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guajiro [1.7K]
3 years ago
12

According to the five forces model, an attractive industry would include all of the following characteristics EXCEPT: a. low thr

eat of substitute products. b. high supplier power. c. low bargaining power of buyers. d. high barriers to entry.
Business
1 answer:
ioda3 years ago
7 0
<h2> b. high supplier power does not belong to the characteristics of attractive industry according to the five forces model.</h2>

Explanation:

There are 4 industrial rivalry. They are

  1. Threat of Entry
  2. Bargaining power of supplier
  3. Threat of substitute
  4. Bargaining power of buyers

The above listed determines the level of competition in the industry and its structure.

An attractive industry will yield more profits. It constitutes of all the things mentioned in the question except, for the fact that it need weak supplier bargaining power.

Where as an unattractive industry will yield less profit and it is quite opposite to attractive industrial characteristics.

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A bank owns a 10-story office building. In the bank's balance sheet, this would be listed as part of?
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3 years ago
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the
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Answer:

Split-off point:

The split-off point is the point at which products from the joint process appear and are identified.  The costs which are incurred up to the split-off point are called joint costs and the costs that are incurred after the split-off point are called as

Separable costs. Some joint products which emerge from joint process can be sold at the split-off point or some products can be put to further processing.

Compute the profit or loss from the three products as shown below'

Description                                                              A               B               C

Selling price after further processing                    20              13              32

Selling price at the split off point                            16               8        25

Incremental revenue per pound or gallon             4               5         7

Total quarterly output in pounds or gallons     $15,000    $20,000    $4,000

Total incremental revenue                              $60,000   $100,000  $28,000

Total incremental processing costs              $63,000   $80,000  $36,000

Total incremental profit or (loss)                       ($3,000) $20,000  ($8,000)

Therefore the products A and C are need to be sold at the split off point and he product B should be processed further to earn good profits.  

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3 years ago
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