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Andrei [34K]
4 years ago
15

When total revenue is less than variable costs, a firm in a competitive market will?

Business
1 answer:
Vsevolod [243]4 years ago
7 0
Will have better deals or sales or lower prices.
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Kemp Corporation manufactures a variety of parts for use in its product. The company has always produced all of the necessary pa
dedylja [7]

Answer:

financial advantage of purchasing from outside vendor = $36,000

Explanation:

outside vendor offers 18,000 units at $40 per unit = $720,000

current production costs (for 18,000 units):

  • Direct materials $324,000
  • Direct labor $162,000
  • Variable manufacturing overhead $36,000
  • Fixed manufacturing overhead, traceable $162,000 ($54,000 avoidable)
  • Fixed manufacturing overhead, allocated $216,000 (not avoidable)
  • Total cost $900,000

total avoidable costs = $576,000

additional revenue generated by freed facilities = $180,000

financial advantage of purchasing from outside vendor = ($576,000 + $180,000) - $720,000 = $36,000

3 0
4 years ago
3. Based on sales, what products do customers want? How accurately did the
PilotLPTM [1.2K]

Answer: Market survey

Explanation:

One of the ways to determine what customers want is my doing s survey. A survey would guide you through what they want. One of the ways to do this survey to get accurate answers is through questionnaire's, questionnaire's could be sent through mobile or advert or mails, asking what exactly what the customers want, from the feedback, the owner can predict accurately.

5 0
3 years ago
If the Federal Open Market Committee engages in an open market purchase, it will shift the money _____ curve to the _____. deman
omeli [17]

If the Federal Open Market Committee engages in an open market purchase, it will shift the money supply curve to the right.

When the Federal Open Market Committee engages in an open market purchase, it is conducting an expansionary monetary policy. The aim of expansionary policies is to increase the money supply in the economy.

When an expansionary monetary policy is conducted, there would be an increase in the supply of money in the economy. This would lead to a rightward shift of the money supply curve.

To learn more about open market purchase, please check: brainly.com/question/4446110

4 0
2 years ago
Which is a risk in IS development?
Inessa [10]

Answer: system unavailability

Explanation:

4 0
3 years ago
Miami Book Publishers (MBP) just reported earnings of $20 million, and it plans to retain 35 percent of its earnings. If MBP’s h
prohojiy [21]

Answer:

5.25%

Explanation:

The computation of the expected growth rate for MBP’s earnings is shown below:

Expected growth rate = Historical return on equity (ROE) × retention ratio

= 15% × 35%

= 5.25%

We simply multiplied the return on equity with the retention ratio so that the expected growth rate could come

The earnings that are mentioned in the question is not relevant. Hence, ignored it

7 0
4 years ago
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