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Assoli18 [71]
3 years ago
11

Jan's Bakery is considering a merger with Tina's Cookies. Jan's total operating costs of producing services are $300,000 for a s

ales volume of $2 million. Tina's total operating costs of producing services are $75,000 for a sales volume of $600,000. If the two firms merge, calculate the total average cost for the merged firm assuming no synergies.
Business
1 answer:
My name is Ann [436]3 years ago
8 0

Answer:

Jan's Bakery and Tina Cookies

Total Average Cost for the merged firm

= ($300,000 + $75,000)/2

= $187,500

Explanation:

The total average cost for Jan's Bakery and Tina's Cookies is the average of their total operating costs.  This is obtained by adding $300,000 to $75,000 and then dividing by 2.

Though, in practical terms, the presence of some synergies will cut some of the operating costs off, especially such costs as rent, advertising, and some other administrative costs.  Some selling costs will also be eliminated when the merger goes through.

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sergejj [24]

Answer:

The answer is C.

Explanation:

Reducing tax rate according to supply - side policy creates demand pull inflation.

Demand pull inflation is a situation whereby people have more buying power due to the availability of cash thereby leading to high demand and consequentially leading to an increase in the price of goods and services by suppliers.

That is the process where demand outplays supply due  to the high purchasing power thereby causing price to increase which is the demand pull inflation effect.

6 0
3 years ago
A characteristic found only in oligopolies is products that are slightly different. interdependence of firms. break even level o
Delvig [45]

Answer:

The correct answer is the interdependence of firms.  

Explanation:

An oligopoly market is a market structure where there are a few firms. these firms are interdependent. Price and output decisions of a firm affect its rivals. An oligopoly firm faces a downward-sloping demand curve.  

In other market structures like monopolistic or perfect competition, the firms are not interdependent.

7 0
3 years ago
In July 2012, a small chocolate factory receives a large order for chocolate bars to be delivered in November. The spot price fo
Anettt [7]

Answer:

$24,530, $23,530

Explanation:

Incomplete word <em>"and if the spot price in September proves to be $2,300."</em>

<em />

Note that Call options will be exercised only if the price on expiry is greater than strike price

Strike price = $2400

Premium paid = $53 for each contract, so the total premium paid = $530 for 10 contracts

<u>CASE 1</u>

Price = $2600

As price on expiry=2600 > Strike price=2400

Call option will be exercised.

Company will pay = $2400 * 10+530 = $24,530

<u>CASE 2</u>

Price = $2300

As price on expiry=2300 < Strike price=2400

Call option will not be exercised and will purchase from open market

Company will pay = $2300 * 10+530 = $23,530

4 0
2 years ago
While business plans are designed to change, a company’s mission statement should remain the same.
bogdanovich [222]

Answer:

I believe that the answer would be true

Explanation:

4 0
3 years ago
Variable costs are Group of answer choices
Alex

Answer:

B) costs that change with the level of production.

Explanation:

Variable costs are costs that change according to the total production output.

The two main cost components in the production process are fixed costs, which remain to be paid even if the firm shuts down temporarily, and variable costs, which are subject to change according to the level of production.

Therefore, the answer is alternative B)

4 0
3 years ago
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