Answer:
Bill and Ted's contribution margin for the first month is $790
Explanation:
Contribution margin per unit is the amount that each additional unit sold contributes towards a company’s fixed costs and profit and calculated by following formula:
Contribution Margin per Unit = Sales Price – Variable Cost per Unit
The company had 10 service calls each earning $99 revenue per call and variable costs amounting to $20 per call
Contribution Margin per Unit = $99 - $20 = $79
Bill and Ted's contribution margin for the first month = $79 x 10 = $790
Answer:
Option C
Explanation:
In simple words, single sourcing refers to the method under which an organisation places orders for its raw material from a single supplier. This practice is implemented due to the advantages such as discounts that one might get from purchasing from a single entity and also the schedule for deliverers can be scheduled as per one own needs.
However such method is useful only for small orders and it burdens on the flexibility which makes the entity awfully dependent on supplier.
Answer:
Option ( a ) is Correct
Explanation:
Emphasizes that it is difficult to develop and sustain a competitive advantage based on resources alone.
A firm can not sustain and develop a sustainable competitive advantage solely based on resources there are many more things that firms shroud consider like these resources should be inimitable.
Most definitely and without a doubt C
Answer:
C. Unlike incumbent firms, new entrants do not have formal organizational structures and processes.
Explanation:
Having a structure and processes is good for an organization as this often guide any course of action . However, these structures sometimes seems to be too cumbersome and also take a longer process to build hence not immediately preferred by new entrants. Moreover, incumbent firms prefer incremental innovation to radical innovation due to the disruption that will be caused to existing structures if radical innovation is chosen.
For new entrants, it is somewhat easier for them to involve in radical innovation unlike incumbent firms because of absence of structure and processes which takes time to be built and implemented.