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Leya [2.2K]
3 years ago
6

Which of the following factors should be considered when deciding whether to keep a product line or drop it? Check All That Appl

y a. Opportunity costs of using the production facility currently being used for the product line b. Opportunity costs of using the production facility currently being used for the product line c. Revenues generated by the product line Revenues generated by the product line d. Variable costs incurred in manufacturing the product e. Variable costs incurred in manufacturing the product f. Direct fixed costs associated with the product line g. Direct fixed costs associated with the product line h. Common fixed costs allocated to the product line i. Common fixed costs allocated to the product line j. Research and development costs spent on designing the product line
Business
2 answers:
Kay [80]3 years ago
7 0

Answer:

a. Opportunity costs of using the production facility currently being used for the product line

c. Revenues generated by the product line

d. Variable costs incurred in manufacturing the product

f. Direct fixed costs associated with the product line

Explanation:

We should check making the analysis considering the product line as cost object therefore, we should only look at the direct cost of the line and check if it profitable or not at this level.

Then, the line may not be able to generate sufficient profit for their entire indirect cost (allocate fixed cost) but, it bear a portion of them therefore, cutting the line will make the bottom line of the firm worse as these portion will be split into the other lines.

OLEGan [10]3 years ago
7 0

Answer:

The correct answers are the options: A and C.

A: Opportunity costs of using the production facility currently being used for the product line

C: Revenues generated by the product line.  

Explanation:

To begin with, a <em>product line</em> is the name that receives, in the marketing and business field, the concept that refers to a group of products that are related to each other and being sold to the market audience.

To continue, in order to know whether to keep it or to drop it, the company should focus its primary attention in the opportunity costs of using the production facility currently being used for the product line because that cost will show how much the company could be earning if they were using the facility for other product, so that means that this cost is the most important one to understand if there is a product that worth more or not. And the other factor that the organization should care about is the proper revenues that are being made in that product line, if the revenue is a great number then the variable and fixed costs of the product line will not matter.

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Shelley was initially moderately in favor of a proposal to build a city bike path. At a meeting, she learns that not only will t
Gnesinka [82]

Answer:

The appropriate response is "Persuasive arguments".

Explanation:

  • A noninteractional concept or philosophy of community judgment predicting choice results via cognitive or conceptual claims produced by individuals before the debate is determined as Persuasive arguments theory.
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Thus the above is the right answer.

5 0
2 years ago
The Carter Corporation makes products A and B in a joint process from a single input, R. During a typical production run, 50,000
klemol [59]

Answer: $54,000 per production run

Explanation:

As we are dealing with the decision of whether or not to process the good further, the irrelevant cost would be the cost of producing product B from input R.

This is because this cost has already been incurred to produce product B and so is a sunk cost. Sunk costs are irrelevant to the decision to process further.

30,000 units of B were made from 90,000 units R so the cost of B is:

= 30,000 / 50,000 * 90,000

= $54,000

<em />

<em>The options here are probably for a variant of this question.</em>

8 0
3 years ago
What is a credit limit?
Sati [7]
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7 0
2 years ago
Read 2 more answers
What is the reason it's better to underestimate your income instead of overestimating when creating your budget?
Alik [6]

Answer:

  • <em>Underestimating your income is a conservative and healthy measure that can avoid financial problems.</em>

Explanation:

<em>Underestimating</em> your <em>income</em> is a conservative and healthy measure, such as it is overestimating your expenses.

Specially when your income is variable iit can be hard to predict. You will be safer both if your income lowers or your unpredictable expenses increase.

There are many unpredictable situations that could put you in a difficult situation: a disease, a natural disaster, the need to help a family member or friend in trouble. If any of these unfortunate circumstances arises and your budget is too tight, you could see yourself in financial trouble.

But, if you if all is smooth you will have in a happy situation, you will have a surplus which can use for savings, for an important purchase, or for vacations.

It is better to be cautious than to regret later!

6 0
3 years ago
Equity is A. always achieved by the market. B. when poorer​ people's income is growing more rapidly than more wealthy​ people's
lutik1710 [3]

Answer:

C. the fair distribution of economic benefits

Explanation:

In economics, there is equity in resource distribution if resources are distributed in such a way as to ensure fairness and justice.

In a command economy, in order to ensure justice and fairness, the government is charged with the responsibility of redistributing economic resources. While in a capitalist economy, the price system does the work of income redistribution.

The question of equitable resource distribution can be achieved through pareto  optimal allocation of resources, Vilfredo Pareto  in his book “Manual of Political Economy”, 1906. A Pareto-optimal allocation of resources is achieved when it got to a point where it is impossible to make anyone better off without making someone else worse off.

4 0
3 years ago
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