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In-s [12.5K]
4 years ago
9

Marina manages the supply chain for a company that sells diamond watches. She learns that economists are predicting a moderate t

o severe recession in the next six to eight months. Based on that information, what action should Marina recommend to the company's owner?
Business
1 answer:
LiRa [457]4 years ago
8 0

Answer:

Reduce supply. Customers generally reduce their purchases of luxury items when the economy falters.

Explanation:

During the recession, the number of unemployment will rise and the purchasing power that people have will be reduced.

When this happen, the supply of the diamond watches in the market will heavily outnumbered the number of consumers that afford to buy it. (this is applicable to all type of products, not only diamond watches)

Because of this,  when expecting a recession in the future, companies tend to reduce the amount of supply to minimize their loss. They can resell it after market has been restabilized.

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An organization's hierarchy of authority refers to an organization's _____.
neonofarm [45]
<span>An organization's hierarchy of authority refers to an organization's chain of command.
At the top of this chain, you will find the boss of the organization, and under him are his or her employees, who have far less authority that the boss.
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3 0
4 years ago
The difference between your sales and your cost of goods sold is known as your what
Anettt [7]

Answer:

profit.

Explanation: its just right

8 0
3 years ago
Economists refer to the necessity of holding all variables other than price constant in constructing a demand curve as the A. su
Andru [333]

Answer:

D. ceteris paribus condition

Explanation:

The Latin words “Ceteris paribus”, means “all other things remain the same”. It is an assumption usually included when by economists when stating laws or concepts such as demand and supply. Because, actually in the real word, it is feasible to eliminate other variables that might influence an outcome, aside the variables under study.  So therefore, we assume all other variables remain constant, when stating the relationship between two variables. For example, when constructing a demand curve showing the relationship between price and quantity demanded, we assume that all other variables that can influence demand other than price, remain the same, which in reality might be difficult to isolate.

4 0
3 years ago
Mullineaux Corporation has a target capital structure of 46 percent common stock, 5 percent preferred stock, and the balance in
Jet001 [13]

Answer:

c. 11.02 percent

Explanation:

Weighted Average Cost of Capital (WACC) is the return that is required by the long term providers of Finance for the Business.

WACC = Ke × E/V + Kp × P/V + Kd × D/V

Where,

Ke = Cost of Equity

     = 15.8 %

E/V = Market Weight of Equity

       = 0.46

Kp = Cost of Preference Stock

     = 8.3 %

P/V = Market Weight of Preference Stock

      = 0.05

Kd = After tax Cost of Debt

     = 6.8 %

D/V = Market Weight of Debt

      = 0.49

Therefore,

WACC = 15.8 % × 0.46 + 8.3 % × 0.05 + 6.8 % × 0.49

           = 11.015 or 11.02 %

6 0
3 years ago
Three years ago, you purchased some 5-year MACRS equipment at a cost of $135,000. The MACRS rates are 20 percent, 32 percent, 19
dem82 [27]

Answer:

d. The tax due on the sale is $14,830.80

Explanation:

Calculation to Determine Which of these statements is correct if your tax rate is 34 percent

First step is to calculate the Book value

Book value = $135,000 × (1 −.20 −.32 −.192)

Book value= $38,880

Second step is to calculate the Taxable amount

Taxable amount = $82,500 - 38,880

Taxable amount = $43,620

Now let calculate the tax due on the sale

Tax = $43,620 × .34

Tax= $14,830.80

Therefore The statements that is correct if your tax rate is 34 percent will be :

The tax due on the sale is $14,830.80

3 0
3 years ago
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