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GalinKa [24]
3 years ago
14

(bounds of the firm) ashland oil, inc., buys its crude oil in the market. larger oil refiners, such as texaco, drill for their o

wn crude oil. why do some oil companies drill for their own crude oil and others buy crude oil in the market?
Business
1 answer:
garik1379 [7]3 years ago
7 0
Some oil companies drill for their oil crude oil because they can afford it and a certain stage it adds more value to their business. Furthermore, it's a way of controlling a larger segment of the industry and being less dependent of the uncertainties linked with the supply segment. Other companies which don't drill on their own can't generally afford it. Or it may be that they deem it better for their business to only focus on distribution.
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For each of the following transactions for , state whether the total effect of the transaction results in an increase, decrease,
astraxan [27]

Answer:

It will increase the assets,equity and net income but decrease the liabilities

5 0
4 years ago
A stock is expected to pay a $0.45 dividend at the end of the year (D1 = 0.45). The dividend is expected to grow at a constant r
irinina [24]

Answer:

d. $ 9.52

Explanation:

The computation of the expected price of the stock 10 years from today is shown below:

= Dividend at year 10 ÷ (Required rate of return - growth rate)

where,

Dividend at year 10 is

= $0.45 × (1 + 0.04)^10

= $0.67

So, the expected price is

= $0.67 ÷ (11% - 4%)

= $9.52

By applying the formula we can easily find out the expected price of the stock

8 0
4 years ago
The Pampered Pet Shop operates in a perfectly competitive industry and hires you as an economic consultant. The firm is currentl
Sphinxa [80]

Answer:

c. cease production immediately, because it is incurring a loss.

Explanation:

When a business engages in production it looks to make profit. That is for the production price to be higher than cost incurred in producing the good.

However when the price is lower than the average variable cost as is indicated in the scenario then the firm needs to shut down production in the short term.

Factors that will adversely affect a firm in the short term are price, average total cost, and average variable cost.

Once price is less than average total cost or average variable cost it is better to stop production.

As they are incurring an economic loss

5 0
3 years ago
Read 2 more answers
Hinge Manufacturing's cost of goods sold is $420,000 variable and $240,000 fixed. Thecompany's selling and administrative expens
MrRissso [65]

Answer:

Contribution margin= $960,000

Explanation:

Giving the following information:

Hinge Manufacturing's:

Cost of goods sold variable= $420,000

Cost of goods sold fixed= $240,000

The company's selling and administrative expenses are $300,000

variable and $360,000fixed.

If the company's sales are $1,680,000

Sales= 1680000

Variable cost of goods sold= 420000

Variable selling and administrative expenses=300000

Contribution margin= $960,000

8 0
3 years ago
All of a company's depreciation, property taxes, and insurance premiums are considered manufacturing overhead.
Irina18 [472]

All of a company's depreciation, property taxes and insurance premiums are considered manufacturing overhead (MOH) ----- False.

What is considered manufacturing overhead?

Manufacturing overhead (MOH) cost is the sum of all the indirect costs which are incurred while manufacturing a product. It is added to the cost of the final product along with the direct material and direct labor costs.

What does manufacturing overhead include?

Manufacturing overhead includes indirect materials, indirect labor, depreciation on factory buildings and machines, and insurance, taxes, and maintenance on factory facilities. Costs that are a necessary and integral part of producing the finished product.

. Direct labor :

Is the cost of the workers who make the product. The cost of supervisory personnel, management, and factory maintenance workers, although they are needed to operate the factory, are classified as indirect labor because these workers do not use the direct materials to build the product.

Learn more about company's depreciation :

brainly.com/question/1055905

#SPJ4

7 0
1 year ago
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