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Darya [45]
3 years ago
8

Two stores - Lazy Guys and Ralph's Recliners - are located in the same city. Both stores buy recliner chairs from the same manuf

acturer at the same price and both stores are about the same size, so that the fixed costs of production for both stores are the same. Ralph's Recliners sells more recliners per month and Ralph's has a lower average total cost of production. Which of the following can explain why the average total cost of production is lower for Ralph's Recliners?
A. The price of recliners charged by​ Ralph's is greater than the price charged by Lazy Guys.
B. Because​ Ralph's Recliners sells more output its average fixed costs are lower than Lazy​ Guy's average fixed costs.
C. ​Ralph's explicit costs are less because Ralph owns the land on which his building is located. Lazy Guy must make lease payments for the land on which its store is located.
D. The rent Lazy Guys pays for its building is greater than the rent paid by​ Ralph's Recliners.
Business
1 answer:
Leokris [45]3 years ago
7 0

Answer:

B)

Explanation:

Because Ralph´s Recliners assigns the fixed costs to more quantity of recliners. Each one of the products charges less part of the fixed cost, compared with each one made by Lazy Guys. Then, the average total cost is lower.

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Explanation:

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3 years ago
Roger is new-product project manager for a medical equipment company. Recently the team has exhibited a high degree of conflict
Flauer [41]

Answer: Storming stage

               

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5 0
4 years ago
Logan Corporation has 30 employees, 10 in "A-line," and 20 in "B-line." Logan incurred $180,000 in fringe benefits costs last ye
fomenos

Answer:

The correct answer is A.

Explanation:

Giving the following information:

Logan Corporation has 30 employees, 10 in "A-line," and 20 in "B-line." Logan incurred $180,000 in fringe benefits costs last year.

First, we need to calculate the allocation rate based on number of employees:

Estimated allocation rate= total estimated fringe costs for the period/ total amount of allocation base

Estimated allocation rate= 180,000/30= $6,000 per employee.

Now, we can allocate fringe costs to the A-line:

Allocated fringe costs= Estimated Estimated allocation rate* Actual amount of allocation base

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3 0
3 years ago
There are more corporations in this country than any other business structure.<br> OTrue<br> O False
Ket [755]
It would be false, Shareholders in a corporation are legally considered partial owners of the corporation.
6 0
3 years ago
Read 2 more answers
Harlose Suits owns more equipment than required for manufacturing goods during periods of regular demand in order to tackle sudd
alex41 [277]

Answer:

Harlose Suits owns more equipment than required for manufacturing goods during periods of regular demand in order to tackle sudden demand surges. It also has a certain reserve of produced goods to tackle material shortages. In this case, the reserve of equipment and produced goods are examples of <u>the</u> <u>capacity cushion</u>.

Explanation:

The capacity cushion is the amount of reserve capacity that a business keeps to manage sudden increases of demand or momentarily losses of production capacity.

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