All categories

3 years ago

Use the following two statements to answer this question:

Business

1 answer:

s344n2d4d5 [400]3 years ago

7 0

Answer:

(D) I is true, and II is false

Explanation:

Increasing returns to scale means that during a production process, as input increases, output increases but by a larger proportion.

Economies of scale refers to the decrease in average cost per unit as a firm increases its output.

The increase in output brought about by increasing returns to scale causes cost per unit to decrease (which is economies of scale).

Therefore increasing returns to scale causes economies of scale.

You might be interested in

The primary drawback of the edison talking machine for sound recording was:

Nataliya [291]

Only one recording of a given sound could be made; copies were not possible.
Hope this helps! :)

4 0

3 years ago

Earleton Manufacturing Company has $2 billion in sales and $600,000,000 in fixed assets. Currently, the company's fixed assets a

bearhunter [10]

Answer:

The correct answer is $2,500,000,000.

Explanation:

According to the scenario, the computation of the given data are as follows:

Operating capacity = 80%

Sales = $2 billion

Fixed assets = $600,000,000

So, we can calculate the level of sales by using following formula:

Level of sales = Sales ÷ operating capacity

= $2,000,000,000 ÷ 80%

= $2,500,000,000

7 0

3 years ago

Calculate the percentage rate management fees on the following: $575 adjusted per-unit fee, 50 total units, $600,000 annual gros

arlik [135]

Answer:

19.1% management rate.

Explanation:

Adjusted fee charge per unit = 575

Adjusted fee charge for total unit of product = 575 * 50 = $28750

Net after feel charge on goods = 600000 - 28750 = $571250

15% vacancy and loss rate = .15 * 571250 = $85687.5

Total management fee per year = $114437.5

Percentage rate management fee = (114437.5/600000) *100

= 19.1 %

8 0

3 years ago

Investing $2,000,000 in TQM's Channel Support Systems initiative will at a minimum increase demand for your products 3.0% in thi

Wittaler [7]

Answer:

Option (a) is correct answer (14 Months)

Explanation:

Given data

Investing in TQM = $2,000,000

Minimum rise in demand = 3.0 %

Last year’s sales = $163,508,343

As per the given data next year sales is increased by 3.0%. So, 3.0% of last year sales

=> 0.03 × $163,508,343 = $4,905,250.29 ~= $4,905,250

Income added to the bottom line = 34.1% of increased demand

=> 0.341 × $4,905,250 = $1,672,690.25~= $1,672,690

Payback on the initial $2,000,000 TQM investment can be attained in a period and can be computed by using the formula

=> (Investment in TQM / Revenue added to the bottom line) × 12

=> ($2,000,000 / $1,672,690) ×12 = 14.34 ~ = 14 Months

7 0

3 years ago

The statement of cash flows shows the following information: Cash provided by operating activities of $18,200 Cash used by inves

Rudiy27

Answer:

$27,400

Explanation:

The amount of cash at the end of the period is calculated as;

Cash provided by operating activities

$18,200

Cash used by investing activities

($6,700)

Cash used by financing activities

($1,200)

Net increase (decrease) in cash balance

(a) $10,300

Cash at the beginning of the year

(b) $17,100

Cash at the end of the year

c = (a) + (b) = $27,400

8 0

2 years ago