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4 years ago

Which of the following should you NOT do when collecting and evaluating data on your market?

1 answer:

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You should avoid only looking for information that supports your initial idea (confirmation bias). Instead, you should gather all the relevant data and then make your conclusions.

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Creswell Corporation's fixed monthly expenses are $30,000 and its contribution margin ratio is 63%. Assuming that the fixed mont

nasty-shy [4]

Answer:

Net income= $27,960

Explanation:

Giving the following information:

Fixed costs= $30,000

contribution margin ratio= 0.63

Sales= $92,000

First, we need to calculate the total contribution margin:

Total contribution margin= 92,000*0.63= 57,960

Now, the net income:

Net income= 57,960 - 30,000

Net income= $27,960

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4 years ago

A small firm intends to increase the capacity of a bottleneck operation by adding a new machine. Two alternatives, A and B, have

Ronch [10]

Answer:

Alternative A : 7,800 units

Alternative B: 5,250 units

Explanation:

$\frac{Fixed\:Cost}{Contribution \:Margin} = Break\: Even\: Point_{units}$

Were:

$Sales \: Revenue - Variable \: Cost = Contribution \: Margin$

for A:

15 - 10 = 5 contrbution margin

each unit contributes 5 dollars

then: $39,000 fixed cost / $5 per unit = 7,800 units

It need to sale 7,800 untis to pay the fixed cost generated for alternative A

for B:

15 - 11 = 4 contribution margin

each unit contributes 4 dollars

then: $21,000 fixed cost / $4 per unit = 5,250

It need to sale 5,250 units to pay the fixed cost for this alternative

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3 years ago

A $5 tax levied on the buyers of pants will cause the_______

otez555 [7]

Answer:

Option c. the demand curve for pants to shift down by $5.

Explanation:

Option C is the correct answer because tax levied on the buyer will increase the price of pants. Thus, as per the law of demand or law of demand states that there is an opposite relationship between the price of commodity and quantity demanded. The levied tax on the buyer will induce the buyer to demand less. Consequently, the demand curve shift downward.

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3 years ago

Becton Labs, Inc., produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an ela

Dmitry [639]

Answer:

Material Price Variance= $ 11640 favorable

Material Quantity Variance= $6800 Unfavorable

Explanation:

Becton Labs, Inc.

Standard Quantity= 2.6ounce * 3600 units = 9360 ounces

Actual quantity used: Purchases Less Ending Inventory 13000 ounces- 3300 ounces= 9700 ounces

Actual price : $244,400/13,000= $ 18.8

Standard price : $ 20.00

Material Price Variance= (Actual Price * Actual Quantity)- (Standard Price * Actual Quantity)

Material Price Variance= ($ 18.80 * 9700)-($20.0 *9700)= $ 182360- $ 194000= 11640 Favorable

Material Price Variance= $ 11640 favorable

Material Quantity Variance= (Standard Price * Actual Quantity)-(Standard Price * Standard Quantity)

Material Quantity Variance=($20 *9700)-($ 20 * 9360)

Material Quantity Variance=$ 194000-187200= 6800

Material Quantity Variance= $6800 Unfavorable

Total direct materials variance= $ 11640 favorable -$6800 Unfavorable

Total direct materials variance= 4840 favorable

2. Yes they should as he is offering less price than the standard price.

Even if more material is used the total material variance is favorable indicating a gain not a loss.

7 0

3 years ago

Which factor endowment would be classified as a basic factor by Michael Porter?

bija089 [108]

Answer:

The correct answer is letter "C": natural resources.

Explanation:

Factor endowment refers to the factors of production -land, labor, capital, and entrepreneurship- a nation has available for manufacturing. Countries with more factors of production available tend to be richer than those that do not. Possessing more factor endowments available can also play a key role for countries to establish a comparative advantage compared to other nations.

Therefore, American economist Michael E. Porter (born in 1947) is likely to consider natural resources a basic factor endowment while skilled labor force, for instance, would be considered as an advanced factor of production.

5 0

3 years ago