Answer:
Product XYZ should not be dropped. Because it is bringing a profit contribution of $5,000 towards fixed costs.
Explanation:
<u>Calculating the Profit Contribution of Product XYZ</u>
Sales revenue $60,000
Less Cost of Goods Sold ($40,000)
Contribution Margin $20,000
Less Traceable Fixed Costs ($30,000 - $15,000) ($15,000)
Profit Contribution $5,000
Hint : Remove the fixed cost element centrally controlled from Product XYZ fixed costs.
Since Product XYZ is bringing a profit contribution of $5,000 towards the fixed costs, it should not be dropped.
The correct answer should be b. indirect investment in real estate
This is indirect purchase because it is done through an investment fund or a private company, in this case through a syndicate.
In the telecom industry, the threat of new entrants is most likely low.
Threat of New Entrants<span> is a factor that analyzes how </span>likely it is for a new entrant to enter the competitive environment a company operates. Because the telecom industry in New Taria is <span>characterized by the presence of strong network effects, high brand loyalty, high economies of scale it is very unlikely for a new telecommunication operator to enter the industry.</span>
Answer:
D, Take actions that are appropriate to reach goals given available information.
Explanation:
Rational in economics can be said to be a situation where an individual or company takes the best decisions to reach his/her or its goals.
This could also mean that the ability to make a decision that maximizes the accomplishment or benefits for an individual.
cheers.