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Katarina [22]
3 years ago
10

Eliminating the Drafty product line would eliminate $45,000 of direct fixed costs. The $78,000 of common fixed costs would be re

distributed to Blowing Sand’s remaining product lines. Will Blowing Sand’s net operating income increase or decrease if the Drafty model is eliminated? By how much?
Business
1 answer:
bagirrra123 [75]3 years ago
6 0

Answer:

The Blowing's sand net income will increase by $45,000 by saving of direct fixed costs.

Explanation:

Fixed costs are costs which remains unchanged irrespective of the level of activity produced by Blowing Sand's, means the Blowing Sand's will have to bear that cost whether it eliminate the Drafty product line or not. example factory rent, building depreciation etc.

Direct Fixed costs are those which only incurred when the units are produced so that will only incur costs when production is made.

So the elimination of Drafty product line will save $45,000 of direct fixed costs and the remaining $78,000 will be redistributed to other remaining product lines which will not impact the net income.

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Firms in every market structure: make long-run economic profits. are in competition with many other firms. leave the market as s
aliya0001 [1]

Answer:

b. False

Explanation:

Firms are not in competition with many other firms in every market structure. Some market structures such as monopolies or oligopolies feature either one single firm, or only a few firms, that frequently collude instead of competing.

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3 years ago
Morris' company decided in the beginning of 2017 that they need to make $6,000,000 worth of improvements starting january 1, 202
Ne4ueva [31]
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Marketers have no flexibility in setting prices under conditions of
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3 years ago
Lilly Ann went to the pet store with her mother to buy a gerbil. After choosing her gerbil, she and her mother went to look at c
iogann1982 [59]

Answer:

The answer is "b" - Customization

Explanation:

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It is also known as product personalisation. This is evident in the given situation, as Lilly Ann can customize the cage according to her own preferences.

<u>Standardization</u>

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<u>Mass customization:</u>

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<u>Mass production:</u>

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7 0
3 years ago
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