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liq [111]
3 years ago
12

In most high-tech industries, the fixed costs of developing a product are very _____, and the costs of producing one extra unit

of the product are very _____.
Business
1 answer:
topjm [15]3 years ago
7 0

Answer:

Fixed costs are high, variable costs are low

Explanation:

The reason is that the fixed costs are high because these fixed costs are uncontrollable and their might not be an alternative which means we have to move with higher fixed costs. And this is because most of tasks in manufacturing are handled by the machines not humans. So the cost of maintenance, depreciation, etc are fixed costs which are uncontrollable.

Furthermore, the company has very small variable costs because the company enjoys economies of scales, fast paced manufacturing machines, etc. And this is controllable by investments in another more robust machinery.

You might be interested in
A firm'sprofit margin when ignoring the effects of financing is 20% with an EBIT of $1.5 million and sales of $5 million. How mu
nordsb [41]

Answer:

The firm paid taxes of $0.5 million

Explanation:

Profit margin is the percentage of net income to its sales. It is calculated as follow:

Profit Margin =  ( Net profit /  Sales ) x 100

20% = (Net profit / 5 million) x 100

(20/100) x 5 million = Net profit

Net profit = 1 million

EBIT is the earning before the payment of interest expense and tax. It is the net of Gross profit and operating expenses.

net income is calculates from EBIT as follow

Net Income = EBIT - Interest expense - Tax

1 = 1.5 - $0 - Tax (ignoring the effect of financing)

Tax = $1.5 - $1

Tax = $0.5 million

5 0
3 years ago
Entry of new firms into monopolistically competitive industries is relatively easy because ______. Multiple choice question. exi
prisoha [69]

Entry of new firms into monopolistically competitive industries is relatively easy because capital requirements are low. Thus the correct answer is D.

<h3>What is a monopoly?</h3>

A monopoly refers to a firm that has a single authority in the market and controls the market completely. In a monopoly, there is a single rule and an absence of competition.

Monopolistic competition describes a competitive market in which a small number of sellers give clients near alternatives. It is a market system in which a large number of enterprises compete in the same industry.

Each firm runs on its own, producing comparable but production of innovative products, with no concern for what other companies are doing. These types of firms are very easy to enter and exit the market.

Therefore, option D with low capital requirements is the correct answer.

Learn more about monopoly, here:

brainly.com/question/18459447

#SPJ1

5 0
1 year ago
Dulce Corporation had 200,000 shares of common stock outstanding during the current year. There were also options for 10,000 sha
Nimfa-mama [501]

Answer:

$19.80

Explanation:

The Diluted EPS of Dulce Corporation shall be determined through the following mentioned formula:

Diluted EPS=Net income/Number of outstanding shares

Net income= $4 million

Number of outstanding shares=Common stock shares+shares issued for free due to share options

Common stock shares=200,000

shares issued for free due to share options=Number of options*Intrinsic value/market price of common shares

Number of options=10,000

Intrinsic value=market price-exercise price=$25-$20=$5

Shares exercised due to share options=10,000*5/25=2,000

Diluted EPS=$4,000,000/200,000+2,000

                   =$19.80

3 0
3 years ago
A bank is negotiating a loan. The loan can either be paid off as a lump sum of $80,000 at the end of four years, or as equal ann
REY [17]

Answer:

$18,287.32

Explanation:

We use the PMT formula i.e shown in the attachment below:

Data provided in the question

Present value = $0

Future value = $80,000

Rate of interest = 6%

Time period = 4 years

The formula is shown below:

= NPER(Rate;PMT;PV;-FV;type)

The future value come in negative

So, after solving this, the annual payments should be made is $18,287.32

6 0
2 years ago
Case A:
RUDIKE [14]

Answer:

What do u mean by this pls be less specific

6 0
3 years ago
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