Services are now the largest single component of the supply side of gdp, representing over half of gdp.
Answer:
The special order should be accepted.
Explanation:
Giving the following information:
At Bargain Electronics, it costs $33 per unit ($18 variable and $15 fixed). A foreign wholesaler offers to buy 4,260 units at $29 each. Bargain Electronics will incur special shipping costs of $1 per unit.
Because it is a special offer and there is unused capacity we will not have into account the fixed costs.
Sales= 29*4260= 123,540
Variable costs= 80,940 (-)
Contribution margin= 42,600
The special order should be accepted.
<span>Given,
Andrew's earning was $55,000 per year.
Fees(tuition and other related expense) for MBA school that Andrew joined $25,000 per year.
To find: total cost of the degree(explicit cost+opportunity cost)
Solution:
Explicit cost = fees for the course including all the expenses = $25,000 per year for 2 years = $25,000*2 = $50,000.
Opportunity cost = the loss of benefits from one alternative when other alternative is chosen. In this case, it is salary from the job which Andrew quits to join MBA school = $55,000 per year for 2 years = 55000*2 = $1,10,000.
So, total cost of the degree = $50,000 + $1,10,000 = $1,60,000
Answer: Option C $1,60,000</span>
Answer:
9.44%
Explanation:
Market price = Next dividend/(return on equity - growth rate)
Therefore, we have:
$75 = $7 / (Return on equity - 5%)
(Return on equity - 5%) * $75 = $7
(Return on equity * $75) - (75$ * 5%) = $7
(Return on equity * $75) - $3.75 = $7
(Return on equity * $75) = $7 + $3.75
Return on equity = $10.75 / $75 = 0.1433, or 14.33%
WACC = (50% * 14.33%) + [(50% * 7% * (100% - 35%)] = 9.44%
Answer:
Lisette is focusing upon <u>quality aspect</u> of gaining a competitive advantage
Explanation:
Competitive advantage refers to those activities by which an enterprise gains an edge over it's competitors in the market for it's products.
There are multiple factors which lead to competitive advantage such as:
- Cost Structure
- Branding
- Quality of product offerings
- Distribution
- Intellectual Property
- Customer Service
As per the facts of the question, Lisette asked of the management to consistently produce appliances which meet customer expectations and perform as expected.
This facet relates to focus upon quality of product offerings.
When a company maintains the quality of it's products, it builds loyalty with customers who prefer it's products over rival firm's products. This is competitive advantage.