Answer:
Have defined value creation too narrowly in terms of financial performance thereby contributing to black swan events ( B )
Explanation:
Black swan events are events that come as a surprise to a company or individual with great / devastating effects and these events are usually due to inappropriate foresight to the problem.
A company that generates huge profits is not supposed to reduce the maintenance budget because ill maintained equipment will not result to efficient production and huge profits. the leaking of their pipelines and the significant environmental problem is an example of the Black swan event due to the trimming of maintenance budget by the Management.
Answer:
A. becomes a variable cost
Explanation:
Fixed costs are the expenses that remain constant in a period. During the period under review, fixed costs do not change regardless of the level of output. Fixed costs are mostly made up of overheads such as rent , depreciation, and administrative salaries.
Fixed cost remains constant in a particular financial year. In the long run, business budgets and projections tend to change, resulting in changes to the fixed cost. In other words, in the long run, fixed costs will change. Therefore, in the long run, all costs are variable expenses.
Answer:
siness and Industry Endorsement.
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Explanation:
Answer:
a) Regular coffee cups required to be sold = 4,690
b) Latte cups required to be sold = 2,010
Explanation:
As per the data given in the question,
For computing Contribution per mix :
Particulars Regular Coffee Latte
Sales price $1.60 $2.80
Less: variable cost $0.90 $1.70
Contribution $0.70 $1.10
Contribution per mix = ($0.70 × 70%) + ($1.10 × 30%)
= $0.82
Breakeven point at sales mix = Fixed cost ÷ Contribution per mix
=$5,494 ÷ $0.82
= 6,700 mixes
Requirement:
Cups of regular coffee for breakeven = Breakeven at sales mix × %of regular coffee sales
=6,700 × 70%
= 4,690 Cups
Cups of latte for breakeven = Breakeven at sales mix × %of latte sales
=6,700 × 30%
=2,010 Cups
