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Alborosie
3 years ago
12

A newly formed firm must decide on a plant location. There are two alternatives under consideration: locate near the major raw m

aterials or locate near the major customers. Locating near the raw materials will result in lower fixed and variable costs than locating near the market, but the owners believe there would be a loss in sales volume because customers tend to favor local suppliers. Revenue per unit will be $170 in either case.Omaha Kansas CityAnnual fixed costs ($ millions) $ 0.9 $ 1.0 Variable cost per unit $ 20 $ 35 Expected annual demand (units) 9,400 10,000 Using the above information, determine which location would produce the greater profit. (Omit the "$" sign in your response.)________________ would produce the greater gross profit of $ _______________________________
Business
1 answer:
kiruha [24]3 years ago
4 0

Answer:

<u>Omaha would produce a higher Income.</u>

Explanation:

170 Sales revenue per unit

Omaha

Sales \: Revenue - Variable \: Cost = Contribution \: Margin

170 - 20 = 150

Contribution \: per \: unit \times units \: sold = Total \: Contribution \: Margin

9,400 x 150 = 1,410,000

fixed cost (900,000)

<em>Income 510,000</em>

Kansas City

Sales \: Revenue - Variable \: Cost = Contribution \: Margin

170 - 35 = 135

Contribution \: per \: unit \times units \: sold = Total \: Contribution \: Margin

10,000 x 135 = 1,350,000

fixed cost (1,000,000)

<em>Income 350,000</em>

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Younie Corporation has two divisions: the South Division and the West Division. The corporation's net operating income is $90,10
lapo4ka [179]

Answer:

b. $127,200

Explanation:

Both sales and variable cost are dependent on the number of units sold.

The sales less the variable cost gives the contribution margin. The contribution margin less the fixed cost gives the net operating income.

As such, the total fixed cost of the corporation not traceable to the individual divisions

= $168,500 + $48,800 - $90,100

= $127,200

3 0
3 years ago
Ming is a manager for a large foodservice company. She has the authority to determine whether or not the company should expand i
Alik [6]

Answer:

Strategic

Explanation:

If Ming is a manager for a large company and has the authority to determine whether or not the company should expand into new regions and/or expand the company's product line, Then the level of management that Ming represents is Strategic Management

Strategic management involves setting objectives, <u>analyzing the competitive environment</u>, analyzing the internal organization, evaluating strategies, and ensuring that management rolls out the strategies across the organization.

Business expansion decisions are taken by the highest level of management based on their analysis of the competitive environment

8 0
3 years ago
Kono corp. , an american company, is trying to decide whether to open its first international branch in europe or asia. The mana
scZoUnD [109]

The managers of Kono Corp., which is an American company trying to open a branch in Europe or Asia are operating under a condition of <u>D. uncertainty</u>.

<h3>What is uncertainty?</h3>

Uncertainty refers to situations where the information is imperfect or unknown. When operating under uncertainty, some evaluations need to be undertaken to close the information gap.

<h3>Answer Options:</h3>

A. goal displacement.

B. illusion of control.

C. social reality.

D. uncertainty.

Thus, the managers of Kono Corp. are not operating under goal displacement, the illusion of control, or social reality, but it is operating under conditions of uncertainty.

Learn more about Uncertainty at brainly.com/question/3998745

6 0
2 years ago
You are thinking of buying a bond from Knight Corporation. You know that this bond is long term and you know that Knight’s busin
8_murik_8 [283]

Answer:

d. Both the longer term and the higher risk would tend to make the interest rate higher on the bond issued by Knight.

Explanation:

Both the longer term and the higher risk would tend to make the interest rate higher on the bond issued by Knight because this bond is risky and uncertain.

This means the company would not want to run at a loss

4 0
3 years ago
Read 2 more answers
You are the manager of a retail store. You believe the economy is in a recession and that sales for the month will be unusually
Schach [20]

Answer:

C) False consensus

Explanation:

False consensus refers to the trust what one feel regarding other and think as similar for other person as he thinks. Also in this the opinions of the other persons would not be considered

Since in the question it is mentioned that the majority of the other store managers would feel the same way so here the false consensus would be applied

hence, the correct option is c.  

4 0
3 years ago
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