Answer:
a. 5 years
b. Yes they will because the payback period is 5 years.
Explanation:
a. Payback period
First calculate the annual cash inflow:
= Net income + Depreciation
= 66,500 + 28,500
= $95,000
The investment cost was $475,000
Payback period = Investment cost / Annual cash inflow
= 475,000 / 95,000
= 5 years
b. The company will purchase the games because they have a payback period of 5 years.
Answer:
a) Marginal cost of waiting is greater than the marginal benefit of being served
Explanation:
For an economic perspective, customer leave a fast food restaurant as they find the marginal cost of waiting is higher than the cost of marginal benefit of being served at restaurant.
Marginal cost: In economics, it is a cost that is incurred for an additional unit of benefit received out of certain action or activity.
Marginal benefit: It is a benefit received for an additional unit of cost incurred during the activity taken place.
Therefore, customer have done analysis on the benefit of waiting in a queue for getting served at restaurant, which he found that marginal cost is greater than the marginal benefit of being served.
Answer:
Benefits from related & unrelated diversification.
Explanation:
Firms' benefit(s) from related diversification :
- Building & developing market power - By sharing the related diversification going on in entire industry.
- Sharing activities & market linkages with other businesses - Associated diversification implies forward & backward linkages.
Firms' benefit(s) from unrelated diversification :
- Leveraging & enhancing different core competencies, USP - By Focusing on self paced unique diversification
- Creating a different ostentation brand - Creating a strong brand, capable of becoming a market leader, rather than market follower
Key concepts explaining firm success or failure from either diversification are implicit within above explanation.
Answer:
a. At lower levels, management have fewer controllable costs
Explanation:
The opposite is true, lower-level management have more controllabe costs than higher level management because top management focuses on the general strategy of the firm, while lower management focuses on the specific production processes.
It is in these specific production processes that many controllable costs arise. A production line supervisor (part of lower-level management) can directly control some variable costs such as energy used, amount of input, or even work hours.
Answer:
Commitment
Explanation:
It can be defined as an agreement to do something in the future. It is a relationship among two or more people which is based on a mutual and agreed commitment to one another and includes trust, honesty, love. The different forms of committed relationships are close friendship, marriage, and civil unions.
