Answer:
Correct option is A 5.01%
Explanation:
Let irr be x%
At irr,present value of inflows=present value of outflows.
1,500,000=350,000/1.0x+475,000/1.0x^2+400,000/1.0x^3+475000/1.0x^4
Hence x=irr=5.01%(Approx).
Answer:
33,793 pizzas
Explanation:
The annual break-even sales level for the number of pizzas sold in the location is computed using the break-even sales units formula below:
break-even sales=fixed costs/contribution margin per pizza
fixed costs=$245,000
contribution margin per pizza=selling price-variable cost
selling price=$12.50
variable cost=selling price*42%
variable cost=$12.50*42%
variable cost=$5.25
contribution margin per pizza=$12.50-$5.25
=$7.25
break-even sales=$245,000/$7.25
= 33,793 pizzas
Marginal utility is the <u>"change in total utility obtained by consuming one more unit of a good".</u>
Marginal utility evaluates the additional satisfaction a customer earns from consuming extra units of products or services. The idea of marginal utility is utilized by economists to decide the amount of a thing buyers are happy to buy. Positive peripheral utility happens when the utilization of an extra thing builds the total utility, while negative marginal utility occurs when the utilization of an extra thing diminishes the total utility.
Answer:
B. Improved adjustment to technological changes.
Explanation:
Vertical Integration: It is a strategy to gain competitive advantage by taking complete control over a few stages of production or distribution. The company implements vertical integration to reduce the cost of production, reduce dependence on others, improve the quality of the product, etc.
In the given case, the company pursuing vertical integration can gain market power over its competitors through improved quality, reduction in cost, and reduction in operation cost, however, it does not improve adjustment to technological changes.
Quality control is a system maintaining standards in manufacturing products by testing a sample of the output against the specification.
Quality control is used to meet or exceed customer requirements and is vital in the manufacturing part of businesses.
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