Answer:
Airline 2 offers low prices on long-distance flights and has long service times for its planes between flights.
Explanation:
Low Cost providing strategy is the strategy in which the services are provided at a lower cost and but the quality of service is acceptable, and is in fact good.
Where the price along with quality is decreased the low cost strategy is not followed.
As in the case of Airline 2 the cost is decreased for passengers and at the same time the service is also decreased.
As there is a long gap of time in between the flights.
When the activity level increases by 15%, net operating income in the flexible budget will ordinarily increase by -more than 15% b/c fixed costs do not increase with changes in activity.
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What is Net operating income?</h3>
- Net income in business and accounting is an entity's revenue less costs, depreciation and amortization, interest, and taxes for a certain accounting period..
- Net Operating Income, or NOI for short, exists a formula those in real estate use to quickly calculate the profitability of a particular investment. After deducting essential operational costs, NOI calculates the revenue and profitability of investment real estate property.
- By deducting all annual expenses from income, the NOI formula determines how profitable a potential investment property is over the course of a single year.
- After all costs have been deducted, operating profit displays a company's earnings, excluding the cost of debt, taxes, and some one-time expenses.
- Net income, on the other hand, represents the profit remaining after all costs incurred in the period have been subtracted from revenue generated from sales.
Hence, When the activity level increases by 15%, net operating income in the flexible budget will ordinarily increase by -more than 15% b/c fixed costs do not increase with changes in activity.
To learn more about Net operating income refer to:
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Answer:
the possible income from producing an additional item.
Explanation:
hope this helps if not let me know
, the key determinant of whether the diversification creates value would be: whether the diversification <span>enhances the competitive advantage of either or both of the two businesses
Here is an example of business combination in different sectors that create a value.
Let's say that a mobile manufacturer called company x (from electronic sector) combines its-self with an animation company (from entertainment sector).
Company x could obtain value from this combination by rewarding free movie/tv shows subscription for every mobile phone that they sold. By doing this, the sales in both sectors will be increased
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Answer:
Productivity rises more quickly when countries produce goods and services for which they have a natural talent.
Explanation:
This is the best option with the theory of comparative advantage states countries produce goods for which they have a lower opportunity cost. Having resources and talents lower the opportunities cost. When countries do this, it increases economic welfare for all.
