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3 years ago

Which one of the following is a claimed disadvantage of privatisation?

Business

1 answer:

Serga [27]3 years ago

8 0

Answer:

3. There will be less competition than when the industry was nationalized monopoly

Explanation:

Privatization transfers ownership of state-owned corporations or properties from the government to the private sector. The transfer is through the sale of government-held shares to another company or the general public.

Since state-owned enterprises are large corporations, privatization creates the possibility of forming private monopolies. The private monopolies are likely to dominate the market and stifle out the competition. They are also likely to increase prices as private business is profit-motivated, which is detrimental to consumers.

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The goldfarb company manufactures and sells toasters. each toaster sells for $23.75 and the variable cost per unit is $16.25. go

elena-s [515]

We calculate first for the revenue of the selling 8,000 units of toasters by multiplying 8,000 with the selling price per unit.

Revenue = (8,000)($23.75/unit) = $190,000

Then, we calculate for the total variable cost as below,

Variable cost = (8,000)($16.25/unit) = $130,000

Adding the variable cost and the fixed cost will give us a total cost of $155,000.

The contribution margin per unit is therefore,

Contribution margin per unit = (190,000 – 155,000) / 8,000 = $4.375.

3 0

3 years ago

Golebiewski Corporation has provided the following contribution format income statement. Assume that the following information i

Andrews [41]

Answer:

Margin of safety= $9,000

Explanation:

First, we need to calculate the selling price and unitary variable cost:

Selling price= 150,000 / 5,000= $30

Unitary varaible cost= 112,500 / 5,000= $22.5

Now, we need to determine the break-even point in dollars:

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 35,250 / [(30 - 22.5) / 30]

Break-even point (dollars)= 35,250 / 0.25

Break-even point (dollars)= $141,000

Finally, the margin of safety in dollars:

Margin of safety= (current sales level - break-even point)

Margin of safety= 150,000 - 141,000

Margin of safety= $9,000

8 0

3 years ago

Cayuga Hardwoods produces handcrafted jewelry boxes. A standard-size box requires 8 board feet of hardwood in the finished produ

cupoosta [38]

Answer:

$44 per case.

Explanation:

If A standard-size box requires 8 board feet of hardwood in the finished product. In addition, 2 board feet of scrap lumber are normally left from the production of one box. Hardwood costs $4.00 per board foot, plus $1.50 in transportation charges per board foot.

Then, To calculate the standard cost of direct materials for the jewelry box, we multiply the direct materials standard price of $4.00 (plus the transportation costs of 1.50 per board foot) by the direct materials standard quantity of 8 feet (8 board feet of hardwood in the finished product) per unit.

The result is a standard direct materials cost of $44 per case.

8 0

3 years ago

A fundamental principle set forth in the preamble to the 1994 Marrakesh Agreement is that "substantial reduction of tariffs and

WINSTONCH [101]

Answer:

The correct answer is: a) true

Explanation:

According to the WTO, the 1994 Marrakesh Agreement states that "trade and economic endeavour should be conducted with a view to raising standards of living (...)" and this could be achieved, among other things, by "entering into reciprocal and mutually advantageous arrangements directed to the substantial reduction of tariffs and other barriers to trade (...)"

Source:

World Trade Organization: https://www.wto.org/english/docs_e/legal_e/04-wto_e.htm

5 0

3 years ago

An investor exercises the right to buy one additional share at $20 for every four shares held. how much should each share be wor

Verdich [7]

$45.00 should each share be worth after the rights issue if they previously sold for $50 each.

<h3>What is share?</h3>

A share is a financial market unit used in mutual funds, limited partnerships, and real estate investment trusts. The term "share capital" refers to all of an enterprise's shares. A shareholder of the corporation is someone who owns stock in the company.

A share is a type of ownership unit that represents an equal amount of a company's capital. A share entitles the shareholder to an equal claim on the company's profits and losses. There are two types of shares: equity shares and preference shares.

A company's shares signify its ownership. When a person purchases stock in your company, they become a shareholder. Shareholders elect who runs a firm and participate in critical decisions.

To know more about share follow the link:

brainly.com/question/25818989

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5 0

1 year ago