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3 years ago

Which best explains why producers choose to specialize? Check all that apply.

Business

1 answer:

Y_Kistochka [10]3 years ago

6 0

Answer:

1. to gain a comparative advantage

2. to increase efficiency

Explanation:

Specialization involves concentrating on producing a few items that once can produce better than others.

Specializing in producing a few preferred goods and services makes a person, company, or country more efficient in resource usage. They consume fewer inputs, such as labor, while making the goods and services. The use of fewer inputs is increasing efficiently, which makes their products cost less compared to competitors.

Specialization makes a company or individual an expert in what they do. Experts make quality products. High quality at competitive prices gains a country or company comparative advantage over the others.

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Birch Company normally produces and sells 43,000 units of RG-6 each month. RG-6 is a small electrical relay used as a component

Varvara68 [4.7K]

Answer:

a)No, the company should not close the plant; it should continue to operate at the reduced level of 28,000 units, because it would lead to a $199320 greater loss over the two-month period than if the company continues to operate. By closing down, the needs of these customers will not be met and they would move to another supplier

b) 9880 units

Explanation:

Contribution margin = selling price - variable cost = $30 - $19 = $11

Contribution margin lost = 14000 units / month * 2 months = 28000 units

Contribution margin lost by the plant closing = 28000 units * $11 = $308000

Fixed manufacturing overhead cost * number of months = $60,000 per month × 2 months = $120,000

Fixed selling cost = fixed selling costs total * 8% = $46000 * 0.08 = $3680

Costs avoided by closing the plant for two months = $120000 + $3680 = $123680

Net disadvantage before start up cost = Contribution margin lost by the plant closing - Costs avoided by closing the plant for two months = $308000 - $123680 = $184320

Start up cost = $15000

Closing plant disadvantage = Net disadvantage before start up cost + Start up cos = $184320 + $15000 = $199320

No, the company should not close the plant; it should continue to operate at the reduced level of 28,000 units, because it would lead to a $199320 greater loss over the two-month period than if the company continues to operate. By closing down the 28000 units produced would be lost, the needs of these customers will not be met and they would move to another supplier

b) Costs avoided by closing the plant for two months = $123680

less Start up cost = $15000

Net avoidable cost = $123680 - $15000 = $108680

Net avoidable cost/ Contribution margin per unit = $108680 / $11 = 9880 units

7 0

3 years ago

Managerial accountants could prepare all of the following reports except a.a sales report targeting monthly sales and potential

lisabon 2012 [21]

Answer: d.an annual report for external regulators such as the SEC

Explanation:

A managerial accountant is someone who records and analyzes the financial information for an organization. The data analysed will then be used to form financial decisions which can help the organization's growth.

Managerial accountants prepared ls financial information for internal reporting and not external reporting. Therefore, of the options given, the managerial accountants can prepare all the reports except the annual report for external regulators such as the SEC.

5 0

3 years ago

In a forecasting model using simple moving average, the shorter the time span used for calculating the moving average, the close

horsena [70]

It is true that ''In a forecasting model using simple moving average, the shorter the time span used for calculating the moving average, the closer the average follows volatile trends''.

There are three fundamental categories: causal models, time series analysis and projection, and qualitative approaches. The first makes use of qualitative data (such as the judgement of experts) and details about noteworthy occasions of the sort already discussed, and may or may not take historical factors into account.

Although there are many commonly used quantitative budget forecasting tools, in this article we concentrate on the top four techniques: Straight-line, moving average, simple linear regression, multiple linear regression, and straight-line.

The Global Forecast System (GFS) of the National Weather Service and the European Center for Medium-Range Weather Forecast (ECMWF) model are the two most well-known NWP models. The American and European models are other names for them.

Learn more about forecasting model:

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4 0

1 year ago

Presented below is information related to Windsor Company at December 31, 2020, the end of its first year of operations.

iragen [17]

Answer:

(A) $144,960

(B) $109,890

(D) $102,220

Explanation:

(A) The income from operation can be calculated as follows

= Sales - cost of good sold -selling and administrative expenses

= $333,190-$138,130-$50,100

= $144,960

(B) The net income can be calculated as follows

= Sales - gain in sales of plant assets -cost of good sold-selling and administrative expense - interest expenses

= $333,190-28,720-138,130-50,100-6,350

= $109,890

= Net income + unrealized gain on available for sale investment -loss in discontinued operation

= $109,890+ $10,340-$13,060

= $107,170

(D) The retained earnings balance at December 31, 2014 can be calculated as follows

= comprehensive income - Dividend declared and paid

= $107,170 - $4950

= $102,220

5 0

3 years ago

Which of the following would be most likely to occur in the year after Congress, in an effort to increase tax revenue, passed le

Rufina [12.5K]

Answer:

Companies' cash positions would decline.

Explanation:

A cash position is the amount of cash that a company has on its books at a specific time.

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3 years ago