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horsena [70]
3 years ago
6

What is implied when the total cost of producing Q1 and Q2 together is less than the total cost of producing Q1 and Q2 separatel

y? A. Diseconomies of Scale B. Economies of Scale C. Diseconomies of Scope D. Economies of Scope
Business
1 answer:
KonstantinChe [14]3 years ago
5 0

Answer:

The correct answer is D. Economies of scope.

Explanation:

The Economies of scope means the reduction of the average costs under the production of two or more products or services together. This must always be observed in the production process, in order to strategically plan the entire internal production process of the company. By implementing this type of joint production, great savings are achieved in own production factors, seeking effective diversification in the market.

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UkoKoshka [18]

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8 0
3 years ago
The owner of a bicycle repair shop forecasts revenues of $160,000 a year. Variable costs will be $50,000, and rental costs for t
Roman55 [17]

Answer and Explanation:

The preparation of the income statement is presented below:

<u>Particulars        Amount </u>

Revenue           $160,000

Less:

Rental Costs       $30,000

Variable Costs     $50,000

Depreciation       $10,000

Profit before tax $70,000

Tax at 35%     -$24,500

Net Income     $45,500

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6 0
2 years ago
A company's current sales are $300,000 and fixed expenses total $225,000. The contribution margin ratio is 30%. The company has
Anna [14]

Answer:

Increase by $6,000

Explanation:

Calculation to determine the net operating income

Using this formula

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