Answer:
c. Subtract total satisfaction from consuming N - 1 (first) products from total satisfaction from consuming N products
Explanation:
By definition, marginal utility of consuming one more unit of product or service is the additional satisfaction of consuming that unit of product or service.
That additional satisfaction from (consuming) the Nth products = total satisfaction from (consuming) all N products - satisfaction from consuming (first) N - 1 products
(first) should be added, because you are finding the satisfaction from the last consumed product.
Answer:
a. In the 17th century, the Dutch East India Company allied with a powerful leader in Indonesia to gain exclusive access to spices, and during the company’s existence, it carried about five times the shipping tonnage of its nearest competitor, an English company.
b. In the 1970s, the Sumitomo Bank of Japan bailed out two major corporate customers at a cost of over $1 billion, greatly hurting its profitability. However, its loyalty to its customers enhanced its reputation, and by 1981 it was Japan’s most profitable financial institution.
d. The Finnish company Stora Enso appeals to the world’s desire to use renewable resources by developing new packaging, paper, textile, and other products based on sustainably grown wood. Quarterly profit recently rose 38% year over year, and the company has garnered much recognition from environmental groups.
Explanation:
Basically there are 3 types of strategies that a company can carry out to try to gain a competitive advantage over its rivals:
- cost leadership strategy: sell the company's products at the lowest price usually through economies of scale. E.G. DUTCH EAST INDIA COMPANY
- differentiation strategy: sell a unique and different product, usually high quality or innovating products. E.G. SUMITOMO BANK
- focus strategy: focus the company's products towards a narrow target segment (niche) either through cost leadership or differentiation. E.G. STORA ENSO
Answer:
decrease by 305,000 dollars
Explanation:
Sales 3,300,000
Variavle cost:
materials 710,000
labor 760,000
overhead 560,000
S&A <u> 330,000 </u>
total (2,360,000)
contribution 940,000
<u>fixed cost:</u>
tracable <u> (635,000)</u>
operating income 305,000
allocated <u> (560,000)</u>
net (255,000
The canoes division absorbs 305,000 of the common fixed cost
If discountinued the company as a whole will see their net income decreases by this amount. In the short run, the company should only discontinued a project or division when it is not able to afford their own cost. That is not the case, canoes division afford their own cost is the allocated from other activities of the company that generates this loss.
