Answer:
(A) market saturation
Explanation:
A franchisee starts a new franchise by entering into a franchising agreement with a franchiser to use its brand name and sell its products. The biggest challenge faced by this new franchise is market saturation.
This occurs because<u> the presence of other similar businesses, whether franchises or independently owned businesses in the market, creates lots of competition for the new franchise.</u>
Answer:
False
Explanation:
The payback period refers to the specific period of time that it is required to recover the amount invested and it is an important factor to take into account but the project with the shortest payback period is not necessarily the most desirable investment because other factors are also considered, for example, the expected profit and the conditions in the environment that may affect the assumptions made. Because of that, the answer is that the statement is false.
Answer:
It is logical to use this method when overhead resources are consumed by various products in substantially different ways throughout multiple departments.
Explanation:
A departmental overhead rate is considered to be a standard charge based on the units of activity produced by a business segment. Overhead rate at the department level are usually applied in a more refined cost allocation environment, where there is a need to apply overhead cost as precisely as possible.
When we limit trade, our peace and prosperity will suffer and decrease.
<h3>What happens when trade is limited?</h3>
Trade is very important for the growth, peace, and prosperity of an economy. This is because imports give a nation more options for goods and services.
Exports then given a nation more income and better foreign exchange. This is why peace and prosperity increases when we engage in trade. Limiting trade would therefore have a negative effect on peace and prosperity.
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Answer:
Explanation:
The preparation of the contribution margin income statement for the year ended December 31, 2017 is presented below:
Sales (10,000 units × $181) $1,810,000
Less: Variable cost (10,000 units × $119) ($1,190,000)
Contribution margin $620,000
Less: Fixed cost ($390,600)
Net income $229,400
