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otez555 [7]
3 years ago
8

Which of the following is a result of over-diversification through acquisition? Select one:

Business
1 answer:
Aleksandr-060686 [28]3 years ago
6 0

Answer:

3) Corporations use acquisition as a substitute for innovation.

Explanation:

The fastest way in which a corporation can enter a new market or develop new products is through buying existing companies that already operate in the new target markets or have developed the new products that the corporation wishes to sell.

Research and development is very costly and time consuming, and on many occasions the results aren't even good or are not as good as expected. By acquiring a smaller company that has already developed the product, then the corporation might even save money.  

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Sales $ 2,000,000 100 % $ 500,000 100 % $ 2,500,000 100 % Variable expenses 800,000 40 % 250,000 50 % 1,050,000 42 % Contributio
Sonja [21]

Answer:

$1.5 million

Explanation:

The computation of break even sales in dollars is shown below:

= (Fixed expenses) ÷ (profit volume ratio)

where,  

Contribution margin  = Sales  - Variable expense

= $2,500,000 - 1,050,000

= $1,450,000

And, Profit volume ratio = (Contribution) ÷ (sales) × 100

So, the Profit volume ratio = ($1,450,000) ÷ ( $2,500,000) × 100 = 58%

And, the fixed expenses is $870,000  

Now put these values to the above formula  

So, the value would equal to  

= ($870,000) ÷ (58%)  

= $1.5 million

3 0
3 years ago
Carver Packing Company reports total contribution margin of $80,200 an pretax net income of $40,100 for the current month. In th
Helen [10]

Answer:

• Degree of operating leverage = $2

• Expected Percent change in income = 20%

Explanation:

Details provided from the question includes ;

Total contribution margin = $80,200

Pretax net income = $40,100

Expected increase in sales value = 10%

Therefore;

Degree of operating leverage

= Contribution margin ÷ Net operating income

= $80,200 ÷ $40,100

= $2

Percent change income

= Percentage increase in sales × Degree of operating leverage

= 10% × 2

= 20%

8 0
3 years ago
Who wants to talk to me? (NO POLITICS) PLZ :(
vampirchik [111]

Answer:

if no politics why u put category as business xD

Explanation:

8 0
3 years ago
Read 2 more answers
What does an exchange rate tell you?
MrRa [10]
When you ask me about exchage rate I remember about Arabic coming to Africa for trading goods. So this tells me that the the value of one currence from deferent nations was converted to another. I hope you got it.
8 0
3 years ago
Read 2 more answers
Restate the following income statement for a retailer in contribution format. Sales revenue ($100 per unit) $ 98,000 Less cost o
Rudiy27

Answer:

                        <u>Contribution Margin Statement</u>

Sales revenue ($100 x 980)                               $98,000

Less Variable costs:

cost of goods sold ($58 x 980)         $56,840

Commissions expense ($5 x 980)    $4,900

Shipping expense ($3 x 980)            <u>$2,940</u>

                                                                             <u>$64,680</u>

Gross margin                                                       $33,320

Less Fixed costs:

Salaries expense                                $7,900

Advertising expense                          <u>$5,800</u>

                                                                             <u>$13,700</u>

Net Profit                                                             <u>$19,620</u>

5 0
3 years ago
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