Answer:
1. A graphical representation of the relationship between the price of a good and the amount of the good that buyers are willing and able to purchase at various prices.
-Demand Curve
2. The amount of a good that buyers are willing and able to purchase at a given price.
-Quantity Demanded
3. The claim that, other things being equal, the quantity demanded of a good falls when the price of that good rises.
-Law of Demand
4. A table showing the relationship between the price of a good and the amount that buyers are willing and able to purchase at various prices.
-Demand Schedule
Explanation:
Answer:
The profit margin controllable by the Central Valley segment manager is: $ 95,000.
Explanation:
Only items directly controllable by the Manager should be included in the divisional financial performance measure.
<u>Central Valley Division</u>
Revenues $ 405,000
Less Variable Costs :
Variable operating expenses ($ 230,000)
Controllable Contribution $ 175,000
Less Controllable fixed expenses ($80,000)
Controllable Profit $ 95,000
Reasons for shifting production to other countries John Deere is a global leader in the tractor market and its strategic objective is to expand rapidly outside of North America. One of the ways to expand globally is to make the product closer to the target market
Offshoring is the practice of a firm moving its service and production operations to a different nation. A corporation with American roots, John Deere is well recognised for assembling and producing agricultural tractors.
Samuel Allen, the company's CEO, predicts that Offshoring the company's tractor manufacture overseas will boost overall sales to $50 billion by 2018, with half of that amount coming from nations other than the US and Canada. Offshoring production would aid in growing the business to a worldwide scale in addition to boosting revenue.
Due to differences in time zones, the company's production processes and services would be available around the clock. The cost of manufacture would also be reduced by offshore tractor production.
The business would stop paying the costs of transporting tractors from the base production site to foreign nations. The need to exert more control, an effort to reduce risks, and a desire to concentrate on business development are some further justifications for outsourcing.
To learn more about offshoring here,
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Answer:
Effect on income= -$2,100
Explanation:
Giving the following information:
Contribution margin $ 98
Increase in variable cost= $5
Increase in sales= 300 units
<u>To determine the effect on income, we need to use the following formula:</u>
Effect on income= increase in contribution margin for new sales - increase in variable costs
Effect on income= 300*93 - 6,000*5
Effect on income= -$2,100
Answer:
The alternative that should be chosen assuming identical replacement is:
Alternative B.
Explanation:
a) Data and Calculations:
Alternatives:
A B
First Cost $5,000 $9,200
Uniform Annual Benefit $1,750 $1,850
Useful life, in years 4 8
Rate of return 7% 7%
Annuity factor 3.387 5.971
Present value of annuity $5,927.25 $11,046.35
Net cash flow $927.25 $1,846.35
b) Alternative B yields a higher return than Alternative A. Since the two alternatives are based on the same rate of return, Alternative B will bring in a higher annual benefit, even when discounted to the present value.
