Answer:
C. Decrease by $7,000
Explanation:
Calculation to determine what company's overall operating income would Decrease by
Using this formula
Overall operating income =(Product X units*Contribution margin )-Fixed overhead eliminated
Let plug in the formula
Overall operating income=(5,000 units*$5)-$18,000
Overall operating income=$25,000-$18,000
Overall operating income=$7,000 Decrease
Therefore As a result of discontinuing Product X, the company's overall operating income would:Decrease by $7,000
Answer:
a. the flow of relevant information to the decision maker should be enhanced
Explanation:
Decision making is very crucial in every business institution and organisation.
Results of decisions can help to foster rapid development or hamper the progress of a company.
- When moving decision making arm from the periphery to the center, communication should be restrategized.
- Since the periphery arm is at the fringe, better strategies which will help to avoid road blocks through bureaucracies in an organization must be eliminated.
- There should be proper flow of important information to decision makers which will help further the interest of an organisation.
Answer: a. Foreign direct investment
b. Foreign portfolio investment
Explanation:
a. Opening a retail store in a foreign country is a foreign direct investment. This simply means a scenario whereby one establishes a business in another country that is different from ones own country. For example an American establishing a business in Japan is a foreign direct investment.
b. Buying corporate stock in a retail chain in a foreign country is a foreign portfolio investment. This is a situation when one buys shares, bonds etc in another country.
