Answer:
Option b. a net operating loss occurs.
Explanation:
contribution margin is simply known to be that portion of sales revenue that is yet to be consumed by variable costs and so is an addition to covering the fixed costs. The higher the contribution margin ratio, the more smaller or fewer the units that will need to be manufactured to become profitable. In short, it is sales revenue minus fixed expenses.
Answer:
changes in private savings offset any changes in the government deficit
Explanation:
Ricardian equivalence means that private saving changes offset any changes in the government budget. Therefore, if the deficit increases by 30, private saving also increases by 30 but the trade deficit and the budget deficit will not change.
In case of the Ricardian equivalence, economic agents are assumed to be perfectly rational. According to them, higher taxes are required to repay the debt in case of an increase in deficit-financed government spending.
A Joint Venture is a strategic alliance in which two existing companies collaborate to form a third, independent company.
I had to look for the options and here is my answer:
So based on the given statements above related to the descriptions of Andrews, we can say that the one that best illustrates the current strategy of the company is that ANDREWS IS A BROAD COST LEADER. (This answer is based on the actual options attached to this question.)
