1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
goldenfox [79]
3 years ago
7

An executive of a large steel company put the blame for lower net income for a recent fiscal period on the ""shift in product mi

x to a higher proportion of export sales."" Sales for the period increased slightly while net income declined by a percent such as 25%. Explain how a change in product (sales) mix to a higher proportion in export sales could result in a lower level of net income.
Business
1 answer:
rodikova [14]3 years ago
3 0

Answer:

A business can improve its average contribution ratio and its overall profitability, by shifting its sales mix to include more products with high contribution margin ratios.

In this case American steel company shift in product mix is due to a higher proportion of export sales. This shift caused to decline net income of the company. This is because the contribution margin ratio on export sales may lower than the other product mix. So, the shift of product mix to low contribution sales will cause to decline the net income.

You might be interested in
The use of a differentiation strategy would be expected to be LEAST effective in which of the following markets? a. Commodity go
Tema [17]

Answer:

The correct answer is letter "A": Commodity goods.

Explanation:

A differentiation strategy is an approach adopted by companies to make the goods or services they offered unique compared to their competitors. Most firms tend to use price as the main key to the difference between their products and the competitors'.

Thus, <em>the differentiation strategy is less likely to be applied in commodity goods because they are inherently unique such as oil, natural gas, precious metals or foreign currencies</em>.

3 0
3 years ago
In a production operation of an electronics firm, a company manufactures I/O circuit chips that is used in a final assembly proc
Feliz [49]

Answer:

defective

Explanation:

In an electronic firm it is necessary to keep check for every circuit as they turn out to be defective. There can be minor error is circuit formation but this will be considered as defective because circuits are very sensitive and even minor error can lead to short circuits which could lead to a disaster. It is necessary for a firm to keep track and quality of every circuit should be checked.

3 0
3 years ago
Leisure Enterprise’s total cost of producing speedboats is given by TC = 10 Q 3 – 4 Q 2 + 25 Q + 500. On the basis of this infor
Anastasy [175]

Answer:

The marginal cost of producing the 25th speedboat is 18,575.

Explanation:

Note that the given Leisure Enterprise’s total cost (TC) of producing speedboats is correctly stated as follows:

TC = 10Q^3 - 4Q^2 + 25^Q + 500 …….………….. (1)

Where Q represents the quantity of speedboats produced.

To obtain the marginal cost (MC) of producing speedboats, equation (1) is differentiated with respect to Q as follows:

MC = dTC/dQ = 30Q^2 - 8Q + 25 ………………… (2)

Finding the marginal cost (MC) of producing the 25th speedboat implies that Q = 25.

Substituting Q = 25 into equation (2), we have:

MC = (30 * 25^2) - (8 * 25) + 25 = 18,575

Therefore, the marginal cost of producing the 25th speedboat is 18,575.

4 0
3 years ago
​Morgan, a​ widow, recently passed away. The value of her assets at the time of death was ​$9 comma 647 comma 000. The cost of h
Bezzdna [24]

Answer:

Check the explanation

Explanation:

          Particulars                                                  Amount in $

A.  Gross Estate                                                      8600000

Less: deductions (funeral & administrative tax)    70000

B.  Taxable estate                                                   8530000

 

c.  Gift-Adjustable Taxable estate value:  

       Taxable estate                                                 8530000

Charities will be deucted from tax calculation      1000000

         gift-adjusted taxable estate value                  7530000

D.  estate would be subject to tax                         7530000

E.  estate tax liability Calculated below                 876000

 

For estate more than 53400000 tax will be charged at 40%  

So, same is 40% of excess on                       53400000  

Taxable estate before threshold after deducting 53400000 from estate that would be subject to Tax  2190000

Tax at 40% of excess value                           876000

 

8 0
3 years ago
Read 2 more answers
Which of the following groups decides who sits on the board of directors of a corporation?
Darina [25.2K]
D. the shareholders decide who sits on the board of directors
3 0
3 years ago
Read 2 more answers
Other questions:
  • Which of the following statements concerning the cash budget is CORRECT? a. Depreciation expense is not explicitly included, but
    8·1 answer
  • At the beginning of the year, Ilberg Company estimated the following costs: Overhead $416,000 Direct labor cost 520,000 Ilberg u
    15·1 answer
  • An event that must occur in order for a party's duty to arise is called a(n) ________________.
    13·1 answer
  • Suppose Kim is willing to pay $5 for her first ice cream sundae, $4 for a second ice cream sundae, and $2 for a third ice cream
    6·1 answer
  • _____ refers to the movement of products through more than one channel to reach the firm's target market. select one:
    5·1 answer
  • No Edges Left Behind Enterprises has book income of $1,200,000 which consist of income tax expense of $380,000, municipal bond i
    6·1 answer
  • If the opportunity cost of manufacturing machinery is lower in the United States than in Britain and the opportunity cost of man
    10·1 answer
  • Which of the following statements about government deficit spending is most accurate?
    13·1 answer
  • If a one-year adjustable-rate mortgage loan (ARM) is originally offered at 7% interest with "caps of 1 and 6," the interest rate
    8·1 answer
  • Review Question 1 What is meant by deadweight​ loss? Why does a price ceiling usually result in a deadweight​ loss? Deadweig
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!