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rjkz [21]
3 years ago
15

A potato chip manufacturer purchases a potato farm. Which of the following regarding its strategy is true? The manufacturer has

effectively reduced its operating costs by outsourcing its activities. The manufacturer has enhanced utilization by allowing depreciation and other fixed costs to be spread over a larger unit volume.
Business
2 answers:
erma4kov [3.2K]3 years ago
7 0

Answer:

The correct answer is letter "C": The manufacturer has effectively used vertical integration to increase its bargaining position and reduce transaction costs.

Explanation:

Vertical integration occurs when a company purchases and controls other companies along its supply chain. There are two types of vertical integration: backward and forward. In the context of backward vertical integration, a company such as a manufacturer owns companies that supply inputs to manufacturing processes. A corporation owns another business in forward vertical integration, to get closer to the ultimate customer in the supply chain.

Therefore, <em>a potato chip manufacturer by buying a potato farm is engaging in backward vertical integration.</em>

astra-53 [7]3 years ago
6 0

Question:

A potato chip manufacturer purchases a potato farm. Which of the following regarding its strategy is true?

A. The manufacturer has effectively used vertical integration to increase its bargaining position and reduce transaction costs.

B. The manufacturer has enhanced utilisation by allowing depreciation and other fixed costs to be spread over a larger unit volume.

C. The manufacturer has sacrificed quality by using a lower-cost input.

D. The manufacturer has efficiently capitalised on the experience and learning-curve effects within the company.

E. The manufacturer has effectively reduced its operating costs by outsourcing its activities.

Answer:

A. the Manufacturer has effectively used vertical integration to increase it's bargaining position and reduce transaction costs.

Explanation:

Vertical integration is a business strategy whereby a business acquires ownership or controls its suppliers, distributors, or retail locations to control its value or supply chain.

It may also be said that vertical integration has to do with the purchase of a part of all of the production or sales process that was previously outsourced, to have it done in-house.

An example of companies who have done this are:

1. Apple

2. Netflix

3. Comcast (Which acquired NBC)

Businesses can integrate by

  • purchasing their suppliers to reduce the costs of manufacturing or
  • controlling the distribution process that is, owning and controlling the warehousing and delivery of their products etc.

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Sheen Co. manufacturers laser printers. It has outlined the following overhead cost drivers: Overhead Costs PoolCost DriverOverh
andriy [413]

Answer:

Total allocated costs= $53,070

Explanation:

<u>First, we need to calculate the allocation rates using the following formula:</u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Quality control=  77,000 / 1,100 = $70 per inspection

Machine operation= 153,000 / 1,500 = $102 per machine hour

Materials handling= 1,200 / 30 = $40 per batch

Miscellaneous overhead cost=   57,000 / 5,700= $10 per labor hour

<u>Now, we can allocate overhead:</u>

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Quality control= 70*295= 20,650

Machine operation= 102*240= 24,480

Materials handling= 40*6= 240

Miscellaneous overhead cost= 10*770= 7,700

Total allocated costs= $53,070

3 0
2 years ago
Fredrick is single and lives alone. He paid more than half of the cost of maintaining a home for his father for the entire year.
Elan Coil [88]

Because Fredrick can not claim his father as a dependent then, the filing status that can Fredrick use is Single.

<h3>What is a filing status?</h3>

A filing status is a tax status that is used to determine a taxpayer's filing requirements, standard deduction, eligibility for certain credits, correct tax etc.

In conclusion, because Fredrick can not claim his father as a dependent then, the filing status that can Fredrick use is Single.

Read more about filing status

<em>brainly.com/question/1831273</em>

4 0
2 years ago
A club sold 80 boxes of candy, some at $1.75 and some at $3.25. total revenue was $160. an appropriate equation to determine the
Lorico [155]
20 dollars each box i think
5 0
2 years ago
An investor holds $100,000 (par value) worth of TIPS currently trading at par. The coupon rate of 4% is paid semiannually, and t
poizon [28]

Answer:

coupon payment = $2025

so correct option is A) $2,025

Explanation:

given data

par value =  $100,000

coupon rate = 4%

annual inflation rate = 2.5%  = 0.025

so Semiannual rate = \frac{0.025}{2} = 0.0125

to find out

coupon payment will the investor receive at the end of the first six months

solution

as we know principal would increase by the amount of inflation

so it will be = $100,000 ( 1 + 0.0125 )

so here coupon payment will as

coupon payment = $100,000 ( 1 + 0.0125 ) × \frac{0.04}{2}

solve it we get

coupon payment = $2025

so correct option is A) $2,025

6 0
3 years ago
Choose the term that best matches the description given.
OleMash [197]

Answer:

supply

Explanation:

it is how much of something you have to sell

3 0
2 years ago
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