The reasons why producers choose to specialize are:
- to gain a comparative advantage
- to increase efficiency.
<h3>What is specialization?</h3>
Specialization is when a producer concentrates on the production of some particular goods and services.
Advantages of specialisation
- It increases economies of scale
- It increases the efficiency of the producer
To learn more about comparative advantage, please check: brainly.com/question/25139916
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Answer:
Option A is correct one.
<u>Managing & Franchising s asset turnover ratio at 17.6% suggests inefficiency when compared to Hotel Ownership</u>
Explanation:
The ratio of the operating return on sales for hotel ownership is:
474/1886 = 0.25
The asset turn-over for hotel ownership is :
1886/492.5 = 0.38 = 38%
Now, for managing and franchising :
The ratios are:
Operating return to sales = 113/ 120 = 0.94
Asset Turnover = 120/680 = 0.1765 = 17.65%.
Answer:
The total value of this firm if you ignore taxes is $16 million.
Explanation:
Considering that the company has decided to borrow $1 million to buy out the shares of a deceased stockholder who holds 2,500 shares, hence to calculate the total value of the firm we have to first make the following calculation:
$1,000,000÷2,500= 400
Hence, Total value of the firm= 400×40,000 shares of stock outstanding
= $16 million is the total value of this firm if you ignore taxes.
Answer:
An example of external failure cost is:
Scrap and rework during production
Explanation:
External failure cost is the concept used in the finance, business, and management sciences to qualify the loss of a business after a product is sold. Examples involve lawsuits, legal fees, returns, etc. Now, the argument behind the answer is that warranty claims on handling are not part of the company, but the carrier and the retailer company. but scrap and rework during production is an external failure cost because after the production and selling scrap and rework during production will remain.
Answer:
A
Explanation:
Contribution margin is used to determine the profitability of a product. it is price less variable cost
Contribution margin = price - variable costs
Price = revenue / quantity sold
$440,000 / 11,000 = 40
Variable cost = total variable cost /output
$110,000 / 11,000 = 10
contribution margin = 40 - 10 = 30