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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.

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Cabell Products is a division of a major corporation. Last year the division had total sales of $25,320,000, net operating incom
Pie

Answer:

ROI = Net operating income        x 100

         Average operating assets

ROI = $1,924,320   x 100

         $6,000,000

ROI = 32.1%

The correct answer is C

Explanation:

ROI is the ratio of net operating income to average operating assets multiplied by 100.

7 0
3 years ago
Ramble On Co. wishes to maintain a growth rate of 8 percent a year, a debt-equity ratio of 0.37, and a dividend payout ratio of
Delvig [45]

Answer: 16.55%

Explanation:

Profit margin is the amount of earnings that a company has left when every expenses and costs have been deducted.

From the information given, firstly, we calculate the return on equity. This will be:

= Growth rate /(1 + Growth rate) × Retention ratio

= 8% / (1 + 8%) × 46%

= 0.08/(1 + 0.08) × 0.46

= 0.08/1.08 × 0.46

= 0.08/0.4968

= 0.1610

= 16.10%

Return on equity, ROE = 16.10%

We then calculate the profit margin. This will be:

= ROE / Asset turnover × Equity Multiplier

where,

Equity Multiplier = 1 + debt-equity ratio

= 1 + 0.37 = 1.37

Profit margin = ROE / Asset turnover × Equity Multiplier

= 16.10% / {(1/1.41) × 1.37}

= 16.10% / 0.71 × 1.37

= 0.1610 / 0.9727

= 0.1655

Profit margin = 16.55%

6 0
3 years ago
Managing economic exposure is generally perceived to be ____ managing transaction exposure. a. more difficult than b. less diffi
Anit [1.1K]

Answer:

the correct answer is a. more difficult than

Explanation:

Unlike Transaction exposure, economic exposure is difficult to predict and difficult to mitigate in an event of occurence, thus making it harder to manage than transaction exposure.

This is mainly because economic exposure can happen due to various macro economic factors and international political incidents.

6 0
2 years ago
Read 2 more answers
In year 1, the Consumer Price Index was 120 and the average nominal income was $30,000. In year 2, the Consumer Price Index was
Cerrena [4.2K]

Answer:

Real income has increased by $720 in terms of dollar and 2% in percentage

Explanation:

<em>The real income is determined by adjusting the nominal income for inflation. The consumer price index (CPI) is used to measure the rate of inflation.</em>

R<em>eal income = Nominal income × CPI Base year/ CPI in current year</em>

Real Income =         32000 × 120/125

                                =$30,720

Change Real income

Change in real income ($) = 30,720 - 30,000

                                        = $ 720  

Change in real income (%)  =  (720/30,000) × 100

                                      = 2%

Real income has increased by $720 in terms of dollar and 2% in percentage

                     

3 0
3 years ago
What is the biggest attraction for business considering enganing in international business?
kvasek [131]
Option D. The size of the market

This is because they have an idea that with a larger market size the can gain economies of scale and make a larger profit.
3 0
3 years ago
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