Answer:
$30,000 decrease in the net income of Fletcher Inc.
Explanation:
Product G contribution margin = Sales - Variable cost = $210,000 - $180,000 = $30,000.
Since the discontinuance would have no effect on the total fixed costs and expenses or on the sales of Products F and H, that means the fixed cost of $50,000 on product G will continue to be incurred while Product G contribution margin of $30,000 which is currently being contributed to the net income will be lost.
Therefore, the amount of change in net income for the current year that will result from the discontinuance of Product G is a $30,000 decrease in the net income of Fletcher Inc.
Answer:
Both employment and the real wage rate would decrease
Explanation:
Given that the capital stock of a nation or country jas a direct impact on such country in terms of savings and investments which directly translates to additional.economic development.
Hence, in this case, when a tremendous flood along the Mississippi River destroys thousands of factories, reducing the nation's capital stock by 5%. What happens to current employment and the real wage rate is that "Both employment and the real wage rate would decrease"
This because there won't be adequate money available to create more employment. And with lease employment opportunities than the available labor, the real wage rate tends to decrease over time.
Answer:
The answer is B.
Explanation:
Economies of scale enjoy cost advantage. Companies that have economies of scale can produce large output with lower cost of inputs. They are always a big firm. Cost of production (inputs) and volume of production (outputs) are inversely related.
Diseconomies of scale is the opposite. Here, unit cost of production (inputs) increases as output increases. Inputs and outputs are directly related.
Answer:
B. False
Explanation:
The days sales in receivable indicates the number of days in which a company receives the payments of its credit sales. A lower number indicates that the business collects the money faster and more efficiently. According to this, the statement is false because the days sales in receivable for baker sales is 35 and for xanadu company is 25 which means that xanadu company is having less difficulty in collecting the money.
Answer:
The correct answers are letters "B" and "C": The economy experiences persistent shortages and surpluses; Many goods are available only through a black market.
Explanation:
A Command Economy is one where the <em>government controls the economy</em>, acting as the central planner, dictating production quotas and distribution levels, and setting prices. A company weakness describes an <em>internal factor</em> of the organization that could represent a disadvantage for the growth of the firm.
<em>As the government regulates the supply and demand in command economies, it is likely to see shortages and surpluses in its market. This will cause those products to be traded illegally in what is known as the black market</em>.