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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.

You might be interested in
TeleGlobal is an American firm producing TV sets. TeleGlobal imports TV set components from Taiwan and assemb them domestically.
vichka [17]

Answer:

The right choice is Option c (110.0%).

Explanation:

⇒ Effective \ rate \ of \ protection = tariff \ rate \ on \ imported \ finished \ good + price \ of \ Component\times  \frac{(tariff \ on \ imported \ good- tariff \ on \ imported \ component)}{(Price \ of \ finished \ good - Price \ of \ components)}

On estimating the values, we get

⇒                                   = 30 \ percent + (80 \ percent\times 500)\times \frac{(30 \ percent - 10 \ percent)}{500-80 \ percent\times 500}

⇒                                   = 110 \ percent

Note: percent = %

3 0
3 years ago
For which buyer would a lender most likely approve a $200,000 mortgage?
jolli1 [7]
I think the answer is B: a person with a credit score of 760 with a small amount of debt who has had steady employment for many years. 

5 0
3 years ago
Read 2 more answers
The quantity of a good demanded in a given time period increases as the price falls, which is known as:_________
Illusion [34]

Answer:

B) The law of demand

Explanation:

The law of demand states that the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.

Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.

Ceteris paribus means all things being equal.

Says law says supply creates its own demand.

I hope my answer helps you

4 0
3 years ago
Frank age 63 is single and provided all of the support for his daughter Anna age 24 and her son Marvin age 6. Neither Anna nor M
allsm [11]

Frank cannot claim Anna or Marvin as a dependent.

Explanation:

Because Frank gives Anna and Marvin every support, support tests are straightforward.

Anna earns revenue in excess of $4200 and can not therefore be requested as dependent. In fact, Marvin does not stay with Frank and can not therefore be stated as dependent.

The income tax credit, EITC or EIC is a bonus to low- and moderate-income employers. To apply, you must fulfill certain criteria and file a tax report, even if you are not obliged to pay a bill. The level of tax you pay is lowered by the EITC and a refund is probable.

3 0
3 years ago
Volbeat Corporation has bonds on the market with 10.5 years to maturity, a YTM of 6.2 percent, a par value of $1,000, and a curr
densk [106]

Answer:

The answer is 5.47 percent

Explanation:

Firstly, we find coupon payment (PMT).

it can be gotten from the price (present value) of bond formula:

PV = PMT/(1+r)^1 + PMT/(1+r)^2 ....... PMT + FV/(1+r)^n

N = 10.5 years

1/Y = 6.2 percent

PV = $945

PMT = ?

FV = $1000

Using a Financial calculator to input all the variables above,

Annual PMT = $54.72

Semi annual will be $54.72/2= $27.36

Coupon rate is Annual PMT /par value

= $54.72/1000

0.0547 or 5.47 percent

7 0
3 years ago
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