Answer:
% unit contribution margin= 33.95% drop
Explanation:
Giving the following information:
Selling price= $3.92
Unitary variable cost= $1.21
New selling price= $3
<u>First, we need to calculate both unitary contribution margin:</u>
Current contribution margin= 3.92 - 1.21= $2.71
New contribution margin= 3 - 1.21= $1.79
<u>Now, the percentage change:</u>
% unit contribution margin= [ 1- (1.79/2.71)]*100
% unit contribution margin= 33.95%
Answer:
D. no control over either the price of pretzels or the wage it pays to its workers.
Explanation:
A competitive market is characterised by many firms that are price takers. Firms that are price takers have no influence over the price they charge for their products; prices are set by the forces of demand and supply.
If the market for pretzels are competitive, the firm cannot set the price for pretzels. If the pretzel stand owner increases the price for pretzels, consumers patronize other pretzel stand owners. There would be no incentive for the pretzel owner to reduce its cost because the pretzel stand owner would be reducing its revenue and reducing its profit
If the market for pretzel makers is competitive, firms have no influence on wages that can be paid to workers.Wages are determined by the forces of demand and supply. If wages are cut, workers move to other firms. There would be no incentive to increase wages because it would increase cost and reduce profit.
Answer: A hostile work environment.
Explanation:
Theresa's work place is a good example of a hostile work environment, as the workers and management of her company are not sensitive to female workers challenges. A hostile work environment is a work environment that makes it hard for an employee to carry out their job task.
Answer:
C. Ignoring shareholders' rights
Explanation:
Corporate governance refers to the way corporate companies are controlled and directed. The board of directors provides corporate governance in a company. Good corporate governance establishes a framework that protects shareholders' rights in the company.
Some of the shareholders' rights include
1. Right to vote
2. Right to transfer ownership
3. Right to dividends
4. Right to inspect corporate documents
The board of directors must ensure fair treatment of all shareholders, including the minority. The board has to put in place mechanisms that address shareholders' concerns and offers redress when their rights are violated.
