They are using the Dual income and no kids method
Answer:
If American produces the new compound, profit will increase by $88,000
Explanation:
increase in selling price = selling price of new variant of chemical - selling price of chemical compound
= $83 - $52
= $31
Net increase in profit = total increase in selling price - additional processing cost
= $31*8000 - $160000
= $248000 - $160000
= $88,000
Therefore, If American produces the new compound, profit will increase by $88,000.
net increase in profit =
Answer:
A
Explanation:
As it is already mentioned that both businesses are different from each other, therefore, managing these two different business by having a one organizational structure will lead to confusion as in the case of question.
When two different business merge together this is called conglomerate integration.
Business merge together in order to enjoy the benefit of the term 'synergy' that means the whole is greater than sum of its parts. That bring definitely some advantages for the merged businesses.
But that too have disadvantages when the merged businesses failed to get benefits of the concept of synergy. That is, large businesses are difficult to manage, two different businesses require different set of management, and strategies.