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sweet [91]
1 year ago
12

What is the relationship between a firm's industry environment and the firm's earning potential?

Business
1 answer:
Damm [24]1 year ago
3 0

An organization is more likely to generate above-average returns the more it can positively impact the environment of its industry.

The general rules of competition that affect all companies that offer comparable goods and services. Industry environment is a concept that Harvard professor Michel E. Porter advanced into the forefront of strategic thinking and company planning. The core of his work, which outlines the five factors that affect industry competition, first appeared in the Harvard Business Review. Strategic managers can link distant issues to their influence on a firm's operating environment with the use of his well-defined analytical framework.

To learn more about firms environment here

brainly.com/question/17494285

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Data gathered from the national youth gang survey indicates that less than _____ percent of gang members are female.
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3 years ago
Casual Essentials, Inc. manufactures two types of team shirts, the Homerun and the Goalpost, with unit contribution margins of $
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Answer:

1. What is the contribution margin per hour of machine time for each type of team shirts?

<em>Homerun = </em> $ 50

<em>Goalpost</em> =  $30

2. What is the optimal mix of team shirts?

Homerun =  50,890

Goalpost  = 3,822

3. What is the total contribution margin earned for the optimal mix?

Total contribution margin earned for the optimal mix = $311,780

Explanation:

<em>1. Contribution margin per hour of machine time for each type of team shirts</em>

<em><u>Homerun</u></em>

Contribution margin per hour of machine = $5 / (6/60)

                                                                     =  $ 50

<em><u>Goalpost</u></em>

Contribution margin per hour of machine = $15 / (30/60)

                                                                     =  $30

<em>2. Optimal mix of team shirts</em>

Determine if <em>machine time</em> is a limiting factor

<u>Demanded Hours</u>

Homerun 0.1 × 50,890  = 5,089

Goalpost 0.5 × 50,890  = 25445

Total Hours Demanded = 30,534

<u>Available Hours</u>

Available hours =1,000 hour × 7 machines

                          =7,000 hours

Demanded Hours > Available hours

Therefore  <em>machine time</em> is a limiting factor

Determine Mix

<em>Rank the T-Shirts based on contribution margin per hour of machine time</em>

Position 1. Homerun = 5,089

Position 2. Goalpost  = 1,911 (takes the remaining hours)

Number of T-Shirts (mix)

Homerun = 5,089 / 0.1 =  50,890

Goalpost  = 1,911 / 0.5 =  3,822

<em>3. The total contribution margin earned for the optimal mix</em>

Homerun =  50,890 × $5 =254,450

Goalpost  =  3,822 × $15 = 57,330

Total                                 = 311,780

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