All categories

3 years ago

Explain whether you agree or disagree with the following statement.

Business

1 answer:

butalik [34]3 years ago

7 0

Answer: AGREE

Explanation:

A Monopoly faces no competition and are the only sellers of the product they sell. If firms in an industry successfully engage in collusion, the resultant effect will definitely be not unlike a Monopoly because they will set prices as a single firm, control output as a single firm and essentially run the market as a single firm.

They will sell at a rate where the Marginal Revenue curve will be below the demand curve. This will mean a higher price than a competitive market which was probably the main incentive for collusion.

A recent example would be the collusion between BMW, Daimler and Volkswagen, to hinder technological progress in improving the quality of vehicle emissions in order to reduce the cost of production and maximize profits. Thankfully this was busted by the European Commission in 2019.

You might be interested in

Directions: After reading the texts, choose the best answer for the multiple-choice questions below and respond to

creativ13 [48]

Answer:

Their study of data from the Gallup-Healthways Well-Being Index found that while “life evaluations rise steadily with income,” emotional well-being drops off at about $75,000 a year. Beyond $75,000, money is important for life evaluation but does nothing for happiness, enjoyment, sadness, or stress.

Explanation:

6 0

2 years ago

Read 2 more answers

Free Spirit Industries Inc.’s marketing sales director doesn’t think that the market for the firm’s goods is big enough to sell

RSB [31]

Answer:

In the attached the fixed costs is $12,000,000

selling price is $41.50

variable cost is $12.80

The price for the target EBIT of $15 million is $167.09

Explanation:

target units=fixed costs+target EBIT/selling price-variable cost

target units is 175,000

fixed costs of $12,000,000

target EBIT of $15,000,000

variable cost is $12.80

selling price is unknown,let assume is X

175,000=($12,000,000+$15,000,000)/X-12.80

175,000=27,000,000/X-12.80

175,000*(X-12.80)=27,000,000

X-12.80=27,000,000/175,000

X-12.80=154.29

X=154.29+12.80

X=$167.09

EBIT=Sales units*(selling price-variable cost)-fixed costs

Download xlsx

6 0

3 years ago

A firm's database showed that the average value of all inventory items for the year was $7,650. the cost of goods sold was rep

Rainbow [258]

5 weeks
There are 52 weeks per year and since the company closes for 2 weeks per year, that means that the company does business for 50 weeks each year. During that year, the company sold goods that cost $76,500. And the average inventory was $7,650 which is $7,650 / $76,500 = 0.10 = 10% of the goods sold for the entire year. So the average inventory could allow the company to work for 10% of the year. And 10% of 50 is 5. Therefore the company had 5 weeks of supply on average in inventory.

6 0

3 years ago

1. Inventory that consists of the costs of the direct and indirect materials that have not yet entered the manufacturing process

Luba_88 [7]

Answer:

materials inventory

Explanation:

An inventory is a term used to describe a list of finished goods, goods still in the production line and raw materials that would be used for the manufacturing of more goods in a bid to meet the unending consumer demands.

Basically, an inventory can be classified into three (3) main categories and these are; finished goods, work in progress, and raw materials.

An inventory is recorded as a current asset on the balance sheet because it's primarily the most important source of revenue for a business entity.

Generally, the three (3) main cost concept associated with an inventory include;

1. First In First Out (FIFO).

2. Last In First Out (LIFO).

3. Weighted average cost.

In Financial accounting, direct cost can be defined as any expense which can easily be connected to a specific cost object such as a department, project or product. Some examples of direct costs are cost of raw materials, machineries or equipments.

On the other hand, any cost associated with the running, operations and maintenance of a company refers to indirect costs. Some examples of indirect costs are utility bill, office accessories, diesel etc.

Materials inventory can be defined as an inventory that comprises of direct and indirect materials costs which have not been used in a manufacturing process.

6 0

2 years ago

Consider the following cash flows of two projects for Fontana Rubber Parts Company. Assume the discount rate for Fontana Rubber

marta [7]

Answer:

Year Dry Prepreg discounted cash flow

0 -$30,000 -$30,000

1 10,000 8,772

2 10,000 7,695

3 10,000 6,750

4 10,000 5,921

5 10,000 5,194

Year Solvent Prepreg. discounted cash flow

0 -$90,000 -$90,000

1 28,000 24,561

2 28,000 21,545

3 28,000 18,899

4 28,000 16,578

5 28,000 14,542

a. Calculate NPV, IRR, MIRR, payback, and discounted payback for each project

Dry Prepreg

NPV = $4,330

IRR = 19.86%

MIRR = 17.12%

payback = 3 years

discounted payback = 4.17 years

Solvent Prepreg

NPV = $6,130

IRR = 16.80%

MIRR = 15.51%

payback = 3.21 years

discounted payback = 4.58 years

b. Assuming the projects are independent, which one(s) would you recommend?

both projects, since their NPV is positive

c. If the projects are mutually exclusive, which would you recommend?

Dry prepreg becuase its IRR, MIRR are higher, and its payback and discounted payback periods are shorter.

7 0

2 years ago