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Jobisdone [24]
3 years ago
6

BrewCo sells coffeemakers for $120 each. The firm currently has variable costs per unit of $65. If BrewCo is able to reduce its

variable cost per unit to $58, its contribution margin ratio will
A. decrease by about 6 percent.
B. decrease by about 8 percent.
C. increase by about 6 percent.
D. increase by about 8 percent.
Business
1 answer:
PolarNik [594]3 years ago
5 0

Answer:

C. increase by about 6 percent.

Explanation:

Since,

\text{Contribution margin ratio}=\frac{\text{Sales-Variable expenses}}{\text{Sales}}

Sales = $ 120,

Original expenses = $ 65

Thus, contribution margin ratio = \frac{120-65}{120}=\frac{55}{120}=0.4583\approx 0.46

New expenses = $ 58,

Thus, contribution margin ratio = \frac{120-58}{120} = \frac{62}{120}=0.5166\approx 0.52

∵ 52 - 46 = 6,

Hence, the CMR is increased by 6%.

OPTION C is correct.

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An individual or company purchaser that sees the benefits-to-status-quo ratio of a new product or service better than the averag
slamgirl [31]

The answer is Early Adopter.

The term "early adopter" refers to an individual or business who uses a new product, innovation, or technology before others.

In other words, an early adopter is an individual who almost always buys new products in a given product category.

Early adopters, therefore, form a category of consumers particularly favorable to the adoption of new products or new technologies.

As part of targeted marketing actions, they can play a driving role in the launch and adoption of a new product, service, or online offer.

For instance, Early adopters are often the first market for a high-tech product in the launch phase.

Hence, An individual or company purchaser that sees the benefits-to-status-quo ratio of a new product or service better than the average customer is an Early adopter.

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8 0
2 years ago
Let’s assume that we are about to appraise a house using the cost approach. The home was originally constructed in the early 190
guajiro [1.7K]

Answer:

$290,000

Explanation:

We start with the cost of building a replica of the house:

building a new house:                 $350,000

plus highest and best use             $25,000

minus perceived value loss          ($20,000)

minus physical deterioration        ($50,000)

<u>minus building obsolescence       ($15,000)  </u>

appraised value                            $290,000

8 0
3 years ago
If a competitive firm can sell a bushel of soybeans for $25 and it has an average variable cost of $24 per bushel and the margin
Liula [17]

Answer: reduce output.

Explanation:

In a competitive market, firms do not have control over the price that they sell their goods in the market but they do have control over their costs. It is recommended to produce/ sell goods at a quantity where Marginal Revenue will equal Marginal cost (MR = MC).

In a Competitive Market, Price is the same as Marginal revenue which means that Marginal revenue here is $25 and the Marginal Cost is $26. At this quantity of output, the Marginal Cost is larger than the Marginal revenue.

Company should therefore reduce output to a quantity where Marginal Cost will equal Marginal revenue.

6 0
3 years ago
People want information communicated quickly and clearly. To make your writing more concise and understandable, avoid flabby exp
mash [69]

Answer:

The best revision for the following sentence is:

B) We have identified a problem with our expense sheet, but we will solve it.

Explanation:

In e-mail, letters, messages, memos, and other business documents intended for a busy audience who appreciates getting the information they need quickly and easily, replacing a phrases with a word  in a formal tone, detracting from adding meaning: "we have identified" instead of: "I am sending" or "we need to inform you", keeping the sentence just as it is with certain rhythm and concise.

Otherwise in option 1. I am sending you this letter to inform you that we have experienced an unexpected surprise within our expense sheet, but we are positively certain we will solve it.

The sentence has a redundant pair:  "send" and "inform", it is “wordy,” and includes irrelevant “fillers” as "unexpected" that makes it lack of conciseness in the substantive information, not getting to the point promptly. I also includes passive voice which is not a grammatical error, but it often leads to using more words than necessary frustrating or confusing the audience; and it has prepositional phrases overuse: "that", within", "but" making this sentence clunky and unclear.

In option A) We need to inform you that we have experienced an unexpected surprise with our expense sheet, but we are midway to an end result.

The sentence has unnecessary modifiers: "unexpected" and "end", and passive voice again.

In option C) I am sending you this letter to inform you that we have a problem with our expense sheet, but we are positively certain we have a solution.

The sentence has unnecessary modifier: "positively".

6 0
3 years ago
Suppose you have two friends who have the same underlying ability, took the same courses in college, and have the same GPA. One
ioda

Answer:

Rational is based on the logical preference. Being irrational does not means that the choice is made based on monetary preference. It is more logical than monetary.

Explanation:

The two friends took same courses in college but after the completion of college degree one decides to go for MBA and other pursues PhD in English. The expected earnings of MBA are higher than PhD but one of friend who chooses the PhD has not considered the logical decision making based on money. He might have chose the PhD because he is more interested in becoming a professor rather than a business professional.

6 0
3 years ago
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