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kondaur [170]
3 years ago
7

The cost to manufacture one unit of Killian Audio Products' best-selling hearing aid, the Zone, is $67.50. The CFO of the compan

y determines that if the company expands the output of its biggest U.S. plant by 20 percent, the unit cost would be only $42.50. This analysis is based on the concept of
Business
1 answer:
ikadub [295]3 years ago
4 0

Answer:

Economies of scale

Explanation:

Economies of scale refers to reducing total costs per unit by increasing total output. All companies have certain fixed costs, some companies have higher fixed costs than others, but they always exist. When you are producing something, the cost equation is production costs = variable costs per unit + average fixed costs per unit.

Variable costs vary directly with output, while fixed costs do not, e.g. salaries can be fixed, depreciation, rent, interests, etc. The higher the output, the lower the average fixed cost per unit.

Also, sometimes variable costs can also decrease as total output increases. E.g. you can get higher discounts for purchasing larger quantities of materials and supplies.

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The "swish" design for Nike is a _[blank]_.
Rina8888 [55]

brand mark, it is one of the most well known brand marks

4 0
3 years ago
Read 2 more answers
Peng Company is considering an investment expected to generate an average net income after taxes of $2,600 for three years. The
daser333 [38]

Answer:

NPV = $-42,124.72

Explanation:

The new present value of after tax cash flows from an investment less the amount invested.

NPV can be calculated using a financial calculator:

Cash flow in year 0 =  $-54,000

Cash flow each year in year 1 and 2 = $2,600

Cash flow in year 3 = $2,600 +  $7,200 = $9,800

I = 10%

NPV = $-42,124.72

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

3 0
3 years ago
Access to local partner's knowledge and shared development costs and risks are advantages of which foreign market entry mode
balandron [24]
Joint ventures have access to local partner's knowledge and shared development costs and risks are advantages in this foreign market entry mode. A joint venture often gives companies access to new markets. Two or more companies come together to benefit themselves and stay their own company. 
4 0
3 years ago
Red Blossom Corporation transferred its 40 percent interest to Tea Company as part of a complete liquidation of the company. In
skelet666 [1.2K]

Answer:

$200,000 and $500,000      

Explanation:

The computations are shown below:

For gain recognized:

= Fair market value of the received land - corporation basis

= $500,000 - $300,000

= $200,000

For land basis received by Red Blossom corporation:

= $500,000

It records only the fair market value of the land, not the land basis for tea Company so only $500,000 would be considered

8 0
3 years ago
We sign two new customers out of every seven people with whom we speak. Our goal is to sign 120 new customers. How many people w
Mila [183]
420 is what I got. if you do two divided by 120 it gives you 60 then 60 times 7 is 420.
6 0
3 years ago
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