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3 years ago

What does the price of diesel fuel in russell ks have to do with the price of bread in boulder co?

1 answer:

5 0

The equipment to plant, harvest, and transport grain used by the farmers in KS is powered by diesel fuel. Therefore, an increase in the price of the fuel will also increase the price of the bread. The main ingredients of the bread are coming from the farmers' harvest of grain. When the price of the fuel would increase, the farmers would be selling their grains at a higher price which would yield to a higher price of the bread.

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A disadvantage of vertical integration is that by pooling demand for parts from a number of companies, a supplier may be able to

Aleonysh [2.5K]

The statement,"A disadvantage of vertical integration is that by pooling demand for parts from a number of companies, a supplier may be able to enjoy economies of scale that result in higher quality and lower cost than if every company makes its own parts" is True .

Explanation:

The drawback to vertical integration is that a producer can have economies of scale, and incorporate demand for components from certain companies and therefore improve quality and cost in contrast with the production of their own products by each company.

Market power is a framework in which an organization manages the microeconomics and administration supply chain. In general, a supply chain leader creates another goods or services and the products satisfy a certain criteria.

A retailer such as Wal-Mart, which has its own products, is an example of vertical integration. This owns the inventory, manages the distribution and is the seller. Because it splits the guy in between, the company will deliver a much lower price, such as the brand name drug.

8 0

3 years ago

Suppose your company needs $14 million to build a new assembly line. your target debt-equity ratio is 0.84. the flotation cost f

Leviafan [203]

Suppose your company needs $14 million to build a new assembly line. your target debt-equity ratio is 0.84. the flotation cost for new equity is 9.5 percent, but the floatation cost for debt is only 2.5 percent. The amount required to build a new assembly line = is $ 14 million.

Equity represents the price that could be lower back to an agency's shareholders if all of the property has been liquidated and all of the business enterprise's debts were paid off. We also can consider equity as a diploma of residual possession in a company or asset after subtracting all debts related to that asset.

Equity is the possession of any asset after any liabilities associated with the asset are cleared. for example, in case you very own a vehicle well worth $25,000, but you owe $10,000 on that car, the car represents $15,000 fairness. it is the price or interest of the maximum junior magnificence of investors in assets.

In conclusion, stocks are referred to as equities because they constitute possession in organizations. They permit buyers advantage from boom but also have a chance while enterprise conditions weaken. In the subsequent time, we'll explore the variations between shares and bonds.

Debt equity ratio (debt/equity) = 0.84/1

Therefore total assets = debt + equity = 0.84 + 1 = 1.84

Flotation Cost Percentage formula = Weight of debt x Floataion Cost of debt + Weight of equity x Floataion Cost of equity

= (0.84 / 1.84) 2.5% + (1/1.84)9.5%

= 1.1413% + 5.1630%

= 6.3043%

Amount to be raised to purchase building = Cost of building / ( 1 - Total Floatation Cost Percentage)

= 14/(1-6.3043%)

= 14/0.9370

= 14.94 million

Learn more about equity here brainly.com/question/26507171

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3 0

1 year ago

Allowance for Doubtful Accounts has a debit balance of $500 at the end of the year, before adjustment, and uncollectible account

tigry1 [53]

Answer: c. $18,000

Explanation:

Provision for doubtful accounts estimate;

= 600,000 * 3%

= $18,000

This is the Percentage of sales method and it ignores the existing balance in the Provision for doubtful accounts using only the estimate provided.

8 0

3 years ago

On December 31, 2018, the balance in Megan's Products Accounts Receivable was $680,000 and net credit sales amounted to $3,800,0

RoseWind [281]

Answer:

Bad Debt Expense ($40,000 - $3,200) $36,800

To Allowance for Doubtful Accounts $36,800

(Being the bad debt expense is recorded)

Explanation:

The adjusting entry is shown below:

Bad Debt Expense ($40,000 - $3,200) $36,800

To Allowance for Doubtful Accounts $36,800

(Being the bad debt expense is recorded)

For recording this we debited the bad debt expense as it increased the expenses and credited the allowance for doubtful debts as it decreased the value of the assets

And since there is a credit balance so the same is deducted from the account receivable

5 0

3 years ago

"Global Marketing refers to: Group of answer choices The evolution of Marketing as being more than the offering of a product. Th

geniusboy [140]

Answer:

Global Marketing refers to the processes by which goods,services,capital,people,information,and ideas flow across national borders.

Explanation:

We operate in a world called global village,where time and location do not really impact doing businesses anymore, as people from different countries that are far apart, can do business without the need to physically meet, using different channels of communication made possible by advancement in technology.

Organizations,as the need to for businesses to sell its produce to a larger number of customers increases, are constantly considering selling to customers who are based in other countries through global marketing techniques.

5 0

3 years ago