<span>The fact that the management of the diffusion research company when receives proposal for a new research, first estimates the cost of conducting the research and delivering the final research report and then, attempts to reduce the costs through efficient operations and tries to maximize revenue by satisfying its customers' requirements means that the </span>diffusion research company uses a profit-oriented pricing objective.
Answer: interdependence
Explanation:
Price fixing - incorrect. This is an illegal practise where 2 competing companies from the same market unlawfully agree that they won't sell their goods below a specific price. Hewlett - Packard and Dell did not enter into an agreement to limit their sales prices to a specific amount.
Cutthroat competition - incorrect. This is a practise where competitors within the same market aim to cripple or even eliminate their competition, by using heavy promotion or predatory pricing techniques (setting low prices to try an remove rivals). Hewlett - Packard is not aiming to use destructive techniques to eliminate Dell, and in this case isn't even considering lowering it's prices at all.
Collusion - incorrect. This is an illegal secret conspiracy, usually committed by competitors joining forces to mislead and deceive others within or linked to the market. This doesn't apply as Hewlett Packard 's intentions not to raise prices aren't to deceive Dell and other competitors. Further Hewlett - Packard has not made a secret pact of any form with its competitors.
Interdependence - correct. Interdependence is companies relying on each other to fulfil their objectives. Hewlett Packard relies on its competitors and how they will behave to a change in prices and other economic factors. The market is quite fragile, so any change by a company could have chain - reaction level effects to other companies and its customers operating within that same market. Both companies thus need each other in order to succeed.
Answer:
![\left[\begin{array}{cccc}$unit sale&100000&90000&80000\\$sales revenue&3500000&3150000&2800000\\$COGS&&&\\$Material&900000&810000&720000\\$Labor&1000000&900000&800000\\$VMO&250000&225000&200000\\$FMO&80000&80000&80000\\$total&2230000&2015000&1800000\\$gross profit&1270000&1135000&1000000\\$V S and A&100000&90000&80000\\$F S and A&950000&950000&950000\\$operating income&220000&95000&-30000\\$tax expense&66000&28500&\\$net income&154000&66500&-30000\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bcccc%7D%24unit%20sale%26100000%2690000%2680000%5C%5C%24sales%20revenue%263500000%263150000%262800000%5C%5C%24COGS%26%26%26%5C%5C%24Material%26900000%26810000%26720000%5C%5C%24Labor%261000000%26900000%26800000%5C%5C%24VMO%26250000%26225000%26200000%5C%5C%24FMO%2680000%2680000%2680000%5C%5C%24total%262230000%262015000%261800000%5C%5C%24gross%20profit%261270000%261135000%261000000%5C%5C%24V%20S%20and%20A%26100000%2690000%2680000%5C%5C%24F%20S%20and%20A%26950000%26950000%26950000%5C%5C%24operating%20income%26220000%2695000%26-30000%5C%5C%24tax%20expense%2666000%2628500%26%5C%5C%24net%20income%26154000%2666500%26-30000%5C%5C%5Cend%7Barray%7D%5Cright%5D)
Explanation:
<em></em>
<em>We will cross-multiply the variables concept like sales revenues materials, labor and other</em>
I.G
<em>sales revenues for 90,000:</em>
3,500,000 / 100,000 x 90,000 = 3,150,000
<em>for 80,000:</em>
3,500,000 / 100,000 x 80,000 = 2,800,000
<em></em>
The fixed will remain at the same value between the relevant range so we do not change them.
For the tax expense we will have to check which is the rate
for 220,000 operating income the tax expense is 66,000
we can solve for rate: 66,000/220,000 = 0.3 = <em>30%</em>
Now we will determinate the tax expense with that rate.
<em>NOTE</em> attached missing information
Answer:
$38,500
Explanation:
The computation of the depreciation expense is shown below:
a) Straight-line method:
= (Original cost - residual value) ÷ (useful life)
= ($180,000 - $26,000) ÷ (4 years)
= ($154,000) ÷ (4 years)
= $38,500
In this method, the depreciation is same for all the remaining useful life
We simply applied the above formula so that the depreciation expense could come
