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mina [271]
3 years ago
12

Vertical integration strategies offer good potential

Business
1 answer:
irina [24]3 years ago
5 0

Answer:

b. extend a company's competitive scope within the same industry by expanding its operations across multiple segments or stages of the industry value chain.

Explanation:

  • A vertical integration has the advantages of the reduction in the transport costs and can result in a closer geographical proximity.  
  • It enables the improvement of the supply chain coordination.
  • And provides a means of differentiation of cost over the inputs. Has backward and forward linkages and integrations.
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Answer:

Controllable margin= $300,000

Controllable margin in %= 33.3%

Explanation:

Controllable margin is sales revenue less controllable variable costs and fixed cost.

Controllable margin= Sales revenue - controllable variable cost - controllable fixed costs

Controllable margin= contribution margin - fixed costs

                                     = 500,000 - 200,000= 300,000

Controllable margin in %= 300,000/900,000 × 100 =33.3%

Controllable margin in %= 33.3

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