Why does demand become more elastic over time?

A small firm intends to increase the capacity of a bottleneck operation by adding a new machine. Two alternatives, A and B, have

Ronch [10]

Answer:

Alternative A : 7,800 units

Alternative B: 5,250 units

Explanation:

$\frac{Fixed\:Cost}{Contribution \:Margin} = Break\: Even\: Point_{units}$

Were:

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

for A:

15 - 10 = 5 contrbution margin

each unit contributes 5 dollars

then: $39,000 fixed cost / $5 per unit = 7,800 units

It need to sale 7,800 untis to pay the fixed cost generated for alternative A

for B:

15 - 11 = 4 contribution margin

each unit contributes 4 dollars

then: $21,000 fixed cost / $4 per unit = 5,250

It need to sale 5,250 units to pay the fixed cost for this alternative

7 0

3 years ago

Which of the following is true of an opportunity cost? A. It is the income foregone by not using a resource in an alternative w

ahrayia [7]

Answer:

A. It is the income foregone by not using a resource in an alternative way.

Explanation:

Opportunity cost is the income foregone by not using a resource in an alternative way.

Opportunity cost is refers to the value of what you have to give up in order to choose something else. It can also be called REAL COST.

It also refers to the value or benefits of something that must be given up in order to acquire another thing.

7 0

4 years ago

The HR department at Top Choice Manufacturing has been asked to collect job analysis information about general worker behaviors

sineoko [7]

Answer:

The correct answer is letter "A": position analysis questionnaire.

Explanation:

Position Analysis Questionnaire or PAQ is helpful to link job duties with individuals' characteristics such as mental processes or interpersonal skills. The results of PAQ are implemented in the desired profile of different job positions within the firm and for training references. <em>PAQ is employee-oriented in nature which implies workers' behaviors are the key features to study in different jobs at different levels.</em>

7 0

3 years ago

Nike offers people the opportunity to visit its website to create running shoes in the style and color they choose. How would yo

PilotLPTM [1.2K]

Answer:

b. Mass customization

Explanation:

Mass customization -

It is the process of producing goods and service which can be altered according to the likes and dislikes of the customer , is known as mass customization .

It is the method to increase the production and increase marketing and manufacturing methods .

This method is also known as built - to - order or made - to - order method .

This method allows the customer to have a wider area of options and increase the creativity .

Hence , from the question ,

The correct term for the given example is mass customization .

7 0

3 years ago

Fitbit makes health and fitness tracking devices. some buyers want very basic fitness tracking such as steps taken and calories

spin [16.1K]

In serving these two different groups, Fibrit is using the benefits sought or benefit segmentation. The benefit segmentation is a process that divides the market into a category in regards of the perceived value in which the segments made in the market is purely based on the performance, customer service, quality, features and the benefits that it provides to its consumers.

7 0

3 years ago