Answer:
Three cases are considered: First case is to construct a small factory, second is to construct a large factory and third is to do nothing.
Construct a Small Facility is the most suitable option from the business perspective which makes case 1 recommended.
Explanation:
Case 1 - Construct a small facility
Return = [P(High Demand) x Revenue in case of High Demand] + [P(Low Demand) x Revenue in case of Low Demand] - Cost of Setup
= [ 0.4 x 12 ] + [ 0.6 x 10 ] - 6 = $ 4.8 million
Case 2 - Construct a Large Facility
Return = [P(High Demand) x Revenue in case of High Demand] + [P(Low Demand) x Revenue in case of Low Demand] - Cost of Setup
= [0.4 x 14] + [0.6 x 10] - 9 = $ 2.6 million
Case 3 - Do Nothing
Return = 0
The universal functions of marketing are performed in the same way in all nations and economic systems. This is false.
<h3>How to illustrate the information?</h3>
A consumer economy is driven by marketing, which promotes goods and services and focuses on people who are most likely to make purchases. More sales for a company that uses effective marketing techniques lead to expansion, the creation of jobs, increased tax revenue for governments, and eventually, general economic growth.
The seven components of marketing include distribution, market analysis, price setting, financing, product management, advertising outlets, and product-to-consumer matching.
In this case, the universal functions of marketing are performed in the same way in all nations and economic systems. This is false. It should be noted that different economic system has its own role to play in the market. The economic systems are capitalist, socialism, and mixed economy.
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Answer:
b. $357000
Explanation:
The computation of the amount of pension expense reported for 2018 is shown below:
= Service cost + Projected benefit obligation × settlement rate - fair value of plan assets × settlement rate
= $225,000 + $3,000,000 × 11% - $1,800,000 × 11%
= $225,000 + $330,000 - $198,000
= $357,000
Basically we added the projected benefit obligation and deduct the fair value of plan asset after considering the settlement rate to the service cost
The net income that must be expected to warrant starting the business is: $47,925.
<h3>Net income</h3>
Using this formula
Net income = ROE × Total equity
Let plug in the formula
Net income = 13.5% × $355,000
Net income = $47,925
Therefore the net income that must be expected to warrant starting the business is: $47,925.
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Answer:
B.The amount you spend on variable expenses changes from month to month.
Explanation:
Variable expense is that which changes in proportion to increase or decrease in production, sales or any relevant activity. You pick the hint from the word "variable" which means 'changing' and from understanding this, you eliminate the choices that say otherwise.