A country would have a comparative advantage to produce a good if the cost of producing this good, even if it produces efficiently, is higher than that of other countries.
Explanation:
The Competitive Vantage Principle explains how an individual produces more commodities and uses fewer goods with a comparative advantage under freer trade.
For example, the comparative advantage of oil-producing countries in chemical products. Compared to countries that are not there, the local manufactured oil is a cheap source of chemicals.
It can produce products with fewer resources, which offers countries a comparative advantage at lower incentive costs. The PPF's gradient reflects the cost of output capacity. Improving one good's production means producing less of one.
Answer:
I would fire Gary.
Explanation:
Even if Gary has a better sales record, he seems to be unable to keep good personal relationships, both with coworkers and clients. This in the long-run could become more problematic and lead to a decline in sales record, and also, a decline in other areas.
Brenda, on the other hand, needs to improve her sales record, but she has strong interpersonal skills that give her an advatange. It is easier to teach a person how to sell than how to be a well-mannered person, therefore, in theory, if should not be so difficult to help Brenda reach higher sales.
Answer:
: $4,610
Explanation:
The allowance for uncollectible accounts should be 2% of accounts receivable. So first we wil find out the 2% of $268,000.
($268,000 x 2%) = $5,360
Then we will subtract the $750 allowance for uncollectible accounts before any adjustments.
$5,360 - $750 = $4,610
The amount of the adjusting entry for uncollectible accounts would be: $4,610.
Answer:
Radar's additional income for accepting the order is calculated as follows:
Sales - 320 x $460 = $147,200
less Cost of Sales = 320 x $180 + $48,000 = $105,600
Additional Income = $41,600
Explanation:
The additional income of $41,600 is $147,200 - $105,600, which is the result of deducting cost of sales from Sales.
The cost of sales includes the variable cost per bike, including the incremental fixed costs ($48,000) to make this order.
To make a decision whether to accept an order or not, the company needs to consider all variable costs, including the incremental fixed costs. The resulting additional income is what is available to offset the fixed costs.
Answer:
50%
Explanation:
Given: Selling price= $120 per unit.
Variable cost= $60 per unit.
First computing contribution margin.
Contribution margin= 
⇒ Contribution margin= 
∴ Contribution margin= 
Now, calculating the contribution margin ratio.
Contribution margin ratio= 
⇒ Contribution margin ratio= 
∴ Contribution margin ratio= 
Hence, the product´s contribution ratio is 50%.
