight-line amortization method. This is calculated as ($3,500,000 x (1-0.925) / 20 x 6/12). The journal entries for December 31, 2018, are:
Interest Expense $175,000
Discount on Bonds Payable $35,000
Bonds Payable $140,000
And for January 1, 2019:
Interest Payable $140,000
Cash $140,000
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Full Question: SonicSonic Drive-Ins Ltd. borrowed money by issuing $3,500,000
of 8% bonds payable at 92.5 on July1, 2018. The bonds are 10-year bonds and pay interest each January 1 and July 1.
1. How much cash did SonicSonic receive when it issued the bonds payable? Journalize this transaction.
2. How much must SonicSonic pay back at maturity? When is the maturity date?
3. How much cash interest will SonicSonic pay each six months?
4. How much interest expense will SonicSonic report every six months? Use the straight-line amortization method. Journalize the entries for the accrual of interest and amortization of discount on December 31, 20182018, and the payment of interest on January 1, 2019.
A document that refers to a customer billing for merchandise bought on credit is called a(n):
Answer:
Invoice
Explanation:
A sales transaction can be defined as a business transaction between two or more individuals or organizations, which generally involves the buyer purchasing either a tangible or intangible goods and services from the seller (service provider) through the use of money, credit cards or vouchers.
An invoice can be defined as an accounting document which is used for recording the essential details of the payment of goods and services made by a customer. It is the first step in the sales transaction, as it is expected that the seller or service provider makes it available and issues it for all sales transactions. Also, it is an essential accounting document which serves as an evidence of payment and delivery of goods and services to the customer.
In conclusion, a document that refers to a customer billing for merchandise such as finished goods like television, smartphone, shirt, trouser, cup, radio, furniture, etc., bought on credit is called an invoice.
It is the case taht output levels will be highest when a firm is _____ and lowest It is the case that output levels will be highest when a firm is when it is ______.a. perfectly competitive ; a price-discriminating monopolist b. perfectly competitive : a monopolist c. a price-discriminating monopolist; a monopolistd. a perfectly price-discriminating monopolist; an oligopoly e. an oligopoly: a perfectly price-discriminating monopolist
Correct answer: b. perfectly competitive : a monopolist. Their output levels tend to be lower compared to a perfectly competitive firm.
It is the case that output levels will be highest when a firm is perfectly competitive and lowest when it is a monopolist. In a perfectly competitive market, firms are forced to produce at the most efficient level, maximizing their output to remain competitive. In contrast, a monopolist has the power to restrict output and charge a higher price due to lack of competition.
Therefore, their output levels tend to be lower compared to a perfectly competitive firm.
output levels depend on the market structure and the price and output decisions of the firms1. In general, output levels are highest when the market is perfectly competitive and lowest when the market is a pure monopoly. This is because in perfect competition, firms produce at the point where price equals marginal cost (P=MC), which is also the point where social welfare is maximized2. In pure monopoly, firms produce at the point where marginal revenue equals marginal cost (MR=MC), which is lower than the socially optimal output level and creates a deadweight loss.
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what form of capital does vodacom obtain
Sheila Marie Abducted by Aliens
Morin company's bonds mature in 8 years, have a par value of $1,000, and make an annual coupon interest payment of $65. The market requires an interest rate of 6. 1% on these bonds. What is the bond's price?
a. $1,147. 71
b. $1,280. 93
c. $1,024. 74
d. $1,096. 47
e. $1,116. 97
Bond price, which is typically represented as a percentage of the face value or par value, is the sum that investors are ready to pay for an existing bond.
Bond yields and prices move in opposite directions, thus when bond prices rise, yields fall, and when bond prices fall, yields rise. Online sources for tracking bond market news and data abound, and official websites like Treasury Direct offer details on bonds and note prices and interest rates.
We must determine the present value of all future cash flows (such as coupon payments and the principal payment at maturity) discounted at the 6.1 percent needed rate of return in order to determine the bond's price.
The formula to calculate the present value of the bond is as follows:
Bond Price = (Coupon Payment / \((1 + r)^{1}\)) + (Coupon Payment / \((1 + r)^2\)) + ... + (Coupon Payment + Face Value / \((1 + r)^n\))
Here, r is the required rate of return and n is the number of periods.
On putting the values in the above equation, we get,
Bond Price = (65 / \((1 + 0.061)^1\)) + (65 / \((1 + 0.061)^2\)) + ... + (65 + 1000 / \((1 + 0.061)^8\))
Bond Price = $1,147.71 (approximately)
Hence, the bond price is $1,147.71.
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a company hires bradley as a supervisor in the company. it has an implied understanding that both the employer and the employee have the right to end their relationship at any time they desire. in the context of personnel policies, the relationship between the company and bradley is based on the
The relationship between the company and Bradley is based on an "at-will" employment arrangement.
At-will employment means that either the employer or the employee can terminate the employment relationship at any time, for any reason, without the need to provide notice or a reason for the termination.
The concept of at-will employment is a common practice in many countries, including the United States. It is based on the principle of freedom of contract, which allows employers and employees to enter into agreements that are mutually beneficial to both parties.
At-will employment provides employers with flexibility in managing their workforce, as they are not obligated to continue employing workers who are not meeting their expectations or are no longer needed. At the same time, it provides employees with the freedom to seek other employment opportunities if they are unhappy with their current job or working conditions.
It is important to note that even in an at-will employment arrangement, there are still legal restrictions on terminating an employee for certain reasons, such as discrimination or retaliation for engaging in protected activities. Additionally, some states or countries may have laws that limit the scope of at-will employment, such as requiring employers to have just cause for terminating an employee.
In summary, the relationship between the company and Bradley is based on an at-will employment arrangement, which allows either party to terminate the employment relationship at any time, for any reason, without the need to provide notice or a reason for the termination.
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Koontz Company uses the perpetual inventory method and the weighted-average method. On January 1, Year 1, the company's first day of operations, Koontz purchased 416 units of inventory that cost $7.50 each. On January 10, Year 1, the company purchased an additional 624 units of inventory that cost $9.00 each. If the company sells 550 units of inventory, what is the amount of inventory that would appear on the balance sheet immediately following the sale
The amount of inventory that would appear on the balance sheet immediately following the sale is $4,281.44.
Under the perpetual inventory method and the weighted-average method, the cost of goods sold (COGS) and the ending inventory are calculated based on the average cost of all units available for sale during the period. To calculate the average cost per unit, we first need to find the total cost of all units available for sale.
Total cost of inventory on hand on Jan 1: 416 units x $7.50 = $3,120
Total cost of inventory purchased on Jan 10: 624 units x $9.00 = $5,616
Total cost of all units available for sale: $3,120 + $5,616 = $8,736
Next, we divide the total cost by the total number of units available for sale:
Average cost per unit = Total cost / Total units available for sale
Average cost per unit = $8,736 / (416 + 624) = $8.736
Using the average cost per unit, we can calculate the cost of goods sold for the 550 units sold:
COGS = 550 units x $8.736 = $4,804.80
The remaining units in inventory would be:
Total units available for sale - Units sold = 1,040 - 550 = 490 units
To find the value of the ending inventory, we multiply the remaining units in inventory by the average cost per unit:
Ending inventory = 490 units x $8.736 = $4,281.44
Therefore, the amount of inventory that would appear on the balance sheet immediately following the sale is $4,281.44.
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definition of post school destinations
It can be noted that post school destinations simply means where a person is going when he or he leaves school.
What is a destination?It should be noted that a destination simply means the place that an individual is going to.
Post school destinations simply means where a person is going when he or he leaves school. This simply means after school destination.
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Most licensed architects are members of which association? A. ACSA B. AIA C. NAAB D. NCARB E. NVOB
Answer: It is B. AlA
Explanation:ALA is open to all architects and professions related to architecture. Our members hold individual memberships and specialize in all types of architecture.
Marketing can occur even if an exchange does not occur. When Sally Rodriguez sold her car, she put an ad in the local newspaper and allowed potential customers to test drive the vehicle. Sally engaged in marketing by _______, even if no one bought her used automobile.
Sally engaged in marketing by advertising, even when nobody bought her used automobile.
What is advertising?Advertising can be defined as a marketing technique that involves the use of promotional multimedia messages that are designed and developed with the intention of making the products (goods) or services offered by a business firm or an entrepreneur to become known and familiar to all of its customers and potential customers.
In this scenario, Sally Rodriguez put an advertisement in the local newspaper to make it known to potential customers and as such she's engaging in marketing.
In conclusion, Sally engaged in marketing by advertising, even when nobody bought her used automobile.
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Sydnee would like a chart to appear once in her report, but she is having trouble making this occur. She does not understand why the chart is showing multiple times in the report. What is most likely causing the problem?
The chart is placed in the header and footer of a database.
The chart is placed in the field of a database.
The chart is placed in a database with one group.
The chart is placed in a database with five groups.
Answer:
The chart is placed in a database with five groups.
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2) Explain using welfare measures whether consumers prefer a single price monopoly or a perfectly price discriminating monopoly.
Welfare measures refer to measures used by the government to evaluate social welfare. Welfare measures could include consumer surplus, producer surplus, deadweight loss, and total surplus.A single-price monopoly is a market in which a single firm controls the entire market and sells at a single price.
A perfect price-discriminating monopoly is a market in which a single firm controls the entire market and charges different prices to different customers based on their willingness to pay. The price for each customer is equal to their marginal benefit.
Considering consumer surplus, a single-price monopoly will produce less of the good compared to a perfect price-discriminating monopoly. Consumers in a single-price monopoly market will experience a lower level of welfare as their surplus is reduced, while a perfect price-discriminating monopoly maximizes the consumer surplus.
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What is the research and development department?
Research and development (R&D) activities are characterized as imaginative and methodical labor carried out to add to the body of information, including an understanding of people, culture, and society, and to create new applications based on the knowledge already in existence.
For progress to be meaningful, research is essential. Development efforts would be pointless without research. Depending on the demands that already exist and the desired outcomes, many types of research may be done.
The outcomes will be more accurate and dependable the more rigorous the study design and thorough implementation. By offering market insights and creating new services/products or upgrading existing ones in response, an R&D department's job is to keep a corporation competitive.
The R&D division will play a significant role in how the company expands in the future. A variety of duties will fall under the purview of the R&D division.
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What are three ways to discover how to involved in your chosen career field
Answer:
Research industry information. ...
Find out about professional associations. ...
Research career options using LinkedIn.
ch of the following is true for the law of supply? a. sellers increase the quantity of a good supplied as price increases. b. buyers decrease the quantity of a good purchased as price increases. c. a decrease in price results from more demand. d. price decreases as more units are supplied.4
According to the law of supply and demand, a product's price should decrease as demand rises.
The inverse link between price and amount desired is demonstrated by the law of demand. If the price goes up, the quantity needed should go down as well. Additionally, if the price drops, the amount demanded should go up. Additionally, the other elements, such as preference, etc., should not change. Therefore, we can draw the conclusion that according to the rule of demand, a product's price should decrease if demand for it rises. The law of supply and demand combines two key economic ideas to describe how changes in the price of a resource, item, or service affect its supply and demand. When the price rises, demand declines while supply grows. In contrast, as the price declines, supply is restrained and demand is enhanced.
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A new cattle feed has been found to increase the amount of milk each cow produces. Which of these is a likely impact in the market for milk, if this cattle feed is used by most of the dairies?â
Select one:
a. An increase in the demand for milk
b. An increase in the price of milk
c âA leftward shift of the supply curve for milk
d. A decrease in the quantity demanded of milk
e. A rightward shift of the supply curve for milk
The correct answer is: e. A rightward shift of the supply curve for milk. This is because the new cattle feed improves each cow's milk production, leading to a higher quantity of milk being supplied at each price level.
Your question is about the likely impact on the milk market if a new cattle feed, used by most dairies, increases the milk production per cow. If the new cattle feed is found to be effective and is used by most dairies, the likely impact in the market for milk would be an increase in the supply of milk. With more milk being produced by each cow, the overall supply of milk would increase. This would result in a rightward shift of the supply curve for milk. However, the demand for milk may not increase proportionally with the increase in supply. Therefore, the price of milk may decrease due to the surplus of milk in the market. This would lead to a decrease in the price of milk, as the market would be flooded with an excess of milk. Overall, the use of the new cattle feed may lead to a more competitive market for milk. The increased supply may lead to lower prices for consumers, but could also result in lower profits for dairy farmers. Therefore, the impact of the new cattle feed on the market for milk would depend on a range of factors, including the responsiveness of consumers to price changes and the cost of producing the new cattle feed. As a result, the supply curve for milk shifts to the right, indicating an increase in the overall supply of milk in the market.
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Which of the following is a characteristic of a service?
A. Can be stored
B. Can be repeated in exactly the same way
C. Mass produced
D. Intangible
Answer:
D.Intangible
Explanation:
Because three characteristics of service are: intangibility, inseparability, variability
The correct answer is D. Intangible. is a characteristic of a service
What are servicesServices are intangible in nature. This means that they do not have a physical presence and cannot be touched or held like physical goods. This is one of the key characteristics that differentiates a service from a product.
Options A, B, and C are typically characteristics of goods, not services:
A. Services cannot be stored for later use like physical goods.
B. Due to the human aspect involved in delivering services, they may not be repeated in exactly the same way each time.
C. Services are generally customized to the individual customer and are not mass-produced in the same sense as physical goods.
Option D is therefore a service characteristic.
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Which job in the Finance career is ideal for a person just out of high school and seeking on-the-job training?
Bank Teller
Actuary
Personal Finance Advisor
Business Finance Advisor
Answer:
Bank teller
Explanation:
I took the test. Also, you only need a high school diploma for bank teller, and you need a bachelors degree for all of the others!
The job in the Finance career is ideal for a person just out of high school and seeking on-the-job training is bank teller. The correct option is (A).
What do you mean by the Bank teller?An employee of a bank whose duties include handling customer cash and negotiable instruments is known as a bank teller. This employee may also go by the titles of cashier or customer service agent.
They are more likely to identify and halt fraudulent transactions because they are front-line employees, preventing losses for a bank (counterfeit currency and cheques, identity theft, confidence tricks, etc.).
Tellers must also be outgoing and engage with the public in order to inform them about their accounts and other banking services.
Therefore, the job in the Finance career is ideal for a person just out of high school and seeking on-the-job training is bank teller.
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What is deliberate and purposeful choice to speak up for personal needs and or ideas
Purposeful practice is intended to enhance performance and is defined by remaining committed and upbeat, establishing precise objectives, scheduling time each week, accepting challenges that are above your current level of competence, and asking for feedback.
What is intentional speaking?Deliberately means to carefully consider something or to speak about it; it also refers to the cautious decision-making process' slow and controlled speed.
What is communication purposeful practice?Deliberate practice is described as deliberate action that is effortful in character, conducted frequently without immediate reward, and has as its primary objective the enhancement of one's own performance rather than enjoyment.
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If the san diego opera decreases the price of their opera tickets and their total revenue falls, then this suggests that, at the original price, the demand for tickets to the san diego opera was:_________
If the san Diego opera decreases the price of their opera tickets and their total revenue falls, then this suggests that, at the original price, the demand for tickets to the san Diego opera was: inelastic.
The San Diego Opera Association (SDO) is a professional opera company based in San Diego, California. Founded in 1965, it presents opera under the name San Diego Opera. It is a member of the OPERA America Professional Association, which ranks among the top ten opera companies in the United States.
The company he incorporated as the San Diego Opera Guild in 1950. Starting with his 1965 La Bohème, SDO produced its own work. From the beginning, the company performed at the San Diego Civic Theater in downtown San Diego. Five operas were performed each season until the 2008 recession. In 2008, this was reduced to his four productions which he had scheduled from January to April.
In March 2014, the Opera Board announced that the 2014 season would be it's last, but this decision was later overturned by the company's board and a shortened 2015 season, already planned, was announced. , the number of titles increased. From 4 to 3. David Bennett of Gotham Chamber Opera was hired as general director.
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How does a trade deficit occur?
Answer:
It is an economic condition that occurs when a country is importing more goods than it is exporting.
Explanation:
Answer:
It is an economic condition that occurs when a country is importing more goods than it is exporting.
Explanation:
in a large public corporation, evaluating internal control procedures should be the responsibility of
The Board of Directors. Internal control procedures should be evaluated regularly to ensure that they are effective and that any weaknesses are identified and corrected.
What is Internal control?Internal control is a system of activities and procedures used by an organization to help ensure that the organization's objectives are met. It is designed to provide reasonable assurance regarding the achievement of the organization's objectives in terms of reliability of financial reporting, effectiveness and efficiency of operations, and compliance with applicable laws and regulations. Internal control involves the coordination of activities and procedures within the organization and is usually managed by the organization's management team.
This is a key responsibility of the Board of Directors, who should be able to provide oversight and guidance on internal control procedures. The Board should also be well-informed of the various risks that the organisation faces and ensure that appropriate procedures are in place to mitigate them.
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Question 26 Listen A manufacturer is considering a switch from manufacturers' representatives to an internal sales force. The following cost estimates are available. Manufacturers' reps are paid 7.9% commission and incur $645,000 in fixed costs, while an internal sales force has fixed costs projected at $2,080,000 and would receive 3.0% commission. At what sales volume would the manufacturer be indifferent between the two alternatives? Report your answer in dollars. Your Answer: Answer Question 27 4) Listen ► A manufacturer is considering a switch from manufacturers' representatives to an internal sales force. The following cost estimates are available. Manufacturers' reps are paid 8.8% commission and incur $600,000 in fixed costs, while an internal sales force has fixed costs projected at $1,750,000 and would receive 3.3 % commission. Assume that sales revenue is double the breakeven volume or the point at which the manufacturer would be indifference between reps and an internal sales force. At this volume, how much would the manufacturer save, assuming the company had switched to an internal sales force? Report your answer in dollars. Your Answer:
The manufacturer would be indifferent between manufacturers' representatives and an internal sales force at a sales volume of approximately $29,285,714.29. The savings achieved by switching to an internal sales force at double the breakeven volume can be calculated using the provided cost estimates.
To determine the sales volume at which the manufacturer would be indifferent between manufacturers' representatives and an internal sales force, we need to equate the costs of both options.
For the manufacturers' representatives:
Total cost = Commission + Fixed costs
Total cost = 7.9% of sales + $645,000
For the internal sales force:
Total cost = Commission + Fixed costs
Total cost = 3.0% of sales + $2,080,000
To find the sales volume, we set the total costs of both options equal to each other:
7.9% of sales + $645,000 = 3.0% of sales + $2,080,000
Subtracting 3.0% of sales from both sides gives:
4.9% of sales + $645,000 = $2,080,000
Subtracting $645,000 from both sides gives:
4.9% of sales = $2,080,000 - $645,000
4.9% of sales = $1,435,000
Dividing both sides by 4.9% gives:
sales = $1,435,000 / 4.9%
sales ≈ $29,285,714.29
Therefore, the manufacturer would be indifferent between manufacturers' representatives and an internal sales force at a sales volume of approximately $29,285,714.29.
For the second question, we need to find the savings achieved by switching to an internal sales force at double the breakeven volume.
Assuming the breakeven volume is the sales volume at which the manufacturer would be indifferent, which is $29,285,714.29, we can calculate the savings.
Savings = Total cost with manufacturers' reps - Total cost with internal sales force
Savings = (8.8% of sales + $600,000) - (3.3% of sales + $1,750,000)
At the breakeven volume, the sales would be $29,285,714.29:
Savings = (8.8% of $29,285,714.29 + $600,000) - (3.3% of $29,285,714.29 + $1,750,000)
Calculating this equation will give the amount saved by switching to an internal sales force.
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In the rural farming town of York Springs, Smith's was the only grocery store and Lehman's was the only animal feed mill. How would you describe these businesses
Both Smith's grocery store and Lehman's animal feed mill are essential businesses in the town of York Springs, serving the needs of the community and contributing to the local economy.
Smith's grocery store and Lehman's animal feed mill are both essential businesses in the rural farming town of York Springs. Smith's grocery store provides a vital service to the community by supplying fresh produce, meat, and other food items to its customers.
As the only grocery store in the area, Smith's plays a crucial role in ensuring that the residents of York Springs have access to the food and supplies they need to live comfortably. The store likely has a close relationship with the local farmers and suppliers, ensuring that their shelves are stocked with local produce and products.
Lehman's animal feed mill is also a vital business in the town, as it provides the necessary feed for the many farms in the area. This feed mill likely produces a variety of animal feeds, such as cattle, poultry, and hog feed, to meet the diverse needs of the local farmers. With the mill being the only one in the area, it is likely that it has a loyal customer base that relies on its quality products and services.
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Company E, a diversified company, is experiencing an economic regression in its country. However, an analysis of the company showed that it could still be profitable in this economic downturn if it divested one of its business units. Which of the following businesses would Company E find it most easy to exit?
a.
the home electronics business, where the company has a large number of fixed costs
b.
the tv industry, where the company has contractual obligations with suppliers
c.
the computer software business, where investments in assets are low
d.
the computer business, where the company’s strategic commitments are long-term
Based on the information provided, the business unit that Company E would find it most easy to exit in the economic regression would be:
c. the computer software business, where investments in assets are low.Since the computer software business has low investments in assets, it implies that the company has fewer physical assets tied up in this business unit. This makes it easier for Company E to exit the software business compared to the other options.In contrast, the other options have specific factors that may make them more difficult to exit:a. the home electronics business, where the company has a large number of fixed costs: Exiting this business would require dealing with substantial fixed costs, which could make it more challenging to exit profitably.b. the TV industry, where the company has contractual obligations with suppliers: Exiting this industry may involve breaking contractual obligations with suppliers, which could result in legal or financial consequences for Company E.d. the computer business, where the company's strategic commitments are long-term: If the company has long-term strategic commitments in the computer business, exiting this sector may involve complications, such as breaching contracts or facing penalties for early termination. Therefore, considering the low investments in assets, the computer software business would likely be the easiest business unit for Company E to exit in the current economic regression.
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