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3 years ago

What is it meant by economies of scale?

1 answer:

8 0

Economies of scale refers to the cost advantage that emerges or become visible with higher or improved output of a product. There is an inverse relationship between the quantity proposed and per unit fixed costs therefore, if the product or good is produced in large or high quanity the per unit fixed cost goes down because it can already be shared with other large number of goods. There are two types of economics of sale, the internal and of course the external.

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An outside supplier offers to provide Epsilon with all the units it needs at $63.05 per unit. If Epsilon buys from the supplier,

ICE Princess25 [194]

Answer:

Make since the relevant cost to make it is $59.05

Explanation:

Calculation to determine what Epsilon should choose to:

Relevant costs to make = 8.20 + 24.20 + [41*(100%-35%)]

Relevant costs to make = 8.20 + 24.20 + (41*65%)

Relevant costs to make = 8.20 + 24.20 + 26.65

Relevant costs to make =$59.05

Therefore Epsilon should choose to: MAKE SINCE THE RELEVANT COST TO MAKE IT IS $59.05

8 0

3 years ago

Bill Wessels has reviewed the strategic plan from corporate headquarters and is considering how to develop an annual business pl

LekaFEV [45]

Answer:

Bill is probably a(n)

SBU manager.

Explanation:

Bill Wessels, as a strategic business unit (SBU) manager, is responsible for strategic planning, profitability, and performance of his business unit. The SBU is a separate identifiable business unit in an entity with other SBUs. It has a manager, who is largely autonomous in pursuing the business mission of the unit. It manages and accounts for its resource utilization separately from other units. Its performance is evaulated based on set criteria.

5 0

3 years ago

You are thinking of building a new machine that will save you $ 2 comma 000 in the first year. The machine will then begin to we

Serga [27]

Answer:

Present Value= $18,181.82

Explanation:

Giving the following information:

Savings= $2,000

The machine will then begin to wear out so that the savings decline at a rate of 4 % per year forever.

Interest rate= 7%

To determine the present value of the savings, we need to use the perpetual annuity formula with the decline rate.

PV= Cf/ (i + g)

Cf= cash flow

PV= 2,000/ (0.07 + 0.04)

PV= $18,181.82

4 0

3 years ago

The sea wharf restaurant would like to determine the best way to allocate a monthly advertising budget of $1000 between newspape

Andreas93 [3]

From what I understood in the problem, the total budget that covers all types of media is only $1,000 per month. For the allocation, each type of media would get at least 25% of the budget. If we infer on this information, there should only be 4 types of media, at least. This is because four 25% portions would equal to 100%. If it exceeds 25% for each of the four types, it would be over the $1000 budget. With that being said, it is also possible that there will be 3 or 2 types of media. Nevertheless, let's just stick to the least assumption of 25% for each of the 4 types.

If local newspaper advertising is one of the four types, then:

$1000(25%) = $250

It would get $250 from the overall budget.

5 0

3 years ago

You purchased a stock for $29.40 a share, received a dividend of $0.72 per share, and sold the stock after one year for $31.30 a

Ludmilka [50]

Answer:

2.45%

Explanation:

dividend yield = annual dividend / Stock Price per share

$0.72 / $ 29.40 = 0.0245 (2.45%)

6 0

3 years ago